Corn futures are mostly a penny higher at midmorning.
- Corn futures are posting gains for the fifth straight session amid strengthening technicals and fund-led buying.
- Thailand’s feed industry is pitching to buy about $2.8 billion worth of agricultural commodities annually from the U.S. instead of other suppliers, as the country seeks to narrow its $35 billion trade surplus and head off possible tariffs on its own exports.
- Brazil is pushing back against the Trump administration’s complaints about ethanol tariffs by highlighting the lack of reciprocal access for Brazilian sugar in the U.S. market. Brazilian officials argue that any discussion of fair trade should include addressing the high tariffs and quotas on Brazilian sugar exports to the United States. Click here to view our special report.
- Overnight, Taiwan purchased 65,000 MT of U.S. corn.
- March corn is holding within Tuesday’s upper trading range, with resistance layered at the previous session high of $5.04 1/4, which is backed by $5.06 1/2. Support is at the psychological $5.00 area.
Soybeans are 3 to 5 cents higher, while soymeal futures are around $3.00 higher. Soyoil is around 50 cents weaker.
- Soybean futures are higher with strength in corn and soymeal bolstering gains.
- Soybean harvest efforts and safrinha corn planting conditions in center-west Brazil will be favorable into the weekend, though increasing rain frequency and significance is possible after that.
- The Renewable Fuels Association (RFA) is urging the reinstatement of expired biofuel tax incentives to provide stability amid uncertainty surrounding the new Section 45Z clean fuel production tax credit. RFA President Geoff Cooper emphasized that bringing back these credits would bridge the gap until the 45Z credit becomes fully operational in 2025.
- March soybeans have pushed above the 10-day moving average of $10.43 1/2. Resistance is at the 20-day, currently trading at $10.49 1/4. The 40-day moving average of $10.29 3/4 continues to serve as support.
Winter wheat futures are mostly 4 to 8 cents lower, while HRS futures are unchanged to a penny higher.
- SRW wheat futures are correctively lower in the wake of recent gains.
- Some crop damage has possibly occurred recently in South Dakota due to bitter cold and no snow cover, according to World Weather. There is some concern over possible crop damage today in southwestern Kansas, southeastern Colorado and in a few areas south into the Texas Panhandle.
- Overnight, Jordan tendered to buy up to 120,000 MT of optional origin milling wheat.
- March SRW futures are trading within Tuesday’s upper range, limited by the 200-day moving average of $6.00 1/2, which is backed by the previous session high of $6.09. Initial support lies at $5.95 1/2.
Live cattle are mostly firmer while feeders are marking moderate losses at midsession.
- February live cattle are modestly lower, while deferred contracts are firmer.
- USDA announced it will not impose new restrictions on cattle imports from Mexico despite the latest detection of New World screwworm in a cow from Tabasco state. The decision follows the agency’s implementation of a pre-clearance inspection and treatment protocol, which aims to ensure safe livestock movement and mitigate screwworm risks. That’s weighing on feeder cattle after Tuesday’s strong gains.
- Choice boxed beef values rose 7 cents on Tuesday to $315.77, while Select fell $2.52 to $303.71. Movement improved to 140 loads.
- April live cattle continue to face pressure from the 10- and 40-day moving averages of $196.41 and $197.44, while support lies at $193.08 and is backed by the 100-day moving average of $192.37.
Hog futures are sharply lower at midmorning.
- Nearby lean hogs are sharply lower as technical selling and weakening wholesale values are pressuring prices.
- The CME lean hog index is up another 70 cents to $90.19 as of Feb. 17, continuing the strong rebound from the early January seasonal low.
- The pork cutout fell $3.00 to $99.47 on Tuesday, pressured mostly by a $10.25 drop in primal bellies.
- April lean hogs gapped lower at the open and have extended below the 10-day moving average of $92.46, while resistance stands at today’s high of $92.70.