Corn futures are mostly a penny to 3 cents higher at midmorning.
- Corn futures are recouping Tuesday’s losses amid notable outside market support.
- Ethanol production averaged 1.095 million barrels per day (bpd) during the week ended Jan. 10, down 7,000 bpd (0.6%) from the previous week but 41,000 bpd (3.9%) above the same week last year. Ethanol stocks rose 860,000 barrels to 25.008 million barrels.
- Overnight, Taiwan purchased 65,000 MT of U.S. corn.
- Rain in center-west, northeast and center-south Brazil will maintain favorable soil moisture for most crops, although there is some need for drier conditions to promote faster early soybean maturation and harvest progress to limit delays to second season corn plantings.
- March corn futures are trading within Tuesday’s range, limited by resistance at the previous session high and low of $4.79 3/4 and $4.73 1/2. Additional resistance/support is at $4.82 1/4 and $4.72.
Soybeans are mostly 2 to 3 cents lower, while soymeal futures are around $3.00 lower. Soyoil is around 40 points higher.
- Soybean futures are extending Tuesday’s weakness, with soymeal leading the complex lower.
- Analysts expect the National Oilseed Processors Association (NOPA) to report December soybean crush reached a record 205.5 million bushels. If realized, that would be up 6.4% from November and 5.2% above year-ago. It would also top the current all-time high of 200 million bu. from October. Soyoil stocks held by NOPA members as of Dec. 31 were projected to rise to 1.253 billion pounds.
- Rain prospects are still looking good for Argentina, southern Brazil, Uruguay and Paraguay briefly Friday into the weekend, although the resulting rainfall will not be enough to seriously relieve the nation’s crops from hot, dry conditions, notes World Weather Inc. Much more rain will be needed to induce a more definitive break from the heat and dryness.
- March soybeans are being limited by resistance at $10.51 1/2, which is backed by $10.59 3/4 and Tuesday’s high of $10.64. Initial support lies at $10.39 1/4.
Winter wheat futures are mostly 1 to 3 cents lower, while HRS futures are narrowly mixed.
- SRW wheat futures are mostly lower despite a weaker U.S. dollar.
- A large arctic air mass is still expected to start moving into the U.S. HRW wheat region Friday night and persist into Tuesday. There will be a need for protective snow cover Sunday through Tuesday in central, western and northern production areas due to threateningly cold temps. World Weather says light snow is likely in parts of this area, and it will not take much snow to provide protection since winter crops should be durable after recent cold weather.
- France’s ag ministry kept its monthly forecast for 2024-25 French soft wheat exports outside the European Union unchanged at the lowest since records back to 2000-01, as lacking demand from Algeria and China continued to limit shipments in the wake of a poor French harvest and Black Sea competition.
- March SRW futures are facing resistance at the 40-day moving average of $5.49 1/4, while initial support lies at 20- and 10-day moving averages of $5.40 1/2 and $5.39 3/4.
Live cattle and feeders are posting moderate to strong gains at midsession.
- Nearby live cattle are posting strong gains as traders anticipate at least steady cash trade again this week.
- Light cash cattle trade occurred at the top of last week’s price range in the northern market on Tuesday, suggesting prices may be steady/firmer again this week. Uncertain is whether this was cleanup sales from last week or fresh business. Either way, it doesn’t appear prices will fall much if any this week.
- Choice boxed beef prices slipped 37 cents to $332.98 on Tuesday, while Select rose $1.14 to $318.71. Movement totaled 155 loads for the day.
- February live cattle are trading narrowly within consolidation range around the recent high, with initial resistance standing at $199.10, while initial support lies at $197.38 and is backed by the 10-day moving average of $196.11.
Hog futures are mostly firmer at midmorning.
- Nearby hog futures are correctively weaker following recent strength.
- The CME lean hog index is up 23 cents to $80.99 as of Jan. 13, the second straight daily gain after the recent string of losses.
- The pork cutout value rose a penny on Tuesday to $90.21, with primal loins carving the only gain on the day. Movement totaled 301.6 loads.
- February lean hogs are trading within Tuesday’s range, with resistance at the 40-day moving average of $84.13, while initial support lies at $83.05 and is backed by the 20-day moving average of $82.56.