GRAIN CALLS
Corn: 2 to 4 cents higher.
Soybeans: 8 to 10 cents higher.
Wheat: SRW 1 to 3 cents higher; HRW 3 to 5 cents higher; HRS 7 to 9 cents higher.
GENERAL COMMENTS: Soybeans led overnight strength with corn following solidly to the upside. Wheat saw moderate strength. Recently, prices have shown strength on the open, key will be if that continues. Outside markets are supportive this morning as front-month crude oil futures continue to bounce from recent lows while the U.S. dollar index is over 300 points lower.
President Donald Trump said a fresh trade deal with China was “possible,” signaling a potential willingness to avoid a brewing trade war between Washington and Beijing, emphasizing that his “great” relationship with Chinese President Xi Jinping. The New York Times reported Trump expressed hope to reach a new broad trade agreement with Beijing, including asking China to increase purchases of American goods and make large investments in the United States.
The European Union is open to negotiating lower tariffs on automobiles and other goods to prevent a trade conflict with the U.S., according to Trade Commissioner Maros Sefcovic. Speaking in Washington, Sefcovic emphasized the EU’s commitment to de-escalation but warned that if the U.S. follows through on tariff threats, the bloc will respond “firmly and swiftly.” Sefcovic met with Commerce Secretary Howard Lutnick, Trump’s nominee to be U.S. Trade Representative Jamieson Greer and National Economic Council director Kevin Hassett — in Washington on Wednesday to discuss the various tariffs facing U.S. trading partners.
The European Union is taking steps to align import standards with domestic regulations, focusing on pesticide use and animal welfare. Announced on Wednesday, the move aims to address EU farmers’ concerns and ensure fair competition. Products treated with hazardous pesticides banned in the EU may be prohibited. A case-by-case approach will be used to assess toxic pesticide use. The restrictions may impact major exporters like the U.S., particularly soybean trade. Imported livestock products must meet EU welfare regulations.
Due to Monday’s government holiday, USDA’s export sales data for the week ended Feb. 13 will be released Friday morning.
CORN: March corn futures made up most of Wednesday’s loss overnight. Resistance stands at $5.02 then yesterday’s for-the-move high of $5.04 1/2. Bulls are seeking to hold support at $4.97 1/2 then $4.95, the 10-day moving average, on resurgent selling pressure.
SOYBEANS: March soybean futures led overnight strength. Bulls are looking to overcome resistance at $10.39 3/4, the 10-day moving average, which is reinforced by resistance at yesterday’s high of $10.47 3/4. Support stands at $10.33 1/2 then $10.27 3/4.
WHEAT: March SRW futures saw a modest bounce overnight. Bulls are looking to overcome psychological $6.00 resistance before challenging the Feb. 18 close of $6.04 3/4. Support comes in at $5.91 1/2, which limited selling yesterday, then $5.86 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 in a continuation of recent selling pressure. Prices are trending lower on the daily bar chart, which is likely to continue until there’s a fresh bullish catalyst. That could come after tomorrow’s close in the Cattle on Feed Report. Cash cattle trade remains minimal so far this week, offering little direction. Wholesale beef prices continue to work lower, with Choice cutout falling $1.88 to $313.89 Wednesday, while Select firmed a nickel to $303.76. Wholesale beef is likely to face additional near-term pressure given the seasonally weak period for beef demand.
HOGS: Lean hog futures are expected to open with a mostly firmer tone, supported by persistent strength in the cash hog market, though a continuation of selling pressure from Wednesday could limit gains after the open. While prices fell sharply Wednesday, recently it has been common for hog futures to rebound strongly after a day of strong selling. The CME lean hog index is up another 79 cents to $90.98, extending the seasonal climb. Pork cutout on the other hand has undergone weakness, led by plunging primal bellies. Pork cutout sunk $3.95 to $95.52 Wednesday. Over the past two days, cutout has dropped $6.95.