GRAIN CALLS
Corn: Steady to 2 cents higher.
Soybeans: 3 to 5 cents higher.
Wheat: Winter wheat steady to 2 cents lower; HRS steady to 2 cents higher.
GENERAL COMMENTS: Corn, soybeans and wheat each saw muted price action overnight but each saw an increase in buying interest going into the break. Markets seem to be a little more immune to ceaseless tariff talks. Outside markets are mixed this morning as front-month crude oil futures continue to work higher while the U.S. dollar index is around 150 points higher.
U.S. tariffs on copper imports could be coming within several weeks, months earlier than the deadline for a decision, people familiar with the situation told Bloomberg. President Donald Trump in February directed the Commerce Department to open an investigation into potential copper tariffs and submit a report within 270 days, though it’s now expected to be resolved sooner, said the people. Trump has threatened to impose a duty of as much as a 25% on all copper imports. The news fueled copper futures to an all-time high.
President Trump said he plans to limit exceptions to the planned April 2 reciprocal tariffs on global trading partners. “I know there are some exceptions, and it’s an ongoing discussion, but not too many, not too many exceptions,” Trump said in an interview with Newsmax. “No, I don’t want to have too many exceptions.” Trump has promised a sweeping tariff announcement next Wednesday, touting it as a “Liberation Day” against trading partners he has long accused of “ripping off” the United States.
China is running a trade surplus the world economy can’t “live with,” former President Bill Clinton’s top trade official Charlene Barshefsky said in an interview with Bloomberg Television. “China is exploiting manufacturing, suppressing domestic consumption, and expects that the world can live with a trillion dollar Chinese trade surplus, which most certainly the world cannot.” Barshefsky, who negotiated the terms of China’s accession to the World Trade Organization more than two decades ago, said that agreement was “absolutely not” a mistake. However, China’s convergence toward “market-based norms” has reversed course as domestic reforms stalled, she said. It leaned increasingly on investment in manufacturing to drive growth and began to flood the market with exports. That’s “not what the world needs — we don’t have a supply problem in the world, we have a demand problem,” she said.
CORN: May corn futures traded in a narrow range overnight. Resistance stands at $4.58 3/4 then the 10-day moving average at $4.62 1/2. Bulls are seeking to hold support tat $4.55 1/4 then the psychological $4.50 mark on extended selling pressure.
SOYBEANS: May soybean futures saw modest strength overnight. Bulls are looking to close prices above stiff resistance at $10.09 1/4, the 10-day moving average, which has capped nearly all gains since mid-February. Support comes in at the psychological $10.00 mark then $9.91.
WHEAT: May SRW futures continue to consolidate near recent lows. Stiff support lies around $5.35 and is reinforced by the contract low of $5.30. Bulls are seeking to overcome resistance at $5.46 1/2, which is reinforced by 10-day moving average resistance at $5.53
LIVESTOCK CALLS
CATTLE: Higher.
HOGS: Choppy/higher.
CATTLE: Live cattle futures and feeders are expected to open higher on continued cash fundamental strength. June live cattle futures found buyers on the drop below the prior contract high from late January on Tuesday, fueling a rebound and a high-range close. Futures continue to trade well below the cash market, which is likely to support futures in the near term. Choice cutout surged $8.09 to $335.19 on Tuesday, continuing the recent price climb. Select rose 47 cents to $314.05. Despite the jump in cutout, packer margins remain deep in the red as gains in wholesale beef have been more than offset by record cash prices.
HOGS: Lean hog futures are expected to open with a mostly firmer tone, supported by modest strength in cash fundamentals. The CME lean hog index is up 11 cents to $88.90 as of March 24, supported by recent strength in pork cutout. Cutout rose 18 cents to $97.55 Tuesday, though that is a far cry from the midsession quote over $100.00. Strength in bellies led cutout higher. While the overall price gain was not terribly impressive, yesterday’s movement surged to 375.51 loads, indicating robust demand for pork.