Corn futures are mostly 2 to 3 cents lower at midmorning.
- Corn futures are facing general selling pressure on spillover from heavy losses in soybeans.
- USDA reported daily corn sales of 170,400 MT to Mexico for 2024-25.
- South American crop consultant Dr. Michael Cordonnier raised his Argentine corn crop estimate by 1 MMT to 49 MMT due to expectations of more plantings. He has a neutral bias toward the crop going forward, but notes weather in Argentina is starting to look “problematic.” He left his Brazilian corn crop estimate unchanged at 125 MMT.
- March corn futures are testing support at the 10-day moving average of $4.41 1/2, while initial resistance stands at $4.46 3/4.
Soybeans are mostly 10 to 14 cents lower, while soymeal futures are near unchanged. Soyoil is around 150 points lower.
- Soybean futures are extending lower for the third straight session, pressured by heavy selling in soyoil futures.
- USDA reported daily soybean sales of 187,000 MT to Spain and 132,000 MT to unknown destinations for 2024-25.
- The Chinese government’s efforts to limit agricultural imports are causing a soybean shortage in southern areas of the country by leading to longer-than-usual wait times at customs, traders with knowledge of the matter told Bloomberg. Some soybean crushers in the oilseed processing hub of Dongguan in Guangdong province have had to suspend operations for the last three weeks as they can’t get enough supply, said the traders.
- Cordonnier cut his Argentine soybean crop forecast by 2 MMT to 55 MMT, as it appears farmers won’t switch as many hectares of corn to soybeans as anticipated. Cordonnier left his Brazilian soybean estimate unchanged at 170 MMT.
- January soybean futures fell to a contract low, with next support at $9.65. Resistance starts at the old low at $9.73 1/2 and extends to the 20- and 10-day moving averages, each trading around $9.89.
Winter wheat futures are 5 to 7 cents lower, while spring wheat is mostly 3 cents lower.
- Wheat futures continue to face technical selling despite global supply concerns.
- SovEcon reduced its Russian wheat crop forecast for 2025 by 3 MMT to 78.7 MMT, citing crop conditions it said were the worst in decades. The consultancy noted it would be the smallest wheat crop since 2021.
- French farmers are expected to plant 4.51 million hectares of winter wheat for harvest next year, according to the ag ministry, up 8.7% from last year. However, that would still be 0.8% lower than the five-year average.
- Only about 3% of Ukraine’s winter crops are in unsatisfactory condition while 77% were rated as good at Dec. 10, the APK-Inform agriculture consultancy said, citing state weather forecasters.
- March SRW futures have extended below initial support at $5.45 3/4, with next support at $5.41 3/4, which is backed by the Dec. 4 low of $5.40 1/4. Meanwhile, the 10- and 20-day moving averages, each trading around $5.56, are resistance.
Live cattle are modestly firmer while feeders are posting strong gains at midsession.
- Nearby live cattle are posting modest corrective gains following Monday’s strong losses.
- Cash cattle prices firmed $3.41 last week to an average of $194.31. The cash market has outperformed expectations over the past month, despite negative packer margins.
- Choice boxed beef prices rose 98 cents on Monday to $317.17 while Select surged $5.71 to $289.57. Movement totaled 104 loads for the day.
- February live cattle are trading within Monday’s lower range, with initial support at the previous session low of $189.75 while initial resistance stands at $190.98.
Hog futures are mixed at midmorning.
- December hog futures are chopping around unchanged in directionless trade.
- The CME lean hog index is down 6 cents to $83.84 as of Dec. 13.
- The pork cutout value rose 92 cents on Monday to $95.53, led by gains in primal ribs and bellies. Movement totaled 367.5 loads for the day.
- February lean hogs are trading within Monday’s lower range, limited by resistance at $84.275, while support lies at the previous session low of $82.675.