GRAIN CALLS
Corn: 2 to 4 cents higher.
Soybeans: 9 to 12 cents higher.
Wheat: SRW steady to 2 cents lower; HRW steady to 2 cents higher; HRS 2 to 4 cents higher.
GENERAL COMMENTS: Corn and soybeans traded higher overnight, while winter wheat favored the downside. Buying interest picked up in each going into the break, especially in soybeans, which went into the break on session highs. Front-month crude oil futures continue to consolidate near recent highs, while the dollar index is up about 200 points, bouncing from recent lows.
Grain and livestock markets will observe normal trading hours today. All markets and government offices are closed Monday, Jan. 20, for Martin Luther King Jr. Day. There will be no Pro Farmer updates Monday. Grain markets resume trading with the overnight session at 7:00 p.m. CT on Monday. Livestock markets reopen at 8:30 a.m. CT. on Tuesday, Jan. 21.
Chinese soy processors have turned to competitively priced Brazilian cargoes instead of U.S. soybeans amid fears Washington will impose tariffs after President-elect Donald Trump takes office on Jan. 20. Chinese processors have secured nearly all of their cargoes from Brazil for first quarter shipment, three trade sources told Reuters. “Both state-owned and private crushers, all of them are taking Brazilian beans. It is a 100% shift to Brazil,” one source said.
The La Niña bias that fueled dry weather in Argentina since last fall remain in place, but World Weather Inc. says conditions have changed enough to allow weakness in the upper air wind flow to support near-term opportunities for rain. But the resulting rainfall may still be erratic and lighter than usual. While conditions are no longer supportive of absolute dryness and hot temperatures, they may return later in February.
CORN: March corn futures continue to consolidate near recent highs. Bulls are looking to challenge resistance at $4.79 3/4, the for-the-move high. Support comes in at $4.74 1/2 then $4.69, the 10-day moving average, on additional consolidation.
SOYBEANS: March soybean futures rebounded overnight. Resistance at the 100-day moving average at $10.25 1/2 limited gains overnight. Above that mark, bulls are targeting $10.33 1/2 resistance. Support comes in at $10.22 then the 20-day moving average at $10.12 1/2 on a reversal lower.
WHEAT: March SRW futures continue to trend lower on the daily bar chart. Tentative support comes in at $5.33 though bears are ultimately targeting the contract low of $5.26. Resistance stands at $5.39 3/4 then this week’s high of $5.52 1/4.
LIVESTOCK CALLS
CATTLE: Choppy/higher.
HOGS: Lower.
CATTLE: Live cattle futures and feeders are expected to open with a mostly firmer tone, supported by steep discounts to the cash cattle market. February futures saw additional profit-taking Thursday as futures are in a bull flag on the daily bar chart. Technicals remain price supportive and the cash market looks to be steady from a week ago, though movement remains light as packers appear to have near-term needs relatively well covered. Wholesale beef prices have recently stalled, as Choice cutout fell 73 cents to $333.41 Thursday, though Select firmed another $1.34 to $319.38, narrowing the Choice/Select spread to $14.03.
HOGS: Lean hog futures are expected to open lower in a continuation of weakness yesterday. The CME lean hog index is up another 9 cents to $81.91 as of Jan. 15. While that marks the fourth consecutive daily gain, the net advance has only been 76 cents and has lessened each day, concerning traders that a seasonal low may not yet be in place. Pork cutout fell 44 cents to $90.39 Thursday, led lower by losses in hams and bellies. Cutout continues to pull back from last week’s high, by remains $2.56 above the January low.