🌽 Grain Markets
Corn and soybeans are sharply higher, an interesting move for this time of year and one that could point toward higher valuations into Labor Day.
The Pro Farmer Crop Tour is underway, and early findings aren’t showing the robust crop many expected ahead of last week’s USDA report.
Pushed maturity and heat stress are showing up across the Western Corn Belt, from North Dakota south through Kansas and Texas.
Yield expectations are starting to shift toward 180 bushels per acre or potentially lower.
Corn export inspections remain phenomenal, with booked corn actually leaving the country — leaving little room for cancellations.
No soybean flash sales were reported this morning, but China remains an active buyer.
NOPA reported a record soybean crush, although it came in slightly below expectations.
The bigger story was soybean oil stocks falling to 1.36 billion pounds, nearly
10% below June and the lowest since last October.
Expanding renewable diesel usage following recent EPA announcements is helping tighten soybean oil supplies.
November soybeans +24¼¢ at $12.16¾.
France’s Farmers Union estimates its corn crop could fall to just 5–5.5 MMT, with more corn being chopped for silage to feed cattle.
A smaller French and European crop could mean increased demand for U.S. corn exports.
September corn +7½¢ at $4.66¼.
December corn +8¢ at $4.91¼, near the high of the day.
🌾 Wheat
Wheat is taking a pause after recent strength as traders shift money into the rallying corn and soybean markets.
Spread unwinding is also weighing on wheat as traders buy corn and beans while selling wheat against those positions.
Today’s quieter trade does not mean the Black Sea situation has been resolved.
Russia’s Novorossiysk port remains offline, while Odessa continues to face heavy Russian drone attacks.
September Kansas City +4¼¢ at $7.58½.
September Chicago +¾¢ at $6.75¾.
Minneapolis wheat is softer as harvest pressure, active farmer selling and reasonable early yields weigh on prices.
September Minneapolis -3¢ at $6.75½.
December Minneapolis -1¼¢ at $7.03.
🐄 Livestock
Cattle futures opened sharply higher as traders looked for a recovery from last week’s washout.
Friday’s stronger finish above some key technical levels helped inspire early buying.
That rally was checked during the day session as new hedging pressure showed up.
Box beef is sharply stronger, with Choice +$2.36 and Select +$9.78.
Select struggled last week and appears to be making up some lost ground.
August live cattle +77¢ at $224.40 as the contract waits to converge with the cash market later this week.
October live cattle -20¢ at $218.67.
December live cattle +5¢ at $218.42.
The feeder cattle index slipped 47¢ to $344.43.
Feeder cattle were also sharply higher this morning before the rally was checked.
August feeders -$1.25 at $339.57.
September feeders -$1.75 at $332.75.
October feeders -40¢ at $325.02.
