Corn futures are mostly 2 to 3 cents higher at midmorning.
- Corn futures are posting modest gains, despite general selling across most of the ag complex, as crude oil strength lends support.
- USDA reported daily corn sales of 365,000 MT to Mexico for 2024-25.
- Brazil’s corn exports totaled 3.594 MMT last month, down 672,000 MT (15.8%) from December and 1.282 MMT (26.3%) below January 2024.
- Brazil’s safrinha corn planting stood at 20% as of last Thursday, according to AgRural, well behind 38% on this date last year. The pace is strong in Paraná and Mato Grosso do Sul, but there is still a significant delay in Mato Grosso and Goiás.
- World Weather Inc. notes center-west and some southern areas of Brazil will get frequent shower and thunderstorm activity over the next two weeks, possibly inducing some periodic delay harvest for first season crops and safrinha corn plantings.
- USDA reported corn export inspections totaled 1.33 MMT (52.5 million bu.) during the week ended Feb. 6, up 81,174 MT from the previous week and near the upper end of the pre-report range of expectations from 1.0 MMT to 1.4 MMT.
- March corn is testing resistance at the 10-day moving average, currently trading at $4.90 1/4, while support lies around $4.83.
Soybeans are around a penny lower, while soymeal futures are modestly weaker. Soyoil is around 20 points lower.
- Soybean futures are weaker amid technical selling and easing weather concerns in Argentina.
- Some locally significant rain fell in northern Buenos Aires and far southern Santa Fe, Argentina, during the weekend. Argentina is forecast to receive more rains this week, with forecast models indicating greater amounts than on Friday, especially through central areas of the country.
- Brazil’s soybean harvest for the 2024-25 season reached 15% of the planted area as of last Thursday, according to AgRural, up 6 percentage points from the previous week but down from last year’s pace of 23% for the same period.
- Brazil exported 1.072 MMT of soybeans during January, down 932,000 MT (46.5%) from December and 1.786 MMT (62.5%) below last year.
- USDA reported soybean export inspections totaled 1.04 MMT (38.3 million bu.) during the week ended Feb. 6, down 98,078 MT from the previous week but near the upper end of the pre-report range of 500,000 MT to 1.25 MMT.
- March soybeans are facing resistance at the 20-day moving average of $10.51 1/4, while support lies at $10.43 1/2.
Winter wheat futures are mostly 4 to 6 cents lower while HRS futures are mostly a penny lower.
- SRW wheat futures are extending Friday’s losses, with pressure stemming from a firmer U.S. dollar.
- USDA reported wheat export inspections totaled 536,217 MT (19.7 million bu.) during the week ended Feb. 6, up 283,080 MT and above analysts’ pre-report range of 200,000 to 450,000 MT.
- IKAR consultancy cut its 2024-25 wheat export forecast by 500,000 MMT to 43 MMT, citing low stocks and poor margins as the main factors. IKAR also cut its 2025 wheat production estimate to 82 MMT from 84 MMT previously in a baseline scenario, saying forecasts for freezing temperatures could damage crops amid a lack of snow cover.
- March SRW futures are testing support around $5.77, which is backed by 20- and 10-day moving averages of $5.69 3/4 and $5.57 3/4. Initial resistance stands at $5.85 and is backed by $5.90 1/4 and last week’s high of $5.92 1/2.
Live cattle are posting moderate gains while feeders are sharply higher.
- Nearby live cattle are posting corrective gains following heavy fund liquidation last week.
- Cash cattle prices fell from the prior week’s record, but the cash market has held up better than futures.
- Wholesale beef values fell on Friday, with Choice down $2.11 to $321.87, while Select dropped $1.87 to $312.90. Movement was solid at 155 loads.
- April live cattle futures are hovering mostly above the 40-day moving average of $196.86, while resistance stands at $198.95.
Hog futures are moderately lower in deferred contracts at midmorning.
- Expiring February lean hog futures are modestly higher on support from the rising cash index. Deferred hogs have dropped from a more than two-month high carved in early trade.
- The CME lean hog index is up another 34 cents to $85.39 as of Feb. 6. The index is now nearly $5.00 off its seasonal low in early January.
- The pork cutout value rose $1.36 to $97.00, with gains in all cuts aside from primal loins. Movement totaled 281.6 loads.
- April lean hogs continue to face resistance at $92.85, while initial support lies at $91.33 and is backed by the 10-day moving average of $90.86.