Corn futures are mixed with a slight upside bias at midmorning.
- Corn futures have pared overnight gains, though sharp followthrough losses in the U.S. dollar to near four-month lows are limiting seller interest.
- The Trump administration may announce a path to tariffs relief for Mexican and Canadian goods as soon as today, according to Commerce Secretary Howard Lutnick. While President Donald Trump is not expected to fully roll back the tariffs tied to the flow of fentanyl and migrants into the U.S., a compromise could see reduced tariffs if Canada and Mexico meet certain trade conditions.
- Ethanol production averaged 1.093 million barrels per day (bpd) for the week ended Feb. 28, up 12,000 bpd (1.1%) from the previous week and 36,000 bpd (3.4%) above the same week last year. Ethanol stocks declined 282,000 barrels to 27.289 million barrels.
- May corn futures continue to be limited by the 200- and 100-day moving averages of $4.56 1/2 and $4.63 1/4. Near-term support lies at Tuesday’s low of $4.42 1/2.
Soybeans are 3 to 7 cents higher, while soymeal futures are around $5.00 higher. Soyoil is around 20 points lower.
- Soybean futures are finding support from corrective buying after recent, sharp losses. Corrective gains in soymeal are also supportive.
- Beijing raised its 2025 budget for stockpiling grain, edible oils and other materials by 6.1% from a year ago to 131.66 billion yuan ($18.12 billion). It also allocated 54.05 billion yuan of subsidies for agricultural insurance premiums.
- World Weather Inc. reports rain will increase in Brazil Tuesday through March 19, slowing fieldwork, though the moisture will improve conditions for immature crop development.
- May soybean futures have pushed above the psychological $10.00 level, with resistance at $10.11. Initial support lies at Tuesday’s low of $9.91.
SRW wheat futures are mostly 6 to 9 cents higher, while HRW and HRS futures are mostly 4 to 5 cents higher.
- SRW wheat futures are posting gains for the first session in eight, with a plummeting dollar inducing light short-covering.
- Russia’s chief meteorologist said the country’s winter crops had emerged in much better condition at the end of winter than when they entered dormancy. He was referring primarily to crops in the European part of Russia, which has seen an unusually warm winter. However, he warned that a lack of precip during winter may hurt crops if spring rainfall isn’t timely.
- Colder temps in the U.S. Plains and Midwest will help slow the warming of soil temps and keep a larger part of winter crops dormant, according to World Weather. Much warmer weather this weekend may start inducing some greening in the south, though there is no risk of crop damaging conditions in the next two weeks.
- May SRW futures are facing resistance at $5.49, while support extends from today’s low of $5.37 to yesterday’s contract low at $5.30.
Live cattle are slightly to moderately firmer while feeders are positing stronger gains.
- Nearby live cattle are extending Tuesday’s gains in narrow trade as technical resistance continues to dampen heftier followthrough buying.
- Processing margins for beef plants have improved significantly but remain deep in the red. As a result, packers continue to slow slaughter rates, increasing the likelihood of additional near-term cash cattle pressure.
- Wholesale beef values rose on Tuesday, with Choice up 92 cents to $314.85, while Select gained $1.61 to $304.02. Movement totaled 121 loads.
- April live cattle are trading mostly between the 10- and 20-day moving averages of $194.39 and $195.41, with additional support/resistance at $193.01 (100-day moving average) and $196.57.
Hog futures are posting moderate to sharp gains at midmorning.
- Nearby lean hogs are firmer as strong discounts to the cash index spur buying from Tuesday’s low.
- The CME lean hog index is up 28 cents to $90.22 as of March 3, the third straight daily gain.
- The pork cutout value fell $2.02 on Tuesday, amid declines in all cuts aside from primal picnics. Movement totaled 316.6 loads.
- April lean hogs gapped higher at the open but are facing resistance at the 200-day moving average of $84.19, while support lies at today’s low of $82.875.