GRAIN CALLS
Corn: 1 cent lower to 1 cent higher.
Soybeans: 2 to 4 cents higher.
Wheat: Winter wheat steady to 2 cents lower; HRS steady to 2 cents higher.
GENERAL COMMENTS: Corn, soybeans and wheat each traded in narrow ranges on light volume overnight. Volatility is expected to be minimal today as several markets across the world are closed. Front-month crude oil futures are modestly higher this morning while the U.S. dollar index is near unchanged.
Grain and livestock markets trade abbreviated sessions today, closing at 12:05 and 12:15 CT, respectively. All markets and government offices are closed on Wednesday, Dec. 25, for Christmas. There will be no Pro Farmer updates on Wednesday. Grain and livestock markets will reopen at 8:30 a.m. CT on Thursday, Dec. 26. Pro Farmer wishes you a blessed Christmas.
Weather remains favorable for Brazil’s soybean crop and early yields are strong, causing South American crop consultant Dr. Michael Cordonnier to raise his Brazilian soybean production forecast by 1 MMT to 171 MMT. He maintains a neutral to higher bias toward the soybean crop. Cordonnier left his Brazilian corn crop peg at 125 MMT with a neutral bias. For Argentina, Cordonnier left his production estimates at 55 MMT for soybeans and 49 MMT for corn with a neutral to lower bias toward both crops.
China’s 2024-2035 action plan, jointly issued by the National Food and Strategic Reserves Administration and other government departments, plan to boost consumption of cereal grains and develop the industry through higher production standards, research and international cooperation as part of efforts to enhance food security. The plan also encourages companies and private capital to establish development funds to support the whole grain industry. China said it would “vigorously promote” the health benefits of consuming cereal grains and recommend cereal grain foods in nutritional dietary guidance, particularly in government offices, campuses and military camps.
CORN: March corn futures pivoted near unchanged overnight. Initial resistance at $4.49 is quickly backed by the Dec. 11 high of $4.51 1/4. Support comes in at $4.45 then the 10-day moving average at $4.43 3/4 on a reversal lower.
SOYBEANS: January soybean futures bounced overnight. Bulls are looking to overcome 10-day moving average resistance at $9.75 1/4, which is backed by $9.79 1/4. Support lies at $9.68 then $9.63 on resurgent selling pressure.
WHEAT: March SRW futures saw modest weakness overnight. Further selling finds support at $5.33 1/4 then the contract low of $5.29 1/4. Resistance stands at $5.40 then the 10-day moving average at $5.43 1/4.
LIVESTOCK CALLS
CATTLE: Choppy/lower.
HOGS: Choppy/higher.
CATTLE: Live cattle futures and feeders are expected to open with a mostly weaker tone as February futures are likely to trade in a tight range in light volume holiday trade. Last week’s cash cattle average climbed another 42 cents to $194.73, the fifth consecutive weekly gain. Traders are anticipating a top could be near as the next two weeks feature holiday shortened slaughters and fresh contracted supplies are available early next week. Wholesale beef prices were modestly higher Monday with Choice cutout climbing 13 cents to $315.98 while Select climbed 84 cents to $286.75.
HOGS: Lean hog futures are expected to open with a mostly firmer tone, supported by strength in the cash index. The CME lean hog index is up another 40 cents to $84.75 as of Dec. 20, marking gains in six out of the last eight days. During that span, the index has risen $1.42 from wheat appears to be the seasonal low. Pork cutout underwent heavy pressure on Monday, falling $2.66 to $94.62 as all cuts posted losses on the day. Bellies led cutout lower, falling $9.35. The Hogs & Pigs Report was mildly negative, which could pare gains after the open, as the hog herd came in above expectations.