One Week to the USDA Acreage Report — Here's What to Watch in Corn, Beans & Wheat

Grain and Oilseeds Wrap Up

December corn slipped to losses of as much as 4 cents to take prices to a challenge of the June 15th low set near $4.34. The market tried to recover but couldn’t mount much of a bounce while wheat prices were taking on double-digit losses. Plan on choppy price action to remain the theme at least until the trade gets a look at next Tuesday’s Acreage and Quarterly Stocks data.

November soybeans again challenged $11.50 in the early morning hours and again saw strength evaporate during the daytime session. Beans have been able to pop recently but rallies are requiring Chinese demand news, which hasn’t materialized often enough to keep Bulls active. Look for another challenge of the $11.20 to $11.30 zone if weather forecasts stay nonthreatening.

The wheat markets are in trouble as both Kansas City and Chicago prices approach key support. The December Kansas City contract needs to hold above $6.40 while the December Chicago contract needs to hold $6.10 to avoid a technical breakdown. Parts of Europe are facing high heat this week, but funds don’t seem afraid to build their short position into the U.S. harvest season.

Cattle

August live cattle continue to back down from another challenge of key resistance around $250. The test of highs set back in May have prompted another round of producer hedging and a likely reason prices quite can’t break to fresh highs. The cash market is holding up around $260 and ongoing strength there won’t let futures values to fall drastically unless a negative headline surfaces again. Look for a pullback into the $240 to $243 range if you’re looking for a spot to add to the long side.

August feeders slipped to $2.00 losses today with the latest uptrend likely hitting resistance on the approach of the $375 area. The August contract posted highs within the $375 to $380 zone in April and again in May. Another Cattle on Feed report with lower than expected placements should keep buyers active following pullbacks.

Hogs

August and October hogs reached gains of more than $1.50 before momentum slipped around midday. Cutout values have been stuck in a sideways range for a while now and that’s kept enthusiasm in the futures market running at a minimum. August hogs need a close above $97.50 to gain better upside momentum. If you’re looking to enter the long side of the hog market, take a look at the October contract that currently holds a $16.00 discount to the August contract.  

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