GRAIN CALLS
Corn: 1 to 3 cents higher.
Soybeans: 5 to 7 cents lower.
Wheat: 3 to 5 cents higher.
GENERAL COMMENTS: Corn and wheat favored the upside overnight and made new highs, while soybeans faced profit-taking. Each saw an increase in selling pressure into the break. Both front-month crude oil futures and the U.S. dollar index continue to undergo weakness and are nearing recent lows.
USDA reported daily sales of 330,000 MT of corn for delivery to Mexico during the 2025-26 marketing year.
China has delayed imports of up to 600,000 MT of mostly Australian wheat and offered some of these cargoes to other buyers as ample domestic supplies reduce demand, two trade sources with direct knowledge of the matter told Reuters. Around 10 ships in total from Australia and Canada scheduled for delivery in January or February were being delayed or resold, each carrying around 60,000 MT of wheat. China’s state-run COFCO, which is the importer of most of these delayed or redirected cargoes, is paying the costs of delaying shipments, including charges to hold back grain, and will take any gain or loss from reselling grain.
Ukraine is experiencing the lowest soil moisture levels of the last seven seasons, raising concerns about yields in 2025, the Ukrainian national agricultural academy said. “The total amount of precipitation for November-January was only 79.6 mm and was significantly inferior to the long-term average of 117 mm,” APK-Inform consultancy quoted the Academy as saying. Scientists said the insufficient amount of precipitation during most of the winter period and very low reserves of moisture in the soil “cause special concern for grain producers.”
China accused the U.S. of ignoring its cooperation on combating fentanyl after President Donald Trump imposed a 10% tariff on Beijing over the flow of illegal drugs. The tariffs, which took effect Tuesday, reignited a trade war between the two largest economies. In response, China imposed its own levies and launched an anti-trust probe into Google. Cooperation on fentanyl had been a rare bright spot in U.S./China relations, with former President Joe Biden previously brokering a deal to curb production. Trump hinted at a possible call with Chinese leader Xi Jinping but later downplayed its urgency. China called for dialogue over unilateral measures.
CORN: March corn futures marked a fresh high before facing profit-taking overnight. Strength finds resistance at $4.98 1/2 then the psychological $5.00 mark. Support comes in at $4.90 then the 10-day moving average at $4.88 1/2 on profit-taking.
SOYBEANS: March soybean futures saw profit-taking overnight. Bulls are seeking to hold support at $10.65 3/4 then the 10-day moving average at $10.55 3/4. Resistance stands at the psychological $10.75 mark then the overnight high of $10.79 3/4 on resurgent strength.
WHEAT: March SRW futures made fresh highs overnight. Bulls are eyeing resistance at $5.85 before tackling the 200-day moving average at $5.92 1/4. Support stands at $5.75 then the 100-day moving average at $5.68 on profit-taking.
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, though steep discounts to the cash market could limit losses after the open. April live cattle futures saw a modest bounce in late trading Tuesday, which bulls are looking to build on today. Reports that packers are curtailing production, with estimated slaughter expected under 600,000 head this week, feeds into the idea that the cash market is near a top. Wholesale beef ended Tuesday lower, as Choice cutout fell $1.26 to $330.73 while Select sunk $2.43 to $317.41.
HOGS: Lean hog futures are expected to open with a mostly firmer tone in a continuation of yesterday’s strength. Volatility is likely to persist in lean hog futures, which have been very sensitive to trade news and have traded in a volatile fashion most of this year. The CME lean hog index continues to work higher, most recently climbing 31 cents to $84.08 as of Feb. 3. That continues to support nearby February futures, which settled yesterday 99.5 cents above today’s quote for the index. Pork cutout rebounded 95 cents to $94.76 Tuesday, posting gains in all cuts except bellies.