Corn futures are mostly a penny to 2 cents lower at midmorning.
- Corn futures are facing modest corrective selling, in step with soybeans, after forging a fresh for-the-move high in overnight trade.
- USDA reported daily corn sales of 330,000 MT to Mexico during 2025-26.
- Ethanol production averaged 1.112 million barrels per day (bpd) during the week ended Jan. 31, up 97,000 bpd (9.6%) from the previous week and 79,000 bpd (7.6%) above the same week last year. Ethanol stocks increased 690,000 barrels to 26.412 million barrels. That was the third largest weekly production on record and the highest stocks total since the week ended March 29, 2024.
- March corn futures notched a fresh near-term high overnight of $4.98 1/2, which is backed by resistance at $4.98 3/4 and the psychological $5.00 mark. Initial support lies at the 10-day moving average of $4.88 1/2.
Soybeans are 10 to 13 cents lower, while soymeal futures are around $2.00 lower. Soyoil is around 90 points lower.
- Soybean futures are weaker amid profit-taking following strong gains the previous two sessions.
- Relief from dryness has occurred in southern areas of Argentina during the past two days, improving summer crop conditions, which will continue through much of the coming week. Hot temps and no rain in northern and central parts of the nation will be stressful on crop development, causing yield and production concerns.
- Weather in Brazil is expected to improve during the next 10 days with less frequent and significant rain in central areas of the country, allowing some of the wetter areas to slowly dry down enough to improve fieldwork conditions.
- March soybeans have retreated below the 200-day moving average after extending to a new for-the-move high. Support is at the 10-day moving average of $10.55 1/4 while resistance stands at the overnight high of $10.79 3/4.
SRW wheat futures are narrowly mixed while HRW and HRS are mostly a penny to 3 cents higher.
- SRW wheat futures are modestly weaker on spillover from corn and the soy complex, despite weakness in the U.S. dollar.
- China has delayed imports of up to 600,000 MT of mostly Australian wheat and offered some of these cargoes to other buyers as ample domestic supplies reduce demand, two trade sources with direct knowledge of the matter told Reuters. Around 10 ships in total from Australia and Canada scheduled for delivery in January of February were being delayed or resold, each carrying around 60,000 MT of wheat.
- Ukraine is experiencing the lowest soil moisture levels of the last seven seasons, raising concerns about yields in 2025, the Ukrainian national agricultural academy said. Scientists said the insufficient amount of precipitation during most of the winter period and very low reserves of moisture in the soil “cause special concern for grain producers.”
- March SRW futures edged to a near three-month high before easing. Resistance is at $5.84 1/2. Initial support lies at the 100-day moving average of $5.72 1/4.
Live cattle and feeders are sharply higher at midsession.
- Live cattle and feeders are sharply rebounding after a recent string of corrective selling.
- Beef packer margins are deep in the red at well over $100.00 per head. As a result, packers have slashed production, with weekly estimated slaughter under 600,000 head. Highly negative packer margins, reduced slaughter runs and the availability of fresh contracted supplies may end the 11-week run of historic cash cattle prices.
- Wholesale beef values fell on Tuesday, with Choice down $1.26 to $330.73, while Select slid $2.43 to $317.41. Movement totaled 106 loads for the day.
- April live cattle have extended back above the 20-day moving average and are now facing resistance at the 10-day average, currently trading at $202.39. Initial support lies at $198.88.
Hog futures are posting moderate- to strong gains at midmorning.
- Nearby lean hog futures are notching followthrough strength amid technical support and strengthening cash fundamentals.
- The CME lean hog index is up another 31 cents to $84.08 as of Feb. 3, extending its rise from the seasonal low in early January.
- The pork cutout firmed 95 cents on Tuesday to $94.76, the highest since Dec. 27, as all cuts except bellies strengthened.
- April lean hogs gapped higher at the open and have extended above resistance at $90.96, with further resistance around $92.17. Support lies at the 10- and 20-day moving averages, currently trading at $89.70 and $89.09.