Corn futures are chopping around unchanged at midmorning.
- Nearby corn futures are modestly firmer with modest short-covering in wheat negating some pressure from the soy complex.
- USDA reported daily sales of 132,000 MT of corn to unknown destinations during 2024-25.
- A dispute panel has ruled Mexico violated its commitments under the U.S.-Mexico-Canada Agreement (USMCA) by issuing a decree banning genetically modified (GM) corn imports in early 2023, marking a crucial win for American corn growers. The ruling carries substantial economic implications, given that Mexico is the largest export market for U.S. corn.
- Mexico said it would adhere to the USMCA ruling, which obliges it to eliminate restrictions on imports of U.S. GM corn. Mexican President Claudia Sheinbaum announced she will seek to prohibit the planting of GM corn in the country through a reform to the Constitution in 2025.
- USDA reported weekly export inspections of 1.12 MMT for the week ended Dec. 19, down 18,907 MT from the previous week.
- March corn futures are trading within Friday’s upper range, with resistance serving at the previous session high of $4.48 1/4, while initial support lies at the 10-day moving average of $4.44 1/4.
Soybeans are mostly 3 to 4 cents lower, while soymeal futures are around $2.00 to $2.50 lower. Soyoil is fractionally higher.
- Soybean futures are weaker amid technical pressure.
- USDA reported daily sales of 132,000 MT of soybeans to China during 2024-25.
- Eastern Argentina, southwestern Paraguay, southern and western Rio Grande do Sul and Uruguay will see less than usual precip over the next ten days leading to firming soil and possible development of crop stress, according to World Weather Inc. Most of Brazil is expected to see abundant moisture.
- USDA reported weekly export inspections of 1.75 MMT, up 51,102 MT from the previous week.
- January soybean futures are facing resistance at the 10-day moving average of $9.79 1/4 while initial support lies at $9.63 3/4 and is backed by psychological support at $9.50.
Wheat futures are 5 to 8 cents higher.
- SRW wheat futures are posting short-covering gains despite a stronger U.S. dollar.
- Waves of rain and some wet snow (mostly in the north) will occur in the coming week to ten days from central and eastern portions of U.S. HRW wheat country into the hear of the Midwest, Delta and part of the Tennessee River Basin, notes World weather.
- USDA reported weekly export inspections of 403,719 MT, up 102,830 MT from the previous week.
- March SRW futures are finding support at the previous session close of $5.33 while resistance is serving at $5.41 1/4.
Live cattle are mostly lower while feeders are higher at midsession.
- Nearby live cattle are modestly weaker amid technical pressure.
- USDA estimated there were 11.982 million head of cattle in large feedlots (1,000-plus head) as of Dec. 1, down 34,000 head (0.3%) from year-ago. Placements declined 3.7%, while marketings dropped 1.5% from November 2023. This data is fully neutral and should have virtually no market impact.
- USDA will detail frozen meat stocks for the end of November. The five-year average is a 13-million-lb. increase in beef stocks.
- Wholesale beef prices fell $4.84 for Choice to $315.85 and firmed $1.80 for Select to $285.91 on Friday. The $315.00 and $285.00 levels for Choice and Select beef, respectively, appear to be the comfort zone for packers and retailers, as values haven’t been able to sustain moves away from those levels.
- February live cattle are facing resistance at the 20-day moving average of $188.58 while the 40-day moving average, trading around $187.70 is serving as initial support.
Hog futures are sharply lower at midmorning.
- Hog futures are sharply lower amid profit taking in the wake of Friday’s gains
- Analysts expect USDA’s Hogs & Pigs Report this afternoon to show the U.S. hog herd up 0.1% from year-ago at 75.536 million head. The breeding herd inventory is anticipated to be about equal to last year, while market hog numbers are seen up 0.1%. After fourth-quarter slaughter ran under levels implied by the September H&P Report, some downward revisions are expected to past data.
- USDA will detail frozen meat stocks for the end of November. The five-year average is a 37-million-lb. decline in pork stocks during the month.
- The CME lean hog index is up another 14 cents to $84.35 as of Dec. 19, marking gains in five of the last seven days.
- The pork cutout value rose $1.13 on Friday to $97.28, led by a $13 jump in primal bellies. Movement totaled 239.2 loads for the day.
- February lean hogs are trading within Friday’s range, limited by the 40- and 20-day moving averages of $82.25 and $85.63, which are backed by the previous session high of $86.075. Initial support lies at Friday’s low of $83.675.