Corn futures are a penny to 3 cents firmer at midmorning.
- Corn futures are correctively higher for the third straight session as rebounding crude oil and extended U.S. dollar weakness lend support.
- President Donald Trump in an interview Friday suggested that tariffs on Mexico and Canada could rise above the stated 25%. While he paused tariffs until April 2 for goods under the USMCA agreement, Trump hinted that higher tariffs might still come, stating, “The tariffs could go up as time goes by.”
- World Weather Inc. notes Mato Grosso and nearby areas of Brazil should encounter periodic rainfall that will be ideal for long-term crop development. The forecaster reports safrinha corn planting should be winding down.
- May corn futures are trading within Thursday’s broad range, with the 10-day moving average of $4.72 3/4 serving as initial resistance, while support lies at the 200-day moving average of $4.56 1/4.
Soybeans are mostly 1 to 5 cents higher, with new-crop contracts leading gains. Soymeal futures are around 30 cents lower and soyoil is 50 points higher.
- Soybean futures are modestly firmer as technical resistance curbs heftier short-covering efforts.
- China imported 13.61 MMT of soybeans during the first two months of this year, up 570,000 MT (4.4%) from the same period last year, as importers brought in U.S. supplies before an anticipated trade disruption.
- U.S. soyoil exports surged to 212,714 MT in January, according to Census Bureau data, the most for any month since January 2010 and the fourth largest tally for any month on record. Global importers have increasingly turned to soyoil given its competitive price advantage over rival vegoils, especially palm oil.
- May soybean futures are facing resistance at the 100-day moving average, currently trading around $10.29, while support lies at $10.15 1/4.
Wheat futures are mostly 4 to 5 cents lower.
- SRW wheat futures are weaker amid lingering caution due to heightened trade uncertainty and volatility.
- Another round of significant warming is coming to the U.S. Plains over the next several days followed by cooling, World Weather said. Winer crop conditions are unlikely to change much, though there is still a need for greater precip over much of the region.
- As of March 3, France’s ag ministry rated the country’s winter wheat crop as 74% good/excellent, up one percentage point from the previous week. However, that was the second lowest in the last five years ahead of only 68% on this date last year.
- May SRW futures are holding an inside range, with pressure stemming from the 10-day moving average of $5.60 1/2, while support lies at $5.45 1/4 and $5.36 1/4.
Live cattle and feeders are sharply higher at midmorning.
- Nearby live cattle are extending gains amid a strong technical rebound.
- Cash cattle trade was light through Thursday, with prices generally $1.00 lower. Feedlots appear to be in no hurry to actively move cattle at lower prices after slow sales last week.
- Choice boxed beef slipped 42 cents on Thursday to $313.12, while Select rose 98 cents to $303.51, narrowing the Choice/Select spread to $9.61. Movement totaled 122 loads.
- April live cattle have surged above the 40-day moving average of $197.83, with resistance now around $200.00.
Hog futures are firmer, with the strongest gains in deferred contracts.
- Nearby lean hogs are firmer though buyer interest in more restricted than in deferred contracts.
- The CME lean hog index is down 2 cents to $90.18 as of March 5. The index has been chopping around $90.00 for the past two weeks.
- The pork cutout value rose a penny on Thursday to $96.49, with gains in primal hams, ribs and picnics offsetting losses in butts, bellies and loins. Movement totaled 221.8 loads.
- China imported 1.098 MMT of meat (including offal) during the first two months of the year, down 3,000 MT (0.2%) from last year. China doesn’t break down meat imports by category in the preliminary data, but the bulk is pork/pork products.
- April lean hogs are trading within Thursday’s upper range, as the previous session high of $87.55 stands as resistance while support lies at $85.90 and the 10-day moving average of $85.54.