Corn futures are mostly unchanged at midmorning.
- Corn futures are hovering around unchanged, with solid technical support curbing seller interest.
- USDA reported weekly corn sales of 1.71 MMT for the week ended Dec. 19, up 46% from the previous week and 39% from the four-week average. Net sales exceeded analysts’ pre-report range of 1.0 to 1.6 MMT. Exports during the week totaled 1.12 MMT.
- Brazil’s corn exports from January to November displayed significant growth, as movement through the Northern Arc of ports jumped. Conab forecasts continued growth in Brazil’s agricultural exports, driven by production recovery and improved logistics.
- March corn futures are trading within Thursday’s upper range, with resistance serving at the previous session high of $4.55, while initial support lies at the 200-day moving average of $4.49 1/2.
Soybeans are mostly 6 cents lower, while soymeal futures are around $4.00 lower. Soyoil is around 30 points higher.
- Soybean futures are correctively lower following Thursday’s gains.
- USDA reported weekly soybean sales of 978,000 MT for the week ended Dec. 19, a marketing-year low, down 31% from the previous week and 47% from the four-week average. Net sales were short of the pre-report range of 1.0 to 1.8 MMT. Exports totaled 1.57 MMT for the week.
- From January to November, Brazil’s soybean exports totaled 96.8 MMT, a drop from 101.8 MMT in the same period of 2023. This marked a shift in Brazil’s export revenue leadership, as soybeans lost ground to oil.
- January soybean futures are trading within Thursday’s range, with resistance serving at the 40-day moving average of $9.91 1/2, while support lies at $9.78 3/4 and is backed by the 10-day moving average of $9.75.
Wheat futures are mostly unchanged to a penny lower
- SRW wheat futures are mostly weaker as technical pressure continues to curb a move higher.
- USDA reported weekly wheat sales of 612,400 MT, up 34% from the previous week and 64% from the four-week average. Net sales topped the pre-report range of 250,000 to 600,000 MT. Exports totaled 376,200 MT for the week.
- U.S. HRW wheat production areas are unlikely to get much precip during the next ten days, although a few showers are possible, notes World Weather Inc. Temps will turn much colder during the second half of next week and into the following week, which may raise the need for snow cover after the next few days of warm weather reduces winter hardiness.
- Egypt’s state grain buyer has reportedly locked in enough wheat to meet the country’s needs through the end of June 2025, according to Reuters. However, a lack of details around timing, price and whether the contracts represent new deals has raised some questions. Most of the wheat was to be sourced from Russia.
- March SRW futures are trading within Thursday’s upper range, limited by the 10-day moving average of $5.40 3/4 and the previous session high of $5.44. Initial support lies at $5.35 1/4.
Live cattle and feeders are mixed at midsession.
- Nearby live cattle are modestly weaker following Thursday’s strong gains.
- Thursday’s surge in cattle futures, along with a sharp rise in wholesale beef values has cash sources now expecting steady-at-worst prices for this week’s cash cattle trade. But it remains uncertain how actively packers will attempt to bid for cattle with another holiday-shortened slaughter schedule next week and still deeply negative margins.
- USDA reported net beef sales of 1,100 MT for 2024, down 85% from the previous week and 81% from the four-week average.
- China will launch an investigation into beef imports, the commerce ministry said, as the world’s biggest meat importer and consumer grapples with an oversupplied market that has dropped domestic prices to multi-year lows.
- February live cattle are trading within Thursday’s upper range, with resistance serving at the previous session high of $190.375, while initial support lies at $189.365, which is backed by the 10-day moving average of $189.050.
Hog futures are firmer at midmorning.
- Nearby hog futures are modestly favoring the upside amid persisting cash strength.
- The CME lean hog index is up another 35 cents to $85.10 as of Dec. 23, marking a sixth straight daily gain and eight of the last 10 days. During that span, the index has risen $1.77 from the Dec. 9 low.
- USDA reported net pork sales of 7,100 MT for 2024, down 37% from the previous week and 67% from the four-week average.
- February lean hogs continue to face initial support at $83.70, with additional support serving at $83.20. Initial resistance stands at $84.70 and is backed by the 40- and 20-day moving averages, each trading around $85.23.