GRAIN CALLS
Corn: 1 to 3 cents lower.
Soybeans: 3 to 5 cents lower.
Wheat: Winter wheat 2 to 5 cents lower; HRS steady to 2 cents lower.
GENERAL COMMENTS: Corn, soybeans and wheat each traded lower in overnight trade, though buying interest increased in beans and wheat into the break. Outside markets saw a bump in volatility this morning as ADP reported smaller than expected jobs growth in November, which continues to point to the Federal Reserve’s ability cut interest rates. Front-month crude oil futures are higher and near recent highs while the U.S. dollar index is over 250 points higher.
USDA reported daily sales of 30,000 MT of soyoil for delivery to South Korea during the 2024-25 marketing year.
South Korea’s opposition leaders called for impeachment of President Yoon Suk Yeol after he briefly imposed martial law but then reversed his decision. French President Macron is asking French lawmakers to reject a vote of no confidence that would topple his government. The no-confidence vote is scheduled to begin around 9:00 a.m. CT.
Mexico expects a decision by Dec. 14 in the U.S. challenge to its ban on GMO corn imports for food use, according to Mexico Economy Minister Marcelo Ebrard. The case, brought under the U.S.-Mexico-Canada Agreement (USMCA), concerns Mexico’s restriction on white corn imports, which it claims to be self-sufficient in producing. The U.S. argues the policy could disrupt trade and potentially affect GMO yellow corn used for feed. Despite the pending ruling, Mexico may choose to maintain its policy even if the panel rules against it. Ebrard described USMCA as the “best deal the region ever had.”
House and Senate leaders are working toward a continuing resolution (CR) to prevent a government shutdown and extend funding until late March 2025. House Speaker Mike Johnson (R-La.) expressed optimism that appropriators would finalize fiscal year (FY) 2025 spending bills well before the proposed deadline. The CR, expected to include disaster aid and a one-year farm bill extension, aims for agreement this week, as government funding expires on Dec. 20.
CORN: March corn futures continue to struggle against the 40-day moving average, which will remain resistance at $4.32 3/4. Strength above that mark finds resistance at $4.36 1/4, while additional selling pressure finds support at $4.29 3/4, then last week’s low of $4.25 1/2.
SOYBEANS: January soybean futures gave up most of Tuesday’s gain overnight. Bulls are looking to defend uptrend support at $9.84, else a trip to Monday’s low of $9.77 1/2 seems likely. Resistance stands at $9.89 1/2 then the psychological $10.00 mark.
WHEAT: March SRW futures made a fresh contract low overnight. Additional selling pressure finds support at $5.33. Meanwhile, corrective strength finds resistance at $5.47 1/4 then the 10-day moving average at $5.53 1/4.
LIVESTOCK CALLS
CATTLE: Choppy/lower.
HOGS: Choppy/lower.
CATTLE: Live cattle futures and feeders are expected to open with a mostly weaker tone, led by technical selling pressure. February live cattle futures closed near the upper end of the recent range Tuesday, though gains were pared by strong resistance that has capped the upside over the past couple of months. Cash cattle trade remains light so far this week. Wholesale beef ended Tuesday weaker, with Choice cutout dropping $2.18 to $310.83 and Select slipping $1.67 to $275.33, though movement firmed to 154 loads.
HOGS: Lean hog futures are expected to open with a mostly weaker tone in a continuation of yesterday’s weakness from a fresh for-the-move high, though modest discounts to the cash index could limit losses after the open. The CME lean hog index is down another 30 cents to $84.06 as of Dec. 2, which is 22 cents above the October low. The second day’s calculation for the index (remember it is a two-day average) actually rose above the prior day, indicating relative strength in the cash market. Traders will keep a close eye on the cash market today to see if strength continues. Pork cutout plunged $3.05 to $89.61, led lower by a $14.59 drop in bellies.