Corn futures are mostly 2 to 6 cents higher at midmorning.
- Corn futures are building off Monday’s gains amid a sharp decline in the U.S. dollar.
- USDA reported daily corn sales of 132,000 MT to South Korea during 2024-25.
- South American crop consultant Dr. Michael Cordonnier lowered his Brazilian corn crop forecast 2 MMT to 123 MMT, as it’s likely 30% to 40% of the safrinha crop will be planted after the ideal window. Safrinha yields will be highly dependent on when Brazil’s rainy season comes to an end. Cordonnier kept his Argentine corn crop forecast unchanged at 47 MMT. Cordonnier now projects total South American corn production will decline 300,000 MT (0.2%) from year-ago.
- March corn has extended above resistance at $4.95 1/2, with last week’s high of $4.97 1/2 the next area to breach before facing resistance at $5.00. The 10-day moving average of $4.88 1/4 is serving as initial support.
Soybeans are 5 to 9 cents higher, while soymeal futures are around $7.50 firmer. Soyoil is around 80 points lower.
- Soybean futures are posting solid followthrough gains, with soymeal strength providing support.
- China on Tuesday imposed targeted tariffs on U.S. imports and put several American companies, including Google, on notice for possible sanctions, in a measured response to the sweeping duties on Chinese imports imposed by President Trump. Beijing’s limited counter to Trump’s imposition of an additional 10% tariff on all Chinese imports underscored the attempt by Chinese officials to engage in talks that could avert an outright trade war.
- Cordonnier left his Brazilian and Argentine soybean crop estimates unchanged at 170 MMT and 49 MMT, respectively. He forecasts South American soybean production will rise 16.6 MMT (7.6%) from last year.
- March soybeans have challenged the 200-day moving average of $10.70 3/4, while initial support lies at the 10-day moving average of $10.54 1/4.
SRW wheat futures are 1 to 2 cents higher, while HRW and HRS futures are chopping around unchanged.
- SRW wheat futures are firmer for the second straight session on support from sharp losses in the U.S. dollar, though technical resistance continues to curb momentum.
- State-level winter wheat condition ratings showed modest deterioration in the HRW crop during January, despite an improvement in top producer Kansas. On the weighted Pro Farmer Crop Condition Index (0 to 500-point scale, with 500 being perfect), the HRW crop slipped 0.5 point over the past month to 329.8, though the reading for the end of December didn’t include Texas. Click here for details.
- Black Sea consultancy SovEcon raised its 2025-26 Russian wheat export forecast by 1.9 MMT to 38.3 MMT. However, that would still be down 4.5 MMT from the forecast for the current marketing year.
- March SRW futures are challenging resistance at the 100-day moving average of $5.72 1/4, while initial support lies at the 10-day moving average of $5.55 3/4.
Live cattle are moderately weaker, while feeders are marking heavier losses at midsession.
- Nearby live cattle are lower in an extension of recent corrective selling as funds continue to liquidate long positions.
- Last week’s cash cattle average was up another 38 cents to a record $209.57, marking the fifth straight week cash prices notched a record.
- Wholesale beef values rose on Monday, with Choice rising $4.31 to $331.99 and Select up $2.77 to $319.84. Movement was light at only 89 loads.
- April live cattle dropped below the 20-day moving average, currently trading at $200.15, with next support at $198.61. Resistance is at $200.94.
Hog futures are moderately to sharply higher at midmorning.
- Nearby lean hog futures are regaining a portion of Monday’s losses in a corrective rebound.
- Lean hog futures have expanded limits of $6.00 today after yesterday’s limit-down performance in April hogs.
- The CME lean hog index is up another 29 cents to $83.77 as of Feb. 3. The index has risen $3.34 from the seasonal low on Jan. 9.
- The pork cutout dropped 94 cents to $93.81 on Monday as it gave back a portion of last Friday’s strong gains, led lower by hams.
- April lean hogs are trading within Monday’s lower range, with support at the 100-day moving average of $87.31, which is backed by the previous session low of $86.35. Resistance at the 40- and 20-day moving averages of $88.67 and $88.73 is being challenged. Gap resistance from yesterday extends from $89.575 to $89.775.