Corn futures are around a penny lower at midmorning.
- Corn futures are modestly weaker amid a general risk-off tone across the ag complex.
- Mexico expects a decision by Dec. 14 in the U.S. challenge to its ban on GMO corn imports for food use, according to Mexico Economy Minister Marcelo Ebrard. The case, brought under the U.S.-Mexico-Canada Agreement (USMCA), concerns Mexico’s restriction on white corn imports, which it claims to be self-sufficient in producing.
- Weekly ethanol production averaged 1.073 million barrels per day (bpd) during the week ended Nov. 29, down 46,000 bpd (4.1%) from the previous week’s record and 3,000 bpd (0.3%) below the same week last year. Ethanol stocks rose 134,000 barrels to 23.003 million barrels.
- March corn futures are pivoting around the 40-day moving average of $4.31 3/4, with resistance at the 10- and 20-day moving averages of $432 3/4 and $4.35 3/4. Initial support lies at $4.30 1/4 and is backed by $4.28.
Soybeans are mostly 8 to 10 cents lower, while soymeal futures are around $1.00 lower. Soyoil is mostly 30 to 40 points lower.
- Soybean futures have erased Tuesday’s corrective gains amid looming technical pressure.
- Argentina will see less frequent and less significant rainfall over the next two weeks, while southern Brazil and southern Paraguay will become too wet, with local flooding possible. Some drying is expected in central Brazil during Dec. 12-18.
- USDA reported daily soyoil sales of 30,000 MT to South Korea for 2024-25.
- January soybean futures have extended below the 10-day moving average of $9.85 3/4, with support now at $9.75 3/4. Initial resistance stands at $9.91 1/2 and is backed by the 20- and 40-day moving averages, currently trading at $9.97 1/2 and $9.99 1/4.
Winter wheat futures are 5 to 7 cents lower, while HRS futures are mostly 2 to 3 cents lower.
- Wheat futures are facing selling pressure despite looming global supply concerns and a weaker U.S. dollar index today.
- The share of winter crops in Russia for the 2025 harvest in poor condition or not yet sprouted is at an unprecedented level of over 37%, analysts from ProZerno said, citing state weather forecasting agency data. Analysts said 31% of the crop was in good condition, compared to 74% last year.
- GFS model remains a little too excited about bringing moisture into Russia’s Southern Region, eastern Ukraine and western Kazakhstan on today’s forecast model runs, World Weather Inc. reports. Some precip is expected, but the GFS model run is too wet.
- Heavy rainfall has hit Australia’s bumper wheat harvest causing widespread quality downgrades, traders and analysts said, increasing the prospect of tightening global supply. Between 2.5 MMT and 5 MMT of production in the country’s southeastern growing region was affected.
- March SRW futures have taken out the August low of $5.42, posting a new contract low. Support is now at $5.39 1/4. Initial resistance stands at $5.49 3/4.
Live cattle are mildly weaker while feeders are moderately to sharply lower.
- Nearby live cattle are holding near unchanged as traders await direction from the cash market.
- Cash cattle remain light so far this week, though cash sources are expected a generally softer tone to develop through the holidays given recent strong packer purchases.
- Wholesale beef prices dropped $2.18 to $310.83 for Choice and $1.67 to $275.33 for Select on Tuesday. Spot movement jumped to 154 loads amid the sharp price declines, signaling strong underlying retailer demand as they acquire supplies for year-end holiday features.
- December live cattle are trading within Tuesday’s range, limited by the previous session high of $188.775, while initial support lies at $187.925 and is backed by Tuesday’s low of $187.80.
Hog futures are posting moderate to sharp losses at midmorning.
- After recent efforts to tighten discounts, December hog futures are under pressure from the weakening cash index.
- The CME lean hog index is down another 30 cents to $84.06 as of Dec. 2. The index has declined each day but one since Nov. 6 but remains 22 cents above the October low.
- The pork cutout fell $3.05 on Tuesday to $89.61, pressured mostly by a $14.59 plunge in primal belly prices, though hams, ribs and butts were also lower.
- December lean hogs are tesing support at $82.67 while initial resistance stands at $83.42.