GRAIN CALLS
Corn: Steady to 2 cents higher.
Soybeans: 2 to 4 cents higher.
Wheat: Steady to 2 cents lower.
GENERAL COMMENTS: Corn and soybeans traded on either side of unchanged overnight though favored the upside into the break. Wheat favored the downside overnight. Outside markets are quiet this morning as front-month crude oil futures continue to consolidate near recent lows while the U.S. dollar index is struggling to build any bullish momentum.
Archer-Daniels-Midland Co. halted loading of grain vessels at U.S. Gulf terminals as the region’s worst snowstorm in 130 years slams the region. The company declared force majeure in southern Louisiana with vessels struggling to navigate the weather conditions, Bloomberg reported Wednesday evening, citing a person familiar with the matter.
China has stopped receiving Brazilian soybean shipments from five firms after cargoes did not meet plant health requirements, according to a statement from the Brazilian government, confirming what we reported on Wednesday. Brazil’s ag ministry said only a small volume of soybeans were affected and the impact on the country’s exports was minimal. “The companies’ units were suspended, but other units of the same companies can continue exporting,” said Luis Rua, the Ministry of Agriculture’s secretary of commerce and international relations.
Canada and Mexico are taking swift action to address concerns raised by President Donald Trump’s recent tariff threats. Both nations are implementing measures to tackle issues related to migration and drug trafficking, aiming to prevent potential economic repercussions. Mexico has intensified its efforts to deter migration and increase seizures of illicit opioids. Canada has bolstered its border patrol resources, deploying two new Blackhawk helicopters and purchasing 60 U.S.-made drones for border surveillance. While it’s unclear if China has taken new steps in response to Trump’s tariff threats, the Chinese government has previously made commitments to stem fentanyl exports and cooperate with the U.S. on narcotics issues and has expressed willingness to engage with the Trump administration. Beijing has avenues to reach a compromise on some of the issues that Trump has raised. For example, China could offer to buy more American agricultural products.
Due to Monday’s government holiday, export sales data for the week ended Jan. 16 will be released on Friday.
CORN: March corn futures traded on either side of unchanged overnight. Bulls are looking to build on strength and challenge yesterday’s high of $4.92 1/4, which is reinforced by resistance at $4.95. Support comes in at $4.80 1/2 then the 10-day moving average at $4.77 1/4.
SOYBEANS: March soybean futures posted modest gains overnight. Bulls are looking to challenge 200-day moving average resistance at $10.67, which is reinforced by yesterday’s high of $10/73 1/2. Support comes in at $10.53 then the 10-day moving average at $10.39 3/4 on a reversal lower.
WHEAT: March SRW futures continued Wednesday’s reversal lower overnight. The 40-day moving average limited losses overnight and will remain support at $5.50 1/4. Additional selling has bears looking to challenge support at $5.45 1/2. Resistance stands at $5.58 1/4 then Wednesday’s high of $5.66 3/4.
LIVESTOCK CALLS
CATTLE: Higher.
HOGS: Choppy/higher.
CATTLE: Live cattle futures and feeders are expected to open higher following Wednesday’s bullish technical breakout on the daily bar chart. Futures continue to be supported by discounts to the cash market, which drove cattle to all-time highs on Wednesday, as nearby futures closed above the $200.00 mark for the first time ever. Cash trade remains fairly light to start the week, with trade taking place in the Southern Plains at steady prices. Wholesale beef prices are pausing near recent highs, with Choice slipping 3 cents to $332.02 and Select sinking $1.56 to $317.99 Wednesday.
HOGS: Lean hog futures are expected to open with a mostly firmer tone, supported by strength in the cash index. The CME lean hog index is up another 26 cents to $81.72 as of Jan. 21, the eighth straight daily gain and the second largest gain in that span. Nearby February futures have traded within last Friday’s range all week, which leaves price action today as key in determining the near-term trend. Pork cutout fell another 65 cents to $90.17 Wednesday, led lower by losses in loins and butts. Movement dropped to 282.71 loads, concerning given the decline in prices.