Market Snapshot | Wheat grinds lower

Old-crop corn is a penny higher, while new-crop futures are 2 to 3 cents lower.

• Nearby corn futures are modestly firmer, while new-crop futures are facing light pressure amid mostly favorable weather conditions in the U.S. and increased production prospects in Brazil.
• USDA rated the corn crop as 71% “good” to “excellent” and 5% “poor” to “very poor.” On the weighted Pro Farmer Crop Condition Index (CCI; 0 to 500-point scale, with 500 representing perfect), the corn crop improved 3.3 points to 378.2.
• Drier areas from eastern South Dakota and northeastern Nebraska into central and southern Minnesota will benefit from moderate to heavy rain Wednesday into Thursday, according to World Weather Inc. Meanwhile, regular rounds of showers are expected throughout the Midwest over the next two weeks.
• South American crop consultant Dr. Michael Cordonnier raised his Brazilian corn production forecast 1 MMT to 130 MMT, as benefits of late-season rains more than offset any damage from recent frosts for the safrinha crop. Cordonnier kept his Argentine corn production estimate at 50 MMT.
• July corn futures are facing support at Monday’s low of $4.29 1/4, while initial resistance stands at $4.37 1/4.

Soybeans are 1 to 4 cents higher, while soymeal is modestly lower. Soyoil is around 50 points higher.

• Soybeans are continuing recent gains, with solid technical support spurring buyer interest.
• U.S. officials struck an optimistic tone as the second day of high-level trade talks with China unfolded in London. Treasury Secretary Scott Bessent described Monday’s session as a “good meeting,” while Commerce Secretary Howard Lutnick characterized the discussions as “fruitful,” noting on Tuesday that “they’re going well, and we’re spending lots of time together.”
• USDA rated the soybean crop as 68% “good” to “excellent,” and 5% “poor” to “very poor.” On our CCI, the soybean crop improved 1.5 points to 365.4.
• Cordonnier maintained his Brazilian and Argentine soybean production forecasts of 169 MMT and 48.5 MMT, respectively.
• July soybeans are challenging resistance at $10.60 1/2, with additional resistance at $10.65 1/4. Initial support lies at the 20-day moving average of $10.54 3/4.

Wheat futures are 8 to 13 cents lower.

• Wheat futures are extending Monday’s losses amid improved U.S. crop ratings.
• USDA rated the spring wheat crop as 53% “good” to “excellent” and 9% “poor” to “very poor.” On our CCI, the spring wheat crop improved 10.7 points to 356.0, fueled by a 9.9-point increase in top producer North Dakota.
• USDA reported the winter wheat crop was 54% “good” to “excellent,” up two points from last week, while 88% was headed and 4% harvested.
• Russia is likely to harvest “at least 135 MMT” of grain this year, up 5 MMT from 2024, Interfax news agency quoted Deputy Prime Minister Dmitry Patrushev as saying. The estimate includes the expected harvest from Russia-controlled regions of Ukraine, which provided about 4% of the country’s overall grain harvest in 2024.
• Unfavorable weather in Ukraine last fall led to a drop in wheat tillers, which could lead to a decrease in wheat yield, analyst ASAP Agri said. “Travelling across Kyiv, Cherkasy and Vinnytsia regions, we observed that water stress from last autumn through early spring has limited tillering,” ASAP Agri consultancy said.
• July SRW futures are trading at one-week lows. Support is in a range from $5.30 to $5.26 1/2. Previous support at $5.40 is now resistance.

Live cattle are lower, while feeders are higher at midsession.

• Nearby live cattle are slightly weaker as traders pause after recent gains, though steep discounts to the cash market are limiting selling. Heavier selling is being seen in deferred contracts.
• Cash cattle prices averaged a record $236.62 last week, up $6.68 from the previous week. This marked the eighth consecutive weekly gain during which prices have surged nearly $29.00 – and the seventh straight record price.
• Wholesale beef prices firmed $2.17 to $367.25 for Choice and $2.20 to $358.93 for Select on Monday. While those were new highs for the move and the second highest ever behind 2020, wholesale beef values haven’t kept pace with surging cash prices, keeping packer margins buried in the red.
• June live cattle are trading narrowly inside Monday’s range, with resistance at $227.875, while support lies at $226.675.

Hog futures are mixed in choppy trade at midmorning.

• Nearby lean hogs have edged to a new for-the-move high amid support from firm cash fundamentals.
• The CME lean hog index is up another 68 cents to $99.05 as of June 6, extending the seasonal rally to the highest level since August 2023.
• Pork cutout fell $1.22 to $110.29 on Monday, fueled by a $5.92 drop in primal hams, though that remained the highest since August 2023.
• China extended an investigation into imported pork from the European Union by six months. The investigation period was extended to Dec. 16 due to the “complexity” of the case, China’s commerce ministry said. While officially framed as a routine procedural extension, the move is widely seen as retaliation for EU tariffs on Chinese electric vehicles (EVs).
• July lean hogs have notched a new contract high for a third straight day, with resistance now at the intraday high at $108.425, while initial support lies at $107.09.