Corn futures are mostly 4 cents higher at midmorning.
- Corn futures are posting followthrough gains amid support from soybeans and a weaker U.S. dollar.
- USDA reported daily corn sales of 150,000 MT to Colombia for 2024-25.
- Argentina’s forecast is drier today and that may lead to larger part of the nation experiencing firmer soil by this time next week with additional drying and possibly some crop stress by the end of the month, according to World Weather Inc.
- Overnight, South Korea purchased 67,000 MT of corn that can be sourced from the U.S., South America or South Africa but passed on another tender to buy up to 69,000 MT of corn.
- March corn futures are facing resistance around $4.46 1/2, which is backed by the 200-day moving average of $4.50 1/4 and the Dec. 11 high of $4.51 1/2.
Soybeans are mostly 9 to 10 cents firmer, while soymeal futures are $7.00-plus higher. Soyoil is around 40 points lower.
- Soybean futures are correctively higher for a second straight session, with meal strength providing support.
- China’s Sinograin has bought nearly 500,000 MT of U.S. soybeans this week for shipment in March and April, paying more for U.S. supplies for state reserves rather than buying cheaper Brazilian beans, two U.S. traders familiar with the deals told Reuters. Sinograin’s purchases this week follow deals China booked last week for around 750,000 MT for shipment from January to March.
- Of the 7.15 MMT of soybeans China imported last month, 2.79 MMT came from the U.S., up 21.8% from last year. November arrivals from Brazil declined from year-ago, though it was still the leading source at 3.94 MMT. For the first 11 months of 2024, China imported 97.09 MMT of soybeans, with 71.7 MMT from Brazil (up 10%) and 17.88 MMT from the U.S. (down 9%).
- January soybean futures are facing resistance at the 10- and 20-day moving averages of $9.81 1/4 and $9.84 1/2, while support lies at $9.57 1/2.
Winter wheat markets are 1 to 2 cents lower, while spring wheat is unchanged to a penny higher.
- SRW wheat futures are lower for the seventh straight session despite a weaker dollar and global supply concerns.
- Russia set its wheat export quota for the second half of 2024-25 at 10.6 MMT, the government said. That’s down from the 11 MMT quota announced last month by the Eurasian Economic Union, a trade association of Russia and other four ex-Soviet countries. The quota from Feb. 15 to June 30 is down 63.4% from 29 MMT last year.
- Russia’s Southern Region, eastern Ukraine and western Kazakhstan will not receive much moisture in the next two weeks, although there will be some showers. Winter crops were not well established during the autumn and production could be significantly reduced without timely rain this spring, according to World Weather.
- March SRW futures have posted a new low, extending to the lowest level since August 2020 on the continuation chart. Support at $5.28 1/2, while initial resistance stands at $5.39 1/2.
Live cattle and feeders are moderately to sharply higher at midsession.
- Nearby live cattle are correctively firmer following heavy selling earlier this week.
- Cash cattle traded steady to $2.00 higher so far this week, despite the sharp break in futures.
- Analysts expect USDA’s Cattle on Feed Report this afternoon to show the large feedlot (1,000-plus head) inventory down 0.3% from year-ago at 11.975 million head as of Dec. 1. The report is expected to show a 5.1% decrease in the number of cattle moved into feedlots last month, while marketings are anticipated to be down 1.8% from November 2023. Of note: The U.S. ban on Mexican cattle imports went into effect on Nov. 22, so this month’s report won’t fully reflect those restrictions.
- Choice boxed beef prices surged $5.85 on Thursday to $320.69, while Select slipped $1.44 to $284.11, widening the Choice/Select spread to $36.58. Movement was light, however, at only 98 loads.
- February live cattle continue to find support at the 200-day moving average of $186.24, while resistance stands at the 40-day moving average of $187.71.
Hog futures are posting moderate to strong gains at midmorning.
- Hog futures are higher amid persisting signs a seasonal bottom has formed in the cash index.
- The CME lean hog index up another nickel to $84.21 as of Dec. 18. That’s the fifth gain in the last seven days, though the net advance during that span is only 89 cents.
- The pork cutout value slipped 20 cents on Thursday to $96.15 amid declines in primal ribs, bellies and hams. Movement totaled 269.8 loads.
- February lean hogs are facing resistance at the 40-day moving average of $85.23, while support lies at the previous session low of $83.50.