Corn:
Dec corn down 5 after Monday’s strong rally on hopes China includes US corn in a summit package, likely as a longer term framework deal. Ukraine says it is willing to look at options for an unconditional ceasefire and Turkey is in talks with Russia on grain export safety, part of this morning’s pressure. Harvest is 13% complete vs the 11% average: a bullish headline meets significant resistance near 560, while below 515 stays a buying opportunity.
Soybeans:
Nov beans down 8 1/2, still inside the month’s 45 cent range ahead of Thursday’s summit with headline risk extreme into Friday. SinoGrain sold 338,674 tonnes of reserve beans overnight with another auction set for Monday, clearing room for US beans, and harvest hit 12% complete vs the 8% average. Expect a breakout by Friday: above 1335 1/4 targets 1344 then 1366, while below 1292 opens 1260 to 1270.
Wheat:
Dec Chicago wheat down 9 3/4 and Dec KC down 12 1/4 on the ceasefire talk plus a soil moisture boost coming for the Southwest Plains through the weekend. China is unlikely to buy US wheat at the summit with US prices well above other origins: Russian values fell $6 this week to $268 a tonne. A drop below this month’s low at 710 would be a negative technical sign, with 701 behind it.
Livestock:
Dec live cattle gapped higher Monday off Friday’s friendly Cattle on Feed and closed near the highs: the 217.50 to 218.95 gap is good support with a challenge of the month’s highs at 225.50 possible, close in resistance 223.30. Cutout jumped $4.41 to $376.35 and southern cash traded 227 on Saturday. Dec hogs made their first higher daily high in 7 sessions off Friday’s contract low: the lean hog index at 84.02 is the lowest since January 27, and follow through is needed today, support 67.10.
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