Corn futures are mostly 1 to 3 higher at midmorning.
- Corn futures are modestly higher in narrow trade as technical resistance crimps extended short-covering.
- USDA reported daily corn sales of 240,000 MT to Spain during 2024-25.
- USDA’s crop progress data showed corn was 2% planted as of April 6, which was in line with the five-year average.
- World Weather Inc. believes more rain will impact the lower Midwest later this month, which could limit fieldwork, raising the potential for producers to switch from corn to soybeans.
- South American crop consultant Dr. Michael Cordonnier maintained is Brazilian and Argentine corn forecasts at 122 MMT and 46 MMT, respectively. He holds a neutral/lower bias toward Brazil’s corn crop, noting the southern half of safrinha corn areas will enter reproduction later in April and the crop will need rainfall through May.
- May corn futures continue to be limited by the 100- and 40-day moving averages at $4.68 3/4 and $4.73 1/2. Support lies at the 20- and 200-day moving averages, currently trading at $4.60 and $4.57 3/4.
Soybeans are 8 to 15 cents higher, while soymeal futures are around $3.00 to $4.00 higher. Soyoil is narrowly mixed.
- Soybean futures are notching followthrough strength in step with soymeal.
- Cordonnier kept his Brazilian and Argentine soybean production forecasts unchanged at 169 MMT and 48 MMT, respectively.
- Traders are brushing aside escalating trade tensions between the U.S. and China this morning. “If the U.S. insists on having its way, China will fight to the end,” China’s commerce ministry said The Chinese response came after Trump threatened a further 50% tariff on all Chinese goods unless Beijing withdraws its tit-for-tat retaliation against his earlier “reciprocal” levies. That takes the cumulative tariff rate announced this year to 104%.
- May soybeans are pivoting around the psychological $10.00 level, with resistance at the confluence of the 10- and 20-day moving averages of $10.09. Initial support lies at $9.82.
SRW wheat futures are 3 to 4 cents higher while HRW and HRS contracts are steady to a penny higher.
- SRW wheat futures are trading within Monday’s upper range, with deteriorating U.S. winter wheat conditions limiting seller interest.
- USDA rated the winter wheat crop as 48% “good” to “excellent” and 21% “poor” to “very poor” in the initial ratings of the spring. On the weighted Pro Farmer Crop Condition Index (0 to 500-point scale, with 500 being perfect), the HRW crop opened spring at 324.7, down 14.6 points from last fall and 20.5 points below year-ago. The SRW crop declined 13.1 points from last fall to 366.4, down 7.4 points from last year. Click here for details.
- Frost and freezes in SRW wheat areas of the Midwest should not have induced any serious damage to developing wheat, while HRW areas will be dry for another week with temps turning hot again briefly during the coming weekend, according to World Weather Inc.
- May SRW futures are trading mostly between the 20- and 10-day moving averages of $5.46 1/2 and $5.35 1/2. Additional resistance/support are at $5.57 and $5.26.
Live cattle and feeders are moderately to sharply higher.
- Nearby live cattle are correctively higher following recent sharp selling pressure, though earlier gains have been pared.
- Last week’s cash cattle average fell $1.00 to $211.14. Expectations are cash prices will soften again this week.
- Wholesale beef values rose on Monday, with Choice up $1.05 to $339.50, while Select rose $2.12 to $319.30.
- April live cattle are trading within Monday’s wide range. Support is at Monday’s low at $198.60, while initial resistance stands at $201.72.
Hog futures are posting slight- to moderate gains at midmorning.
- Nearby lean hogs are firmer amid support from wholesale price strength, but continue to be limited by technical resistance.
- The CME lean hog index is down another 17 cents to $88.19 as of April 4.
- The pork cutout value rose $1.50 to $97.27 on Monday amid strong gains in primal ribs and loins.
- April lean hogs continue to face resistance at $88.14, while support lies at the nearly converged 10- and 40-day moving averages, trading at $87.43 and $87.51.