Corn futures are around a penny higher at midmorning.
- Corn futures are seeing modest followthrough strength today as technical headwinds limit buyer interest.
- USDA aggressively raised its ethanol and export estimates for the 2024-25 crop year, tightening ending stocks more than expected on Tuesday. That pushed futures to the highest level since early October. Still, traders are unimpressed as nearby futures are posting little more than modest gains.
- Ethanol production averaged 1.078 million barrels per day (bpd) during the week ended Dec. 6, up 5,000 bpd (0.5%) from the previous week and 4,000 bpd (0.4%) above the same week last year. Ethanol stocks dropped 355,000 barrels to 22.648 million barrels.
- Potential tariffs by the incoming Trump administration have increased demand for Ukrainian corn, Hellenic Shipping News reported.
- March corn futures are facing resistance at the psychological $4.50 level, which coincides with the 200-day moving average at $4.51. Bulls are looking to hold support at the Nov. 8 high of $4.47 3/4 on a move lower.
Soybeans are 4 to 5 cents higher at midmorning, while soymeal futures are modestly lower. Soyoil is around 40 points higher.
- Soybean futures are trading solidly higher, supported by corn, which historically leads price action in the month of December.
- The two-week outlook remains favorable for crop development across much of Brazil as regular rounds of showers and thunderstorms will bring ample amounts of precip to support crop development, says World Weather Inc.
- China got a head start on a looming trade war with the U.S. by showcasing a new range of tools it’s prepared to use if Donald Trump makes good on his threat to punish the world’s second-biggest economy with tariffs, Bloomberg reports.
- January soybean futures are testing the psychological $10.00 mark for the third consecutive session. The 10-day moving average continues to serve as initial support at $9.92 1/2.
Winter wheat futures are 3 to 5 cents higher, while HRS contracts are mostly 2 cents higher.
- Winter wheat futures are building upon recent strength and are trading at a more than two-week high.
- Wheat futures have found some fundamental support from a favorable world balance sheet that led to USDA cutting 2024-25 ending stocks more than expected.
- India lowered the limit of wheat stocks that traders and millers can hold, the government said, in an effort to boost availability and moderate domestic prices that hit a record high this month. Traders can now hold only 1,000 MT of wheat, half of the previous allowance.
- March SRW futures are trading above the 20-day moving average for the first time in nearly two months, which marks initial support at $5.61 3/4. Bulls’ next objective is overcoming the 40-day moving average at $5.71.
Live cattle futures and feeders are posting moderate gains at midmorning.
- Nearby live cattle are breaking out on the daily bar chart, overcoming the early December highs.
- Cash cattle trade has had a slow start to the week at steady levels with a week ago, lending some support to the futures market.
- Wholesale beef ended Tuesday mixed with Choice cutout falling $2.41 to $311.73 while Select rose 31 cents to $279.65.
- February live cattle broke above solid technical resistance at $189.50, marking that area as initial support. Resistance stems from the psychological $190.00 mark, then the October high at $190.325.
Hog futures are mostly lower at midmorning.
- February hog futures opened higher but have since turned lower.
- The CME lean hog index is down another 13 cents to $83.33 as of Dec. 9.
- Pork cutout slipped 49 cents to $93.14 Tuesday, led lower by a $5.66 drop in ribs, though remains near recent highs.
- February lean hogs are supported by 40-day moving average at $84.40, which capped the downside Tuesday. Bulls are eyeing prior support, now resistance at $85.75, which failed yesterday morning.