Corn is mostly unchanged to a penny lower.
- Corn futures continue to face technical headwinds and spillover pressure from wheat.
- World Weather Inc. notes while the central U.S. is expected to be very warm to hot over the next full week and possibly ten days, soil moisture should remain very good despite net drying that’s likely to occur.
- There are some reports surfacing from farmers and agronomists of corn pollination issues resulting from the “overly tight tassel wrap” phenomenon. The condition is not widespread but there are some pictures and commentary posted on social media and other websites.
- Ethanol production averaged 1.078 million barrels per day (bpd) during the week ended July 18, down 9,000 bpd from the previous week. Ethanol stocks rose 809,000 barrels to 24.444 million barrels, up 3.4% from the previous week.
- The 10- and 20-day moving averages, trading at $4.01 1/4 and $4.07 are curbing buyer interest, while support lies at $3.98 1/2 and the July 14 low of $3.91 1/4.
Soybeans are mostly 2 cents higher, while soymeal is 50 cents higher. Soyoil is around 35 points higher.
- Soybeans are firmer in tandem with meal and oil amid budding optimism around a trade deal with Japan.
- The U.S. and Japan announced late Tuesday a trade deal has been reached that will impose 15% tariffs on Japanese imports into the U.S., including automobiles, while Japan will create a $550 billion fund to make investments in the United States. President Trump called the trade deal the “largest ever.”
- Taiwan’s trade negotiators have arrived in the U.S. for talks aimed at clinching a trade deal with President Donald Trump’s team and averting a threatened 32% tariff, according to Bloomberg.
- Palm oil futures rose by over 1% Wednesday, extending solid gains from Tuesday and boosted by price strength in other edible oils. The Malaysian Palm Oil Council said it expects prices to remain supported over the next month due to strong soybean oil markets and rising festive demand from top buyer India.
- August soybean futures continue to face resistance at the 20-day moving average of $10.21 1/2, while support lies at the 10-day moving average of $10.11 1/4 and $10.04 1/4.
Wheat futures are mostly 2 to 6 cents lower.
- SRW wheat futures are favoring the downside in sideways consolidation, as technical resistance limits buyer interest.
- World Weather Inc. reports some areas in southeastern Ukraine and southern parts of Russia’s Southern Region still need greater rain.
- Canada’s Prairies will get scattered showers during the next ten days, although northeastern crop areas will remain driest and the crops in the region quite stressed, states World Weather.
- December SRW futures are trading within Tuesday’s upper range, limited by the 40-day moving average of $5.72 3/4, while support is layered at the 10-day moving average of $5.64, then at $5.60 1/2.
Live cattle are firmer at midsession.
- Nearby live cattle have backed off the fresh record high posted in early trade, though continue to post modest gains.
- Cash cattle trade continues to remain light as packers continue to delay paying up for cattle amid negative cutting margins. Friday’s Cattle on Feed Report will likely push negotiations late into the week.
- Choice boxed beef rose 43 cents on Tuesday to $372.50, while Select fell $2.11 to $347.94. Movement totaled 136 loads for the day.
- August live cattle have scored a new record high of $226.475, which now serves as resistance, while support lies at $224.93, then $224.14.
Hog futures are weaker at midmorning.
- Nearby lean hogs are weaker amid profit-taking and pressure from wholesale weakness.
- The CME lean hog index is up another 39 cents to $108.59 as of July 21.
- Pork cutout fell $1.37 on Tuesday, led by declines in primal bellies, butts and ribs. Movement totaled 341.5 loads.
- August lean hogs are facing resistance at the 40-day moving average of $107.82, while support lies at the 20-day moving average of $106.95.