GRAIN CALLS
Corn: Steady to 2 cents higher.
Soybeans: 5 to 7 cents lower.
Wheat: SRW 2 to 4 cents lower; HRW 3 to 5 cents lower; HRS steady to 2 cents lower.
GENERAL COMMENTS: Soybeans led weakness overnight with wheat following to the downside. Corn futures favored the upside but faded to just fractionally higher into the break. Front-month crude oil futures continue to trade near recent lows despite risk assets favoring the upside over the past week. The U.S. dollar index is modestly higher this morning.
USDA reported daily sales of 110,000 MT of corn for delivery to Portugal during the 2024-25 marketing year.
National Economic Council Director Kevin Hassett revealed that the U.S. has received “more than 10” substantial trade offers from foreign governments seeking new agreements with Washington. Hassett called the proposals “very good, amazing offers” and pointed to accelerating momentum in global trade talks under President Donald Trump’s administration. After the announcement of a 90-day pause on “reciprocal” tariffs, Hassett and other administration officials stated that 130 countries are now actively negotiating potential trade deals or tariff arrangements with the United States. The administration is weighing whether to finalize deals individually or announce them as a comprehensive package, according to Hassett. The U.S. Trade Representative’s office and the Commerce Department are currently reviewing the details of each offer for economic and strategic viability. Media reports signal the Trump administration is initially focusing on potential trade agreements with Japan, South Korea, India, Australia, the United Kingdom and Vietnam.
China has ordered its airlines not to take any further deliveries of Boeing jets in response to the U.S. decision to impose 145% tariffs on Chinese goods, Bloomberg reported on Tuesday, citing people familiar with the matter. Beijing has also asked that Chinese carriers halt purchases of aircraft-related equipment and parts from U.S. companies. There are currently no plans for direct talks between President Trump and Chinese President Xi Jinping. Both sides are waiting for the other to make the first move toward de-escalation. Trump continues to express optimism that talks will eventually occur, but for now, the standoff remains, with no concrete plans for leader-level negotiations.
USDA rated the winter wheat crop 47% “good” to “excellent” and 19% “poor” to “very poor.” On the weighted Pro Farmer Crop Condition Index (0 to 500-point scale, with 500 being perfect), the HRW crop dropped 5.6 points to 319.2, led by a 3-point decline in top producer Kansas. The SRW crop improved 3.8 points to 370.1. Ratings for both crops remain well below year-ago, with HRW down 17.8 points and SRW down 12.0 points.
CORN: May corn futures traded modestly higher overnight. Bulls are looking to overcome resistance at $4.90 1/4 on continued strength. Support comes in at $4.85 then $4.81 in a continuation of yesterday’s profit-taking.
SOYBEANS: May soybean futures led overnight weakness. Continued selling eyes support at $10.31, the 100-day moving average, then $10.25. Bulls are seeking to tackle resistance at $10.42 3/4 then the psychological $10.50 mark on resurgent strength.
WHEAT: May SRW futures saw modest follow-through selling overnight. Selling efforts stalled near the 20-day moving average at $5.45 1/4, continued weakness below that mark would be a bearish omen for prices. Support comes in at $5.38. Bulls are eyeing resistance at $5.50 then the 40-day moving average at $5.52.
LIVESTOCK CALLS
CATTLE: Choppy/lower.
HOGS: Choppy/lower.
CATTLE: Live cattle futures and feeders are expected to open with a mostly weaker tone as technical resistance is likely to spur selling pressure. June futures ended Monday at resistance which is likely to encourage sellers today, though if bulls are able to break prices above the psychological $200.00 mark, it would indicate a significant technical shift in the marketplace. Packers continue to slow slaughters in an effort to manage margins that remain deep in the red. Wholesale beef climbed Monday as Choice cutout firmed $1.41 to $335.63 while Select climbed $1.89 to $315.85.
HOGS: Lean hog futures are expected to open with a mostly weaker tone as a sinking cash market is likely to weigh on prices. The CME lean hog index is down another 86 cents to $86.00 as of April 11, the eighth straight daily decline. June futures closed near technical resistance on Monday, which could entice technical sellers as well. Cutout inched 82 cents higher to $92.78 yesterday, led by strength in bellies, while movement slowed to a disappointing 235.01 loads.