Corn futures are mostly 4 to 6 cents lower at midmorning.
- Corn futures are lower in consolidative trade, as the market pauses after marking for-the-move highs earlier this week.
- Some of Argentina’s crop areas received rains this week, though northern and southern locations remained dry. Additional rains are in the outlook for next week, though complete relief from prolonged drought is not expected.
- Overnight, South Korea purchased 63,000 MT of corn to be sourced from the U.S., South America or South Africa.
- March corn futures are hovering around the 10-day moving average of $4.89 3/4, which is backed by the 20-day moving average of $4.85 1/2. Initial resistance stands at this week’s high of $4.98 1/2, which is backed by the psychological $5.00 level.
Soybeans are 8 to 11 cents lower, while soymeal futures are more than $4.00 lower. Soyoil is about 20 points higher.
- Soybean futures are facing pressure from temporary relief from moisture stress across Argentina’s main soybean areas.
- Rainfall earlier this week provided much-needed relief from dry conditions for over 60% of Argentina’s current planted soybean crop, according to the Rosario Grain Exchange. However, the report said northeastern areas have yet to benefit from the precip.
- Brazil’s weather is expected to produce periodic showers and thunderstorms in center-west and center-south crop areas for the next two weeks. The precip and intensity should be down from that of recent weeks.
- March soybeans are testing support at the 20-day moving average of $10.49 3/4, while resistance stands at the 200-day moving average, currently trading at $10.69.
Wheat futures are 2 to 4 cents lower.
- Wheat futures are posting modest corrective losses after a recent string of solid gains, with a firmer U.S. dollar curbing buyer interest.
- Cooling is advertised for Russia, Ukraine and Kazakhstan for late next week and into the following weekend, according to World Weather Inc. The cold temps will raise the need for snow cover in southern crop areas, especially for crops not well established last fall.
- StatsCan reported Canadian wheat stocks as of Dec. 31 totaled 24.5 MMT, 1.5 MMT above the average pre-report estimate and 0.9% higher than year-ago.
- March SRW futures reached the highest level since Nov. 7 at $5.92 1/2 overnight. That level is now initial resistance, while initial support lies at $5.73 1/4.
Live cattle and feeders are posting slight to moderate gains at midsession.
- Nearby live cattle are firmer in narrow trade in a rebound following Thursday’s strong losses.
- So far this week, cash cattle have declined around $3.00, on average, ending the extended string of record prices.
- Choice boxed values dropped $1.36 on Thursday to $323.98 while Select rose 44 cents. Movement totaled 114 loads for the day.
- April live cattle futures are hovering mostly above the 40-day moving average of $196.73, while resistance stands at $197.92.
Hog futures are modestly firmer at midmorning.
- Nearby lean hogs are higher amid technical buying and support from firming cash fundamentals.
- The CME lean hog index is up another 45 cents to $85.05 as of Feb. 5.
- The pork cutout value rose $1.81 on Thursday to $95.64 amid gains in all cuts aside from primal ribs and picnics. Movement totaled 248.3 loads.
- April lean hogs continue to face resistance at $92.44, while support is layered from $91.51 to the 10-day moving average of $90.63.