Corn futures are unchanged to 3 cents lower at midmorning.
- Corn futures are chopping around unchanged amid a general risk-off tone across the ag complex, with surging ethanol stocks and a firmer U.S. dollar limiting buyer interest.
- Ethanol production averaged 1.081 million barrels per day (bpd) during the week ended Feb. 21, down 3,000 bpd (0.3%) from the previous week but 6,000 bpd (0.6%) above the same week last year. Ethanol stocks jumped 1.353 million barrels to 27.571 million barrels, the second highest ever behind the week ended April 17, 2020.
- Mexico’s lower house of Congress has approved a constitutional reform to ban the planting of genetically modified (GM) corn, passing the measure with a 409-69 vote.
- Overnight, South Korea purchased a total of 133,000 MT of corn in two separate tenders, all of which is expected to be sourced from the U.S.
- May corn futures continue to find support at the 40-day moving average of $4.91 3/4, while resistance stands at $5.00.
Soybeans are 6 to 8 cents lower, while soymeal futures are around $1.00 lower. Soyoil is around 45 cents lower.
- Soybean futures are under pressure as global supply concerns ease and technical support fades.
- A recovery in palm oil production and lower imports by price-sensitive consumers are expected to drive prices lower, chipping away the premium to rival oils, even as top producer Indonesia boosts biodiesel production.
- The governor of the northern Brazilian state of Para said he will propose a bill to revoke a state tax on grains production. The governor’s decision comes amid criticism from farmers and an industry lobby regarding another new state law imposing a 1.8% levy on grain exports from neighboring Maranhao.
- May soybean futures are trading below the 10-day moving average of $10.42 3/4. The 40-day moving average, currently trading at $10.60 1/2, is resistance.
Wheat futures are 8 to 12 cents lower, with spring wheat leading losses.
- SRW wheat futures are posting losses for the third straight session and five of the last six days amid technical selling from the mid-February high continue.
- SovEcon reduced its 2024-25 Russian wheat export forecast by 600,000 MT to 42.2 MMT, reflecting the slow shipments pace. Russian exports are expected to fall 10.2 MMT (19.5%) from last year and 2 MMT (4.5%) from the five-year average.
- U.S. wheat is losing winter hardiness this week due to unusually warm temps, with some greening likely in the southern states from Texas to the southeastern states by this time next week, notes World Weather Inc.
- May SRW futures have dropped below support at the 100-day moving average, currently trading at $5.80 1/2, while the 20-day moving average of $5.92 is serving as resistance.
Live cattle are posting moderate losses while feeders are slightly lower.
- Nearby live cattle are weaker as traders anticipate another week of lower cash cattle trade.
- USDA will detail frozen meat stocks at the end of January in this afternoon’s Cold Storage Report. The five-year average is a 1.6-million-lb. increase in beef stocks during the month.
- While wholesale beef prices have risen over the past two days, cash cattle are expected to trade lower again this week as packer margins are deep in the red.
- April live cattle are trading within Tuesday’s range, with resistance/support serving at $196.36 and the 10-day moving average of $194.95.
Hog futures are modestly higher at midmorning.
- Nearby lean hogs are favoring the upside, though strong technical pressure continues to curb buying interest.
- USDA will detail frozen meat stocks at the end of January. The five-year average is a
- 44.7-million-lb. rise in pork stocks during the month.
- The CME lean hog index is down another 21 cents to $89.47 as of Feb. 24, marking the third straight daily decline.
- The pork cutout fell $2.889 to $95.65 on Tuesday, as all cuts except ribs weakened.
- April lean hogs are trading within Tuesday’s range, with initial resistance at $87.36, which is backed the previous session high of $87.55. Initial support lies at $86.38, then at $86.08.