Corn futures are 2 to 3 cents lower at midmorning.
- Corn futures have bounced off their session low, though spillover weakness from wheat continues to provide pressure.
- India has offered tariff cuts on key U.S. agricultural imports as part of ongoing negotiations aimed at preventing reciprocal tariffs from the U.S. set to take effect next week. The offer came during high-level meetings in New Delhi with Brendan Lynch, Assistant U.S. Trade Representative for South and Central Asia. New Delhi is considering lower duties on DDGs but is resisting reductions for corn.
- Overnight, South Korea purchased 130,000 MT of corn to be sourced from the U.S., South America or South Africa.
- Support for May corn futures is at $4.42, while resistance starts at $4.50.
Soybeans are a penny to 3 cents lower, while soymeal futures are around $2.00 lower. Soyoil is mostly 30 points higher.
- Soybean futures are being led lower by soymeal and improving global supply prospects.
- China’s soybean imports during the first three months of this year are expected to total just 13.6 MMT, down 5.2 MMT from the same period last year and a record low for the quarter, an executive at Yihai Kerry Arawana Holdings Co Ltd said. However, imports are forecast to rebound to 35 MMT in the second quarter.
- Brazil is expected to produce 172.1 MMT of soybeans this year, Agroconsult forecast after a nationwide crop tour of 13 states that began in January. The new estimate is 800,000 MT higher than its previous forecast.
- Argentine farmers had sold 8.4 MMT of soybeans from this year’s production as of March 19, equivalent to between 17.3% and 18.1% of the expected harvest. That marked the slowest pace since the 2014-15 season when 15.7% of the soy harvest was sold at the same time of the year.
- May soybean futures found support at the 10-day moving average of $10.09, while resistance is at Thursday’s high of $10.17 3/4.
SRW wheat futures are mostly a dime lower, while HRW futures are 16 to 18 cents lower. HRS wheat is 9 to 13 cents lower.
- Wheat futures are notably lower despite a weaker U.S. dollar.
- Today’s European forecast model run was too wet for HRW wheat areas in the U.S. Plains during the second week of the forecast and is not likely to verify, according to World Weather Inc. A drier bias is far more likely in the southwest half of the production region while some rain will fall and northern and eastern areas briefly next week.
- France’s ag ministry rated the country’s soft wheat crop as 74% good/excellent as of March 24, unchanged from the previous week. Aside from 2024’s 66% rating, these are the worst conditions in the past five years.
- May SRW futures fell to a new contract low of $5.17 1/2, with next support at $5.15 3/4. Resistance is layered at $5.21 1/4, $5.26 1/2 and $5.31 3/4.
Live cattle and feeders are posting slight to moderate losses at midmorning.
- Nearby live cattle are weaker in corrective trade, though solid technical and fundamental support are limiting selling interest.
- China has not renewed export registrations for U.S. beef facilities that expired on March 16, though it updated registrations for pork and poultry plants, Reuters reported, citing traders and the U.S. Meat Export Federation.
- Choice boxed beef prices fell $2.58 to $335.72, while Select rose $2.91 to $319.44, narrowing the Choice/Select spread to $16.28. Movement totaled 117 for the day.
- April live cattle are trading within Thursday’s upper range, with resistance standing at $209.925, while initial support lies at $208.33.
Hog futures are mixed at midsession.
- Nearby lean hogs are under pressure despite discounts to the cash index.
- USDA estimated the U.S. hog herd at 74.512 million head as of March 1, down 179,000 head (0.2%) from year-ago, whereas traders expected a 1.2% increase. The breeding herd at 5.980 million head declined 0.6%. The market hog inventory at 68.532 million head dropped 144,000 head (0.2%). The winter pig crop declined 0.2% and producers intend to farrow slightly fewer sows during spring (-0.2%) and summer (-0.8%). Full details.
- Pork cutout dropped 81 cents to $94.84 on Thursday, as declines in bellies, butts and picnics more than offset gains in the other cuts. After topping the $100.00 mark Tuesday morning, cutout has dropped roughly $5.00.
- China’s sow herd totaled 40.7 million head at the end of February, up 0.6% from year-ago, according to data from the ag ministry. Hog slaughter rose 2.8% to 59.9 million head during the first two months of this year.
- April lean hogs are facing resistance at $87.69, while support is at the 10-day moving average of $86.66.