GRAIN CALLS
Corn: 4 to 6 cents higher.
Soybeans: 4 to 7 cents higher.
Wheat: Winter wheat 8 to 10 cents higher; HRS 5 to 7 cents higher.
GENERAL COMMENTS: Corn and wheat led overnight strength as Lutnick says U.S. may walk back tariffs on Mexico, the top buyer of U.S. corn and wheat. Soybeans saw corrective strength overnight as well to a lesser extent. Outside markets are mixed this morning as front-month crude oil futures are trading near recent lows while the U.S. dollar index is around 900 points lower and near four-month lows.
The Trump administration may announce a path to tariffs relief for Mexican and Canadian goods as soon as today, according to Commerce Secretary Howard Lutnick. While President Donald Trump is not expected to fully roll back the tariffs tied to the flow of fentanyl and migrants into the U.S., a compromise could see reduced tariffs if Canada and Mexico meet certain trade conditions. Lutnick emphasized that any relief would be contingent on adherence to the rules of the U.S.-Mexico-Canada Agreement (USMCA), stating, “If you live under those rules, then the president is considering giving you relief.” Lawmakers on Capitol Hill, including some of Trump’s allies, urged the administration to reconsider the tariffs, warning of potential impacts on American consumers and industries.
President Donald Trump addressed a joint session of Congress Tuesday evening, marking his first speech to lawmakers since returning to office on Jan. 20. He defended his newly enacted tariffs on Canada and Mexico, along with doubling of tariffs on China. Trump highlighted his administration’s economic and policy achievements, efforts to curb illegal immigration and increase border security and efforts to reshape the federal government. We’ll have further details in “Evening Report.”
A consortium of investors led by BlackRock agreed to buy majority stakes in ports on either end of the Panama Canal, putting U.S. firms in control of two ports that President Trump raised as a security concern because of their connection to China. The deal with Hong Kong-based CK Hutchison is worth $22.8 billion. It includes Hong Kong-based CK Hutchison’s 90% ownership of Panama’s Balboa and Cristóbal ports, strengthening U.S. influence over this critical trade route amid concerns about Chinese involvement.
CORN: May corn futures bounced overnight. Bulls are looking to overcome the overnight high of $4.60 1/2, which sees little backing until $4.67 1/4. Support stems from the psychological $4.50 mark then yesterday’s low of $4.42 1/2.
SOYBEANS: May soybean futures saw modest corrective gains overnight. Resistance stands at $10.11 1/4 then the overnight high of $10.15. Support comes in at the psychological $10.00 mark then yesterday’s low of $9.91 on resurgent selling pressure.
WHEAT: May SRW futures made up most of Tuesday’s loss overnight. Initial resistance stems from the psychological $5.50 mark and is reinforced by resistance at $5.64 3/4. Support comes in at $5.37 3/4 then yesterday’s contract low of $5.30.
LIVESTOCK CALLS
CATTLE: Higher.
HOGS: Higher.
CATTLE: Live cattle futures and feeders are expected to open higher, reflecting an overall improved risk tone in the marketplace. Fats showed impressive strength off fresh for-the-move lows in the latter portion of yesterday’s session, which is likely to followthrough in today’s trade as futures remain at a steep discount to the cash market. Still, poor packer margins are causing cutbacks in slaughter rates and high prices are limiting beef demand, so a close eye will be on the cash market as trade develops this week. Wholesale beef ended Tuesday higher as Choice climbed 92 cents to $314.85 while Select rose $1.61 to $304.02.
HOGS: Lean hog futures are expected to open higher, supported by steep discounts to the cash market. After making a fresh low yesterday morning, April lean hog futures rebounded and closed well off session lows. The CME lean hog index continues to see choppy action, rising 28 cents to $90.22 as of March 3, though that marks the third consecutive daily gain. The recent bounce towards $100.00 in pork cutout has supported packer margins, encouraging firmer cash hog prices, but resistance in pushing above that mark could limit strength in the coming days as cutout fell $2.02 on Tuesday to $97.77, as all cuts posted losses except picnics.