GRAIN CALLS
Corn: 5 to 7 cents higher.
Soybeans: 7 to 10 cents higher.
Wheat: Winter wheat 11 to 13 cents higher; HRS 9 to 11 cents higher.
GENERAL COMMENTS: Wheat led strength overnight though corn and soybeans showed remarkable strength as well, both surging near the early September highs. Each pulled back modestly from overnight highs into the break. Outside markets are favorable this morning as front-month crude oil futures are posting gains for the third consecutive session and the U.S. dollar index is over 400 points lower.
USDA reported daily export sales of 100,000 MT of soybeans for delivery to China during the 2024-25 marketing year.
Hurricane Francine is expected to dissipate today. However, it continues to produce heavy rainfall across the Delta and Southeast. Lighter rains are expected up into the Ohio River valley. The ports of Cameron, Lake Charles, New Orleans, Plaquemines and St. Bernard have reopened but have restrictions in place, the U.S. Coast Guard said. The Texas Port of Corpus Christi lifted its restrictions and ports in Freeport, Houston and Sabine reopened. Meanwhile, grain export facilities in several locations remain without power, but the North American Export Grain Association and National Grain and Feed Association said there was little major damage based on reports from their members.
As of Sept. 12, low water levels on the Mississippi River have forced barge operators to reduce draft limits and tow sizes, particularly affecting grain shipments, according to USDA’s Grain Transportation Report. Drafts have been cut to 9.5 feet on the Ohio River, 10 feet from St. Louis to Greenville and 10.5 feet from Greenville to the Gulf. Tow sizes are down by 14% to 25%, leading to transit delays of one to two days. Barge groundings are common near Memphis, and 24-hour closures in the Vicksburg District have begun to allow dredging. Although Hurricane Francine’s rain may temporarily relieve low water levels, facilities south of Caro, Illinois, remain closed. Normal operations, including barge flow from the Gulf, may resume soon, depending on hurricane damage.
Romania’s foreign ministry said the attack on a grain ship by Russia was “unprecedented escalation” in its war against Ukraine. Kyiv accused Russia on Thursday of using strategic bombers to strike a civilian grain vessel in a missile attack in neutral Black Sea waters near Romania.
CORN: December corn futures surged above 40-day moving average resistance overnight, which will now mark initial support at $4.07 1/2. A break below that mark would find support at $4.04. Next resistance stands at the Sept. 6 high of $4.16, then $4.20.
SOYBEANS: November soybean futures broke out from downtrend resistance stemming from the Sept. 6 close overnight. Bulls are seeking to hold prices above that line at $10.10, which is reinforced by the 10-day moving average at $10.06 3/4. A close above the 40-day moving average would have bulls seeking to challenge resistance at $10.31 1/4.
WHEAT: December SRW futures traded to the highest mark in two months overnight. Gains stalled at the 100-day moving average at $5.93, which marks initial resistance. Further buying finds resistance at the psychological $6.00 mark. Support comes in at $5.82 3/4 then the 10-day moving average at $5.73.
LIVESTOCK CALLS
CATTLE: Choppy/lower.
HOGS: Choppy/higher.
CATTLE: Live cattle futures and feeders are expected to open with a mostly weaker tone, driven by technical selling. October futures challenged and failed to overcome downtrend resistance stemming from the mid-August high on Thursday. While futures are up this week, cash cattle trade is taking place at roughly steady prices with last week in the Southern Plains, though some feedlots continue to hold out for higher bids. Wholesale beef prices ended Thursday mixed, with Choice cutout falling another 18 cents to $307.18, the sixth consecutive daily decline. Select cutout climbed $1.26 to $295.64.
HOGS: Lean hog futures are expected to open with a mostly firmer tone, as the October contract remains supported by technical buying, keeping the uptrend dating back to early July intact. October lean hogs have sustained persistent selling pressure over the past week and a half, but prices seemingly reached a bottom midweek upon challenging the 40-day moving average, which should help support prices today. The CME lean hog index is down another 11 cents to $85.35 as of Sept. 11. Pork cutout climbed $1.27 to $94.18 Thursday, led by gains in bellies, hams and loins. Movement remained quite strong at 340.56 loads.