GRAIN CALLS
Corn: 1 cent lower to 1 cent higher.
Soybeans: 2 to 4 cents higher.
Wheat: SRW 3 to 5 cents higher; SRW 4 to 6 cents higher; HRS 1 to 3 cents higher.
GENERAL COMMENTS: Corn, soybeans and wheat each faced profit-taking early in the overnight session before turning higher into the break, with wheat leading the way. Outside markets had little influence over the ag complex overnight as front-month crude oil futures and the dollar index both traded around unchanged, consolidating near recent moves.
USDA reported daily sales of 136,000 MT of corn for delivery to unknown destinations during the 2024-25 marketing year.
President Donald Trump said his administration was discussing a 10% punitive duty on Chinese imports because fentanyl is being sent to the U.S. via Mexico and Canada and said the EU also has troubling trade surpluses with the United States. His latest comments underscored Trump’s longstanding desire for broader duties and a new Feb. 1 deadline for 25% tariffs against Canada and Mexico, as well as duties on China and the EU. China said it was willing to maintain communication with the U.S. to “properly handle differences and expand mutually beneficial cooperation.” It sought to promote stable and sustainable ties with the U.S., the foreign ministry said. Trump signed a trade memorandum ordering federal agencies to complete detailed reviews of several trade issues by April 1.
Trump is pushing for an early renegotiation of the U.S.-Mexico-Canada Agreement (USMCA), set for statutory review in 2026, by threatening to impose 25% tariffs on imports from Canada and Mexico as soon as Feb. 1. His administration aims to revise automotive rules to encourage U.S. manufacturing and address broader trade issues, the Wall Street Journal reported. Canadian officials are mulling retaliatory tariffs on up to $150 billion of U.S. products, depending on what Trump does. Canada has also threatened to add an export tax on the 4 million barrels a day of oil it sends to U.S. refiners, which could ultimately boost the cost of gasoline to U.S. customers. Mexican President Claudia Sheinbaum said she would emphasize Mexico’s sovereignty and independence and would respond to U.S. actions “step by step.”
China has stopped receiving Brazilian soybean shipments from five firms after cargoes did not meet phytosanitary requirements, two sources with direct knowledge of the matter told Reuters. From Jan. 8, shipments to China were suspended from Terra Roxa Comercio de Cereais, Olam Brasil and C.Vale Cooperativa Agroindustrial. On Jan. 14, Chinese customs suspended shipments from Cargill Agricola S A and ADM do Brasil. There were concerns after some cargoes had been found with chemical contamination, pests or insects, sources said. It was not clear how long the suspension would last, although traders said they expect it to be short-term.
CORN: March corn futures saw some profit-taking overnight. Bulls are targeting yesterday’s high of $4.90 1/2 before tackling resistance at $4.95. Support lies at $4.82 1/2 then the 10-day moving average at $4.76 3/4 on additional profit-taking.
SOYBEANS: March soybean futures saw an increase in buying pressure late in the overnight session. Bulls are looking to overcome 200-day moving average resistance at $10.67 1/4, while additional strength targets the psychological $10.75 mark. Support lies at $10.56 3/4 then $10.50 on a reversal lower.
WHEAT: March SRW futures favored the upside late in the overnight session. Resistance stands at $5.63 1/4 then the 100-day moving average at $5.70. Support comes in at $5.58 3/4 then the psychological $5.50 mark on a reversal lower.
LIVESTOCK CALLS
CATTLE: Choppy/higher.
HOGS: Mixed.
CATTLE: Live cattle futures and feeders are expected to open with a mostly firmer tone, supported by technical buying and continued strength in the cash cattle market. Cash cattle trade had a light start in Kansas at steady prices with a week ago. Recent hefty purchases and Friday’s Cattle on Feed Report are likely to push most cash trade late into the week this week. Wholesale beef prices were mixed on Tuesday, with Choice falling $1.11 to $332.05, while Select rose 11 cents to $319.55. Beef cutout prices have stalled recently, pressing packer margins deeper into the red.
HOGS: Lean hog futures are expected to open with a mixed tone, with choppy price action likely. Bulls failed to maintain yesterday’s gap higher on the open, but prices struggled to break below last Friday’s low. February futures finished Tuesday below the most recent quote for the CME lean hog index, which is up another 6 cents to $81.46 as of Jan 20, the seventh straight daily gain. While the technical posture favors bears, cash fundamentals are supportive and could spur strength. Pork cutout fell $1.49 to $90.82 Tuesday, with losses in all cuts except bellies.