GRAIN CALLS
Corn: 3 to 5 cents higher.
Soybeans: 5 to 7 cents higher.
Wheat: Winter wheat steady to 2 cents higher; HRS 2 to 4 cents higher.
GENERAL COMMENTS: Soybeans led strength overnight with corn and wheat following modestly to the upside. A higher dollar did little to limit trader optimism overnight, as the U.S. dollar index rose to a more than 2-year high. Front-month crude oil futures saw early strength last night but are trading modestly lower this morning.
USDA reported daily sales of 198,000 MT of soybeans for delivery to unknown destinations during the 2024-25 marketing year.
China is willing to conduct active dialogue with the United States based on the principles of mutual respect and promote the development of bilateral economic and trade relations, vice commerce minister Wang Shouwen said. China is also willing to “expand areas of cooperation and manage differences” with Washington. Wang, also China’s International Trade Representative, said China would be able to “resolve and resist” the impact of external shocks, responding to a question about the impact of potential tariffs from U.S. President-elect Donald Trump.
The Biden administration plans to add 29 Chinese companies to a blacklist for alleged links to forced labor in the Xinjiang region, marking the largest expansion of the ban list since its implementation in 2022. This move will increase the total number of banned entities to over 100. Most of the newly targeted companies operate in the agricultural sector, but the blacklist also includes entities from industries like mining and smelting of metals such as aluminum and lithium.
Republicans are scrutinizing President Joe Biden’s nearly $99 billion supplemental disaster aid request following Hurricanes Helene and Milton. While generally supportive of aid, lawmakers, including Rep. Tom Cole (R-Okla.), expressed concerns about non-disaster-related provisions, such as education and climate change initiatives, included in the proposal. Cole emphasized that Democrats, controlling the White House, remain key players in negotiating the final package. Of note: Some farm-state lawmakers may want to add policy-related language to the disaster measure that would boost reference prices and some crop insurance incentives. Those policy changes could find their way into a stopgap spending bill into March that is expected to be approved sometime in December.
CORN: March corn futures rebounded overnight. Initial resistance stand from this week’s high close of $4.40, which is quickly reinforced by downtrend resistance at $4.42. Support lies at the 20-day moving average at $4.35 1/2 then $4.33.
SOYBEANS: January soybean futures saw corrective strength overnight. Initial resistance stands at $9.87 1/2 then the 10-day moving average at $9.94 1/2. Support comes in at $9.79 then the contract low of $9.73 1/2.
WHEAT: March SRW futures traded on either side of unchanged overnight. Stiff resistance stands at $5.72 with strength above that mark targeting the 20-day moving average at $5.76 1/4. Support comes in at the overnight low of $5.65 1/2 then $5.56 1/2.
LIVESTOCK CALLS
CATTLE: Choppy/lower.
HOGS: Choppy/lower.
CATTLE: Live cattle future and feeders are expected to open with a mostly weaker tone as December futures continue to consolidate following Tuesday’s surge higher. Cash trade has remained light through Thursday, with minimal trade taking place at roughly steady prices. USDA will release its monthly Cattle on Feed Report after the close, which is expected to show feedlot inventory down slightly from year-ago, placements up 3.8% and marketings up 5.2% from year-ago. Wholesale beef values firmed Thursday, with Choice rising 40 cents to $306.79 and Select climbing $1.93 to $272.92.
HOGS: Lean hogs are expected to open with a mostly weaker tone as technical selling is likely to resurface in December futures, which butted up against downtrend resistance stemming from the late October highs late in the session Thursday. The CME lean hog index is down another 39 cents to $87.44 as of Nov. 20. Steeper-than-normal discounts to the cash index could limit selling interest as December futures finished Thursday $6.64 below today’s cash quote. The five-year average decline from now until mid-December is $3.20. Pork cutout dropped another $1.53 to $93.07 Thursday, the lowest mark since Sept. 11. Losses in picnics and bellies led cutout lower.