Note: Grain and livestock markets will observe normal trading hours today. All markets and government offices are closed on Monday, May 26, for Memorial Day. There will be no Pro Farmer updates on Monday. Grain markets reopen with the overnight session at 7:00 p.m. CT on Monday. Livestock markets resume trade at 8:30 a.m. CT on Tuesday, May 27. Pro Farmer salutes those who lost loved ones serving our great country.
Corn futures are 4 to 6 cents lower.
- Corn futures are under pressure as they pull back from gains earlier this week amid elevated trade uncertainty.
- Markets are reeling this morning following President Trump’s proposed 50% tariff on the EU, which would take effect on June 1.
- China recently disbursed 1.4 billion yuan ($194.42 million) of central government funds earmarked for agricultural production disaster prevention and relief, according to a statement from the ag ministry.
- Center-west and center-south Brazil has a good chance of getting some timely rain next week as a colder airmass pushes into Brazil from Argentina, according to World Weather inc. The rain will be light to locally moderate.
- July corn futures continue to chop between the 40-day moving average of $4.68 and the 10-day moving average of $4.50 3/4.
Soybeans are 6 to 10 cents lower, while soymeal futures are around $3.00 higher. Soyoil is modestly higher.
- Soybeans are taking back a portion of this week’s gains amid trade uncertainty.
- Trump’s proposed 50% tariff on the EU, which would take effect on June 1, is weighing on soybeans. He cited many non-tariff trade barriers as justification for the increase of tariffs.
- U.S. holiday weekend weather will be wet from western South Dakota and eastern Montana to the Delta and southeastern Great Plains. Some heavy rain and flooding are likely in southern Missouri, the Delta, southeastern Kansas, eastern Oklahoma and north-central and northeastern Texas.
- July soybeans continue to find support at the 20-day moving average of $10.55 1/4, while resistance remains at $10.75 1/4.
Winter wheat futures are 4 to 6 cents lower, while HRS futures are a penny to 2 cents firmer.
- SRW wheat futures are favoring the downside despite a sharply weaker U.S. dollar.
- Russia has removed a minimum wheat price recommendation for its grain export traders until the end of 2024-25 on July 1, four market sources told Reuters. The minimum price recommendation for May and June had been $250 dollars a metric ton. Russia exported 38.6 MMT of wheat from July 2024 through April, according to estimates from the Rusagrotrans rail carrier, which forecasts total exports for the current season at 42.2 MMT.
- Russia’s Southern Region, eastern Ukraine and western Kazakhstan are unlikely to get much rain for the next week to 10 days and temps will trend warmer leading to some net drying conditions, notes World Weather.
- July SRW futures continue to face resistance at $5.50 1/2, while support at $5.39 3/4 is being tested.
Live cattle and feeders are modestly lower at midmorning.
- Nearby live cattle are weaker in narrow trade as traders await USDA’s Cattle on Feed Report later today. Strength in cash fundamentals is limiting seller interest.
- Analysts polled by Reuters expect USDA’s Cattle on Feed Report this afternoon to show the May 1 feedlot inventory declined 1.5% from year-ago to 11.381 million head. A focal point will remain placements, which are expected to have declined 3.2% from year-ago levels. Placements at 1.603 million head would represent the smallest total for April since 2020. Marketings are anticipated to have declined 3.3% in April since packers slowed slaughter runs amid struggles to source supplies and poor margins.
- USDA will detail frozen meat stocks at the end of April in the Cold Storage Report. The five-year average is a 16.5-million-lb. decline in beef stocks during the month.
- Wholesale beef continues to work higher as well, as Choice cutout is up another $1.38 to $360.97, while Select rose another 67 cents to $348.95 Thursday.
- June live cattle are trading within Thursday’s range, limited by resistance at $216.075, while the 10- and 20-day moving averages, trading at $214.20 and $212.99, serve up support.
Hog futures are slightly to moderately lower at midsession.
- Nearby lean hogs are modestly weaker as traders narrow the premium to the cash index amid an enhanced risk-off tone.
- The CME lean hog index is up another 41 cents to $92.75 as of May 21.
- Pork cutout was up 23 cents to $100.27 Thursday, led by strength in picnics and bellies, though movement remains light.
- USDA will detail frozen meat stocks at the end of April. The five-year average is a 21.7-million-lb. increase in pork stocks during the month.
- June lean hogs are facing initial support at $97.97, which is backed by the 40- and 200-day moving averages. Initial resistance stands at the 20- and 100-day moving averages of $98.91 and $99.04.