Note: Due to Wednesday’s New Year’s holiday, export sales data for the week ended Dec. 26 will be published Friday morning.
Corn futures are mostly unchanged to a penny higher at midmorning.
- Corn futures are modestly firmer after rebounding from weaker trade earlier today.
- Corn-for-ethanol use is expected to total 463.7 million bu., up 3.2 million bu. (0.7%) from October and 6.5 million bu. (1.4%) above November 2023.
- Rising crop stress is expected in Argentina during the next two weeks with topsoil moisture already rated marginally adequate to short, according to World Weather Inc.
- March corn futures are facing resistance around $4.60, while support is layered at $4.56 and $4.54, with backing from the 10-, 200-, 20-, 40-, and 100-day moving averages.
Soybeans are mostly 3 to 6 cents higher, while soymeal futures are around $4.00 higher. Soyoil is around 30 points higher.
- Soybean futures rebounded after a weaker start as funds extend the short-covering rally from late December.
- Analysts surveyed by Bloomberg expect USDA to report November soybean crush totaled 208.1 million bu., which would be down 7.7 million bu. (3.6%) from the all-time record in October but up 8 million bu. (4.0%) from last year.
- Indonesia has yet to implement a higher mandatory blend of biodiesel planned for Jan. 1 as industry participants await technical details of the new regulation, causing confusion among palm oil traders. The government had pledged to mandate a 40% mix of palm oil-based fuel in biodiesel from Jan. 1, known as B40, from a 35% blend.
- March soybean futures pushed above the previous session high of $10.12, which is backed by the 100-day moving average of $10.19 1/2. Initial support lies at the 40-day moving average of $9.99 1/4 and is backed by the 20- and 10-day, currently trading at $9.90 and $9.85 1/4.
Wheat futures are mostly 3 to 5 cents lower.
- SRW wheat futures are edging lower amid persisting pressure from a strengthening U.S. dollar.
- Mexico said products including wheat, wheat flour and ammonium sulfate will be exempt from tariffs during 2025, according to a presidential decree.
- Egypt’s state grain buyer, Mostakbal Misr for Sustainable Development, received its first imported wheat shipment on Dec. 30, port data seen by Reuters showed. The 28,000-MT shipment arrived in Alexandria port onboard the Mikhail Nenashev. It is the first shipment for Mostakbal Misr, which took over Egypt’s supply of food commodities in December, replacing the General Authority for Supply Commodities that held the responsibility for decades.
- March SRW futures are trading mostly between the 10- and 20-day moving averages of $5.40 1/2 and $5.47 3/4, with additional support resistance at the Dec. 20 low of $5.29 1/4 and the 40-day moving average of $5.56 1/2.
Live cattle are moderately firmer while feeder are sharply higher at midsession.
- Nearby live cattle are firmer on support from the big discount they hold to the cash market.
- Given negative margins, packers aren’t expected to buy a lot of cattle this week, though cash sources expect prices to be no worse than steady with week-ago as feedlots have leverage. However, some cash sources feel packers are short-bought and may get more aggressive with bids.
- February live cattle are facing resistance at Tuesday’s high of $192.50, while initial support lies at $191.23.
Hog futures are moderately weaker at midmorning.
- Nearby hog futures are weaker, with fading cash and wholesale fundamentals weighing on prices.
- The CME lean hog index is down 8 cents to $84.27 as of Dec. 30, the third straight daily decline.
- The pork cutout dropped $4.02 on Tuesday to $90.30 amid sharp losses in all cuts except ribs.
- February lean hogs are hovering within Tuesday’s lower range, with support at the previous session low of $80.00, while initial resistance stands at $81.10