Note: Due to Friday’s limit-down performances, CME Group livestock futures will have expanded trading limits today. The expanded limits will be $9.75 for live cattle, $12.25 for feeders and $6.00 for lean hogs.
Corn futures around a penny lower at midmorning.
- Corn futures are pivoting around unchanged as corrective buying is limited.
- U.S. flooding was widespread from the lower Ohio River Basin through portions of the Tennessee River Basin and into the lower Mississippi River Basin, states World Weather Inc.
- USDA reported corn export inspections of 1.58 MMT (62.3 million bu.) during the week ended April 4, down 64,079 MT from the previous week but within the pre-report range of expectations from 1.0 MMT to 1.6 MMT.
- May corn futures are edging closer to the 100-day moving average of $4.68 3/4, where resistance stands, while support remains at the 200-day moving average of $4.53 1/4.
Soybeans are a penny to 4 cents higher, while soymeal futures are around $3.00 higher. Soyoil is around 75 points lower.
- Soybean futures are posting corrective gains amid support from soymeal.
- USDA reported soybean export inspections of 804,270 MT (29.6 million bu.) during the week ended April 4, down 8,799 MT from the previous week but near the upper end of pre-report expectations from 300,000 to 850,000 MT.
- Argentine conglomerate Vicentin shut down activity at its soybean crushing plants due to lack of contracts amid its bankruptcy proceedings, the company said Saturday. Vicentin, in bankruptcy proceedings since 2020, added that it aims to reverse the shutdown once the uncertainty of the judicial process is resolved.
- China will explore the production potential of oilseed crops such as rapeseed and peanuts as part of a government action plan to strengthen the country’s agricultural industry.
- May soybeans are being limited by resistance at the psychological $10.00 area, while support is layered from $9.60 1/2 and the Dec. 16 low of $9.55 1/2.
Wheat futures are 7 to 10 cents higher.
- Wheat futures are posting short-covering gains amid heightened supply concerns in the wake of weekend flooding in SRW wheat country and hard freezes in HRW wheat areas.
- USDA reported wheat export inspections of 334,888 MT (12.3 million bu.) for the week ended April 4, down 166,621 MT from the previous week but within pre-report expectations from 300,000 to 500,000 MT.
- Hard freezes occurred in the U.S. HRW wheat production region Sunday morning, causing some minor damage to wheat, though wheat conditions have also been negatively impacted by dryness in unirrigated fields and some wind damage, according to World Weather.
- May SRW futures have extended above the 10-day moving average, with resistance now at the 20-day moving average of $5.47 3/4. Initial support lies at $5.19 3/4.
Live cattle and feeders are sharply lower at midsession.
- Nearby live cattle gapped lower at the open after a limit-down close on Friday. Futures have worked off their earlier lows but remain decidedly lower.
- Both fats and feeders are now trading at steep discounts to their respective cash markets, which could limit further selling pressure.
- Wholesale beef values were mixed on Friday, with Choice up 8 cents to $338.45, while Select fell 66 cents to $317.18. Movement totaled 102 loads.
- April live cattle are pivoting around the 40-day moving average of $200.71, which is backed by support at $199.29. Resistance stands at Friday’s low of $202.55.
Hog futures are mostly lower at midmorning.
- Nearby lean hogs are pivoting around unchanged. Deferred contracts are moderately to sharply lower.
- The pork cutout value rose $1.43 on Friday to $95.77, led by gains in primal bellies and hams. Movement totaled 268.9 loads.
- The CME lean hog index is down 36 cents to $88.36 as of April 3, which marked a new for-the-move low.
- April lean hogs are testing resistance at $87.90, while the 10-day moving average of $87.30 continues to provide support.