GRAIN CALLS
Corn: 3 to 5 cents higher.
Soybeans: 12 to 15 cents higher.
Wheat: Winter wheat 5 to 7 cents higher, HRS 3 to 5 cents higher.
GENERAL COMMENTS: Corn continues to lead strength, making new highs, which has supported the grain and soy complex. Some corrective selling is possible given near-term overbought conditions in corn. It is another slow week for economic news with the New Years holiday Wednesday. Outside markets are mixed this morning as front-month crude oil futures are modestly higher and near recent highs. The dollar index is near unchanged, while equity futures are sharply lower and about 3.5% below the mid-December all-time high.
USDA reported daily sales of 23,000 MT of soyoil for delivery to India during the 2024-25 marketing year.
Brazil will be quite wet from eastern Mato Grosso, Goias and parts of Tocantins to Minas Gerais and northern Sao Paulo during the next week to 10 days, according to World Weather Inc. Central and east-central Argentina, portions of Uruguay, western Rio Grande do Sul and southwestern Paraguay will be dry or mostly dry for at least 10 days and probably two weeks.
Argentine farmers are expected to plant 6.6 million hectares of corn this year, according to the Buenos Aires Grain Exchange, up 300,000 hectares from its prior forecast. Soybean planted area was reduced 200,000 hectares from the exchange’s prior forecast.
Illinois Governor JB Pritzker announced an $820 million investment by Avina Clean Hydrogen in Southwest Illinois to establish a state-of-the-art facility producing sustainable aviation fuel (SAF). The project, in collaboration with the Illinois Department of Commerce and Economic Opportunity (DCEO), aims to strengthen Illinois’ clean energy economy, create 1,150 jobs and reduce aviation carbon emissions by up to 25 MMT annually. The facility will leverage existing infrastructure to supply ASTM-certified fuel to major Midwest airports, aligning with Illinois’ 2024 Economic Growth Plan and boosting the state’s leadership in clean energy and advanced manufacturing.
CORN: March corn futures forged a fresh for-the-move high overnight. Next resistance stands at $4.63 1/4. Support stands at $4.52 1/4 then the psychological $4.50 mark on profit-taking efforts.
SOYBEANS: March soybean futures struggled to overcome psychological $10.00 resistance overnight. Additional strength eyes resistance at $10.06 1/2. Support stands at $9.88 then $9.75 on resurgent selling pressure.
WHEAT: March SRW futures posted impressive gains overnight. Bulls are eyeing stiff resistance at $5.58 1/2, the 40-day moving average. Support lies at the psychological $5.50 mark then the 10-day moving average at $5.44 3/4 on a reversal lower.
LIVESTOCK CALLS
CATTLE: Higher.
HOGS: Mixed.
CATTLE: Live cattle and feeders are expected to open higher as stronger-than-expected cash cattle trade to finish out last week supports futures. Cash cattle traded at mostly $1.00 higher prices last Friday, suggesting the string of cash strength will extend to six consecutive weeks when official data is released later this morning. Strength in wholesale beef prices is supportive of futures as well, as Choice cutout climbed another $322.28 to $1.99 Friday, while Select climbed $2.36 to $291.13.
HOGS: Lean hog futures are expected to open with a mixed tone, continuing that trend from the latter portion of last week. February lean hogs have traded with little direction and the dip in the cash index is likely to encourage more of the same. The index is down 25 cents to $84.85 as of Dec. 26, ending a six-day string of gains. Pork cutout slid 62 cents to $95.07 Friday, led lower by picnics and loins. Movement remained slow at 241.89 loads, which could lead to further pressure on wholesale prices as packers’ inventory ticks up.