GRAIN CALLS
Corn: 1 cent lower to 2 cents higher.
Soybeans: 5 to 8 cents higher.
Wheat: Winter wheat 2 to 5 cents lower; spring wheat 2 cents lower to 2 cents higher.
GENERAL COMMENTS: Corn and wheat futures were mostly lower overnight, while soy complex futures posted gains. Corn may get a boost from another daily export sale. Front-month crude oil futures are more than $1 higher this morning, while the U.S. dollar index is near unchanged.
USDA reported daily corn export sales of 112,800 MT to unknown destinations for 2022-23. This follows the recent string of strong old-crop corn export sales to China that totaled 2.752 MMT since March 14.
AgRural says Brazil’s soybean harvest reached 70% completed as of last Thursday, behind 75% on that date last year. Harvest is wrapping up in central Brazil. The firm says safrinha corn planting reached 96% done. Safrinha planting is “finished in Mato Grosso and Goiás and practically finished in São Paulo, but there is still a significant delay in Mato Grosso do Sul and Paraná.”
Argentina and Brazil experienced quieter weather during the weekend and more of the same is expected this workweek, according to World Weather Inc. Argentina will trend wetter this upcoming weekend and especially next week with Brazil wetter in the second week of the outlook. Central Brazil crop areas will not likely see much rain for a while.
Welcome rain and snow fell across the Central Plains during the weekend, lifting topsoil moisture in southern Nebraska, northwestern Kansas and northeastern Colorado. World Weather says dry areas in the southwestern Plains are unlikely to see much moisture for a while. Some states will update their winter wheat condition ratings this afternoon.
World Weather says planting delays are likely over the next 10 days in the Delta and possibly in early April in some lower Midwest locations. World Weather says concerns over flooding in the Red River valley and Upper Midwest remains elevated.
CORN: May corn futures weakened overnight after failing to find buying above Friday’s closing level. Near-term support is the 5-day moving average at $6.35 3/4, followed by the 10-day average near $6.32 1/2. Friday’s high at $6.45 is near-term resistance, followed by the 40-day moving average at $6.51 1/2.
SOYBEANS: May soybean futures extended Friday’s corrective gains during overnight trade. Near-term resistance starts at the 5-day moving average around $14.39 1/2. Near-term support is layered from last Friday’s low at $14.05 to the October low at $13.80.
WHEAT: May SRW wheat futures failed to find sustained buying above last Friday’s closing level and weakened during overnight trade. Near-term support extends from the 5-day moving average at $6.76 1/2 to the March low at $6.54. Near-term resistance extends from last Friday’s high at $7.00 1/2 to $7.12 1/2.
LIVESTOCK CALLS
CATTLE: Mixed.
HOGS: Choppy/firmer.
CATTLE: Live cattle futures are expected to open with two-sided trade. While futures finished strong on Friday, it’s unlikely that will lead to active followthrough selling. Last week’s cash cattle trade was mixed, with weaker prices in the Southern Plains while the northern market was steady/firmer. Choice boxed beef prices fell $2.90 on Friday and movement slowed to 108 loads. Seasonally, the wholesale beef market should begin to strengthen soon as Lent is nearing an end and the grilling season is just around the corner. Plus, beef supplies continue to tighten as market-ready numbers shrink and carcass weights are well under year-ago.
HOGS: Lean hog futures are expected to open with a mostly firmer on followthrough corrective buying after strong gains last Friday. But buyer interest is likely to be limited by the weakening cash market. The CME lean hog index is down 40 cents to $76.99 (as of March 23). That marks the fifth straight daily decline totaling $3.02 from the recent peak. After strong corrective gains last Friday, April lean hog futures finished 18 1/2 cents above today’s cash quote. The pork cutout value firmed 75 cents on Friday while movement totaled 247 loads.