Corn futures are around a penny higher at midmorning.
- Corn futures are mildly firmer amid corrective buying but are facing headwinds.
- Argentina will see two more weeks of more sunshine than rain allowing fieldwork to advance well overall while soil moisture is great enough to favorably support crop development in much of the country while a large part of the region dries down, says World Weather Inc.
- USDA reported corn export inspections of 1.050 MMT (41.3 million bu.) during the week ended Dec. 5, up 100,878 MT from the previous week and in the upper end of the pre-report range of expectations from 700,000 MT to 1.1 MMT.
- March corn futures reversed off the mid-November high of $4.42 1/4, which will remain as resistance. Support stems from the 100-day moving average at $4.36 1/4, with firm backing from $4.33 1/4.
Soybeans are choppy at midmorning, while soymeal futures are around $3.00 higher. Soyoil is around 40 points lower.
- Soybean futures are well off intraday highs, despite relative strength in soymeal, which has been supported off Friday’s contract low.
- Heavy rain developed in interior southern Brazil as expected during the weekend, with more rainfall expected the first half of this week. World Weather Inc. says some flooding resulted, though the extent of any damage to crops is uncertain.
- USDA reported soybean export inspections of 1.622 MMT (59.6 million bu.) during the week ended Dec. 5, down 487,468 MT from the previous week but within the pre-report range of expectations from 1.3 MMT to 2.2 MMT.
- January soybean futures are testing support at the 10-day moving average of $9.92, while additional support lies at $9.83 3/4. Resistance at the psychological $10.00 mark limited gains this morning.
SRW wheat is 2 to 3 cents higher, while HRW and HRS futures are mostly 4 to 5 cents higher.
- Wheat futures are modestly higher, holding onto a portion of overnight gains.
- Russian grain exporters do not plan to unilaterally stop supplying wheat to Syria amid political turmoil there, the head of the Russian Grain Producers and Exporters Union said. Russia is a major supplier of wheat to Syria, where rebels seized the capital of Damascus, ending the rule of Bashar al-Assad. Assad fled to Moscow
- USDA reported wheat export inspections of 226,513 MT (8.3 million bu.) for the week ended Dec. 5, down 72,037 MT from the previous week and below the pre-report range of expectations from 250,000 to 400,000 MT.
- March SRW futures are trading within the 20- and 10-day moving averages of $5.61 1/2 and $5.56, with additional resistance/support at $5.64 3/4 and $5.50.
Live cattle futures are posting moderate gains while feeders are trading modestly higher.
- Nearby live cattle are firmer amid corrective buying and a supportive cash market.
- Last week’s cash cattle average is expected to have risen for the second consecutive week, spurring corrective strength in futures, which remain a discount to the cash market.
- Wholesale beef ended Friday mixed, with Choice cutout continuing to show relative strength, indicating a shortage of high-quality beef. Choice cutout climbed $4.20 to $312.04, while Select dipped 37 cents to $276.73.
- February live cattle are posting corrective gains, though strength was limited by the 40-day moving average at $186.95, which is reinforced by resistance at $187.35. Support comes in at $186.10 then $185.30.
Hog futures are facing moderate pressure at midmorning.
- February hog futures tested resistance this morning but reversed lower as seasonally topping pork production is weighing on the market.
- The CME lean hog index is down another 20 cents to $83.73 as of Dec. 5, marking a fresh seasonal low and the lowest mark since March 25.
- Pork cutout rebounded $2.52 to $91.16 Friday, with all cuts except ribs posting gains on the day. Movement was solid at 317.66 loads.
- Major British pork producers can resume shipments to China, the UK ag ministry announced. China is the UK’s largest non-EU pork customer.
- February lean hogs continue to trade in a tight downtrend from the late November highs. Stiff resistance persists at $88.00, while bulls are seeking to hold support at $86.20.