Corn futures are mostly 2 to 4 cents lower at midmorning.
- Corn futures are extending Wednesday’s mild losses, in step with soybeans, with a firmer U.S. dollar pressuring commodities.
- USDA reported corn export sales of 1.48 MMT for the week ended Jan. 30, up 9% from the previous week and 32% from the four-week average. Net sales were near the upper end of the pre-report range of expectations from 850,000 MT to 1.5 MMT.
- Mexico has rolled back restrictions on glyphosate and genetically modified (GM) corn after a ruling by a U.S.-Mexico-Canada Agreement (USMCA) dispute panel, marking a shift in its agricultural policy. The Ministry of Economy nullified key sections of the February 2023 decree restricting these products.
- March corn futures are trading around the 10-day moving average of $4.88 1/2. Support lies at $4.85, then at the 20-day moving average of $4.83 1/4. Resistance is at yesterday’s high at $4.98 1/2.
Soybeans are 3 to 4 cents lower, while soymeal futures are around $4.00 lower. Soyoil is chopping around unchanged.
- Soybean futures are facing followthrough selling after a low-range close on Wednesday, though technical support is limiting seller interest.
- USDA reported soybean export sales of 387,700 MT for the week ended Jan. 30, down 12% from the previous week and 40% from the four-week average. Net sales were near the low end of the pre-report range of expectations from 300,000 MT to 1.1 MMT.
- Shower activity in areas of central Brazil should diminish Feb. 18-20 and fieldwork may quickly increase, though confidence is still low for this period, according to World Weather Inc.
- In central and northern areas of Argentina, excessively hot, mostly dry and stressful conditions for crops will occur through next Tuesday, with permanent reductions in yield possible.
- March soybeans continue to be pressured by the 200-day moving average, currently trading at $10.69 1/2, while the 20-day moving average of $10.47 1/4 is serving as support.
Winter wheat futures are mostly 4 to 6 cents higher, while spring wheat is 2 to 4 cents higher.
- Wheat futures are firmer despite a stronger dollar, with support from solid weekly export sales.
- USDA reported wheat export sales of 438,900 MT for the week ended Jan. 30, down 4% from the previous week but up 41% from the four-week average. Net sales were near the upper end of the pre-report range of 200,000 to 550,000 MT.
- Cold weather may return to a part of the U.S. Central Plains next week, although temps should not be cold enough to induce any harm and there may be some snow that accompanies the cold, notes World Weather.
- March SRW futures are hovering mostly above the 100-day moving average of $5.71 3/4, while resistance stands at $5.81 1/4 and the previous session high of $5.84 1/4.
Live cattle and feeders are sharply lower at midsession.
- Nearby live cattle are facing heavy pressure amid fading cash fundamentals and notable wholesale weakness.
- Amid highly negative margins, packers started with cash cattle bids well below week-ago, though feedlots are in no hurry to move cattle at lower prices. If packers don’t get more aggressive with cash cattle bids, it’s likely this week’s negotiated trade will be small and packers will pull largely from contracted supplies.
- Wholesale beef values weakened on Wednesday, with Choice falling $5.39 to $325.34 while Select fell $3.08 to $314.33. Movement increased to 161 loads. That drove packer margins even deeper into the red.
- April live cattle have tested support at the 40-day moving average of $196.57 and edged to a one-month low, while resistance stands at the 10-day moving average of $202.01.
Hog futures are posting slight losses at midmorning.
- Nearby lean hogs are facing modest profit-taking after forging strong gains in the previous two sessions.
- The CME lean hog index is up another 52 cents to $84.60 as of Feb. 4, increasing the rise from the seasonal low to $4.17.
- The pork cutout value slipped 93 cents to $93.83 amid declines in primal butts, ribs and loins. Movement totaled 366.9 loads for the day.
- April lean hogs are facing resistance at $92.26, while initial support lies at $90.41, which is backed by the 10-day moving average of $90.13.