Corn futures are a penny to 4 cents higher at midmorning.
- Corn futures are notching gains for the fifth straight session amid outside market support.
- USDA’s monthly Supply & Demand Report at 11:00 a.m. CT will consider trade policies currently in place at the time of publication and assume those will remain throughout the forecast time period. Analysts expect U.S. ending stocks of 1.516 billion bu. for corn (1.540 billion bu. in February). Modest adjustments are also expected for global ending stocks forecasts. Full pre-report expectations.
- South American crop consultant Dr. Michael Cordonnier maintained his corn crop forecasts for Brazil and Argentina at 123 MMT and 46 MMT, respectively. He did note, near-term rains must continue, or he will start lowering his Brazilian corn crop outlook.
- Overnight, South Korea purchased 133,000 MT of corn expected to be sourced from the U.S., South America or South Africa.
- China’s ag ministry continued to forecast corn imports will decline 14.41 MMT (61.6%) to 9 MMT.
- May corn futures are facing resistance at $4.79 1/4, while support lies at the 10-day moving average of $4.61 1/4.
Soybeans are a penny to 3 cents higher. Soymeal futures are modestly weaker and soyoil is slightly higher in light and choppy trade.
- Soybean futures are being supported by corn and outside markets, though technical resistance is curbing a move higher.
- Analysts expect soybean ending stocks of 379 million bu. in today’s monthly Supply & Demand Report, down modestly from 380 million bu. in February.
- Cordonnier kept his Brazilian and Argentine soybean crop forecasts at 170 MMT and 48 MMT, respectively. Cordonnier noted weather in Argentina has improved significantly, stabilizing crops.
- While India’s palm oil imports rose 35.7% from the previous month to 373,549 MT in February, according to the Solvent Extractors’ Association of India, soyoil and sunflower oil imports fell 36% and 20.8%, respectively. Total edible oil imports dropped 12% to 899,565 MT, the lowest since February 2021.
- China’s ag ministry made no changes to its 2024-25 estimates for production or imports for soybeans this month. It forecasts soybean imports will decline 10.15 MMT (9.7%) to 94.6 MMT.
- May soybean futures are facing resistance at the 10-day moving average of $10.21 1/2, while initial support lies at $10.06 1/2.
Wheat futures are 2 to 6 cents lower, led by losses in HRS contracts.
- Wheat futures are posting modest losses, despite heavy losses in the U.S. dollar index.
- USDA is expected to report wheat ending stocks at 797 million bu. in today’s Supply & Demand Report, which would be up slightly from February’s 794 million bu.
- Grain trade association Coceral cut its forecast of soft wheat production in the European Union and Britain this year, citing lower-than-anticipated plantings in France and Britain. Coceral now forecasts the 2025 soft wheat crop in the EU and Britain totaling 137.2 MMT, down from an initial projection of 140.4 MMT in December, though well above last year’s rain-hit production of 125.1 MMT.
- May SRW futures are trading within Monday’s range and above the 10-day moving average of $5.55 1/2. Resistance is at $5.67 3/4 while the 10-day average is limiting seller interest.
Live cattle and feeders are modestly lower at midmorning.
- Nearby live cattle are weaker as traders pause following recent strong gains.
- The average cash cattle price firmed $2.63 to $200.28 last week, ending a four-week decline.
- Wholesale beef prices rose $2.68 to $317.58 for Choice and $1.15 to $306.95 for Select on Monday.
- April live cattle are being limited by resistance at $201.62, while initial support lies at $199.57.
Hog futures are moderately to sharply lower at midsession.
- Nearby lean hogs are pulling back from recent gains amid weakening cash fundamentals.
- The CME lean hog index is down another 19 cents to $89.71 as of March 7, marking the fourth straight daily decline.
- The pork cutout slipped 14 cents to $98.22 on Monday, led by primal bellies and ribs.
- April lean hogs continue to face resistance at the 20- and 100-day moving averages, each trading at $88.16 and $88.68, while support lies at $86.375.