Corn futures are mostly a penny higher at midmorning.
- Corn futures are favoring the upside in consolidative trade.
- USDA reported corn export sales of 1.65 MMT for the week ended Feb. 6, up 12% from the previous week and 20% from the four-week average. Net sales were near the upper end of the pre-report range of expectations from 800,000 MT to 1.7 MMT.
- Conab raised its total corn crop estimate for Brazil to 122.01 MMT, up almost 2.46 MMT from January.
- The Rosario Grain Exchange cut its Argentine corn production forecast by 2 MMT to 46 MMT due to heat and moisture stress.
- Overnight, South Korea purchased 132,000 MT of corn to be sourced from the U.S., South America or South Africa.
- March corn futures are trading within the recent consolidation range, testing initial resistance at $4.92 1/4, which is backed by $4.94 1/2. Support lies at $4.83 3/4.
Soybeans are narrowly mixed with a downside bias, while soymeal futures are around $1.00 lower. Soyoil is around 10 points firmer.
- Soybean futures are rather directionless at midmorning.
- Conab trimmed its Brazilian soybean supply forecast to 166.01 MMT for 2024-25, citing “irreversible crop losses” in southern Brazil due to drought.
- The Rosario Grain Exchange forecasts the country’s soybean production at 47.5 MMT, around 5 MMT less than if weather conditions were favorable, and warned crop potential could decline more depending on rains over the next 10 days.
- USDA reported soybean export sales of 185,500 MT for the week ended Feb. 6, down 52% from the previous week and 74% from the four-week average. Net sales were well below analysts’ pre-report expectations ranging from 300,000 to 800,000 MT.
- March soybeans are finding support at the 40-day moving average of $10.24 1/4, while resistance is at $10.33.
Wheat futures are mostly unchanged to 5 cents higher, with HRW contracts leading gains.
- Wheat futures are modestly firmer with support from a notably weaker U.S. dollar.
- Bitter cold temperatures hit U.S. winter wheat areas overnight. World Weather Inc. says most of the wheat produced in this region should not have been vulnerable to damage from the arctic temps because of widespread snow cover. However, the forecaster noted there is still considerable debate over whether serious crop damage occurred in January when bitter cold overspread the same region with limited or no snow cover.
- Strategie Grains slightly increased its wheat production forecast for the European Union to reflect improved planting conditions and a response to competitive market dynamics. The French consultancy now expects EU wheat production to reach 127.7 MMT, up 500,000 MT from its prior forecast and 14 MMT (12.3%) above last year.
- USDA reported wheat export sales of 569,600 MT for the week ended Feb. 6, up 30% from the previous week and 45% from the four-week average. Net sales were near the upper end of pre-report expectations from 200,000 to 600,000 MT.
- March SRW futures are facing resistance at $5.81 1/2, while the 100-day moving average of $5.71 1/4 is support.
Live cattle are moderately firmer while feeders are sharply higher at midsession.
- Nearby live cattle are firmer as steep discounts to the cash market provide support.
- Wholesale beef prices dropped $3.20 for Choice to $319.26 and $3.07 for Select to $309.14 on Wednesday. While spot movement improved to 176 loads, retailer demand has been seasonally weak and isn’t expected to improve much until late winter/early spring.
- USDA reported weekly beef export sales of 13,100 MT for 2025.
- April live cattle are consolidating mostly between $196.43 and $195.05, with additional resistance/support at the 40-day moving average of $197.12 and $194.38.
Hog futures are modestly weaker at midmorning.
- Nearby lean hogs are consolidating beneath this week’s high.
- The CME lean hog index is up another 89 cents to $87.08 as of Feb. 11, marking the biggest daily increase in the seasonal price rise. The index has jumped $6.65 since the seasonal low on Jan. 9.
- USDA reported weekly pork export sales of 24,900 MT for 2025.
- April lean hogs are facing resistance at $94.13, which is backed by this week’s high of $94.75, while initial support lies at today’s low of $93.20.