GRAIN CALLS
Corn: 1 to 3 cents lower.
Soybeans: 5 to 7 cents lower.
Wheat: SRW 1 cent lower to 1 cent higher; HRW 2 to 4 cents lower; HRS 4 to 6 cents lower.
GENERAL COMMENTS: Soybeans led the way lower overnight while corn and wheat followed modestly to the downside. Soybeans continue to weigh heavily on the ag complex. Outside markets are mixed this morning as front-month crude oil futures continue to march higher and the U.S. dollar index is over 600 points higher and on 1 and-a-half-month highs.
USDA reported daily export sales of 155,000 MT of corn for delivery to Mexico and 172,500 MT of soybeans for delivery to unknown destinations during the 2024-25 marketing year.
Brazil’s soybean planting reached 4.5% as of last Thursday, according to AgRural, less than half of last year’s 10% pace on that date. Planting in Mato Grosso is the slowest since 2015-16 due to dry soils. First crop corn planting reached 37%, in line with year-ago.
Hurricane Milton will bring damaging wind and flooding rain to central Florida during the middle of this week. Milton is much smaller in size relative to Helene, but it is expected grow as it approaches Florida. World Weather Inc. says Milton will come and go quickly, which may help reduce the duration of the most damaging conditions. Damage to Florida’s citrus crop will be due more to excessive winds than rainfall.
The central U.S. will remain dry over the next week, while temps will run above normal. Brazil’s center-west and center-south crop areas will see slowly improving shower activity, but resulting rainfall won’t reverse the dry pattern. Argentina will be wetter in the north half to two-thirds of the nation during the next 10 days.
A Russian missile strike damaged a civilian Saint Kitts and Nevis-flagged vessel loaded with corn in Ukrainian port of Pivdennyi on Sunday, the Ukrainian restoration ministry said. The 15 crew members were not injured. This is the third Russian attack on a civilian vessel in the Black Sea region in a month.
CORN: December corn futures traded modestly lower overnight. Initial support comes in at $4.21 3/4, which limited most of the downside overnight, while additional selling finds support at $4.18 1/4. Resistance comes in at the psychological $4.25 mark then the for-the-move high close at $4.31 3/4.
SOYBEANS: November soybean futures saw relative weakness overnight. The 40-day moving average marks initial support at $10.28, which is reinforced by the psychological $10.25 mark, then $10.10. resistance comes in at $10.40 1/4 then downtrend line resistance at $10.47 1/2.
WHEAT: December SRW futures saw modest profit-taking early overnight, though rebounded into the break. Bulls are seeking to maintain support at $5.84, which is reinforced by the 40-day moving average at $5.78 3/4. Prices are threatening a 1-and-a-half-month uptrend. Resistance stems from $5.96 1/4 then the psychological $6.00 mark.
LIVESTOCK CALLS
CATTLE: Higher.
HOGS: Choppy/higher.
CATTLE: Live cattle futures and feeders are expected to open higher on continued strength in the cash cattle market. Cash cattle prices are poised to climb for the fourth consecutive week, though the official price for last week won’t be known until late this morning. Wholesale beef prices have lagged, pushing packer margins deeper into the red, which could leave packers hesitant to raise bids again this week, though feedlots won’t be in any hurry to move cattle at lower prices. Choice cutout climbed $2.78 Friday to $302.58 while Select surged $4.32 higher to $287.61.
HOGS: Lean hog futures are expected to open with a mostly firmer tone , building on recent technical strength. December futures surged last week before consolidating, resetting overbought conditions on the daily bar chart. Meanwhile, the CME lean hog index is down 7 cents to $84.83 as of Oct. 3, ending a three-day rise, which could spark profit-taking. Pork cutout ended Friday down 49 cents to $94.31, led lower by butts and picnics.