Note: Due to Monday’s government holiday, export sales data for the week ended Jan. 16 will be released on Friday.
Corn futures are around 3 to 7 cents higher at midmorning.
- Corn futures are supported by technical buying and looming supply unknowns as South American weather raises production doubts.
- World Weather Inc. states recent rains in Argentina were welcome and beneficial for crops, but much more is needed. Scattered showers and thunderstorms in the coming week will offer a temporary reprieve from dry conditions.
- A boost in rain in center-west and center-south production areas of Brazil during the middle to latter part of next week into the first full week of February will induce delays to soybean harvest and also lead to delays in safrinha corn crop plantings.
- March corn futures are facing resistance at Wednesday’s high of $4.92 1/4, which is backed by $4.96. Meanwhile, initial support is at $4.80 1/2.
Soybeans are mostly 9 cents higher, while soymeal futures are around 50 cents firmer. Soyoil is around 60 points higher.
- Soybean futures are recouping most of Wednesday’s losses, with strength in corn lending support.
- Archer-Daniels-Midland Co. halted loading of grain vessels at U.S. Gulf terminals as the region’s worst snowstorm in 130 years slams the region. The company declared force majeure in southern Louisiana with vessels struggling to navigate the weather conditions, Bloomberg reported Wednesday evening, citing a person familiar with the matter.
- China has stopped receiving Brazilian soybean shipments from five firms after cargoes did not meet plant health requirements, according to a statement from the Brazilian government, confirming what we reported on Wednesday. Brazil’s ag ministry said only a small volume of soybeans were affected and the impact on the country’s exports was minimal.
- March soybeans bounced from an earlier test of support at $10.47 1/2. Near-term resistance is layered from $10.69 to Wednesday’s high of $10.73 1/2.
SRW wheat futures are around a penny higher, while HRW and HRS futures are mostly 2 to 3 cents lower.
- SRW wheat futures are modestly firmer, with strength in corn and soybeans offsetting pressure from a firmer U.S. dollar.
- A new arctic air mass could arrive in HRW wheat areas of the U.S. within the Feb. 2-6 timeframe, though confidence in the significance of this event is a little low. However, there may be a need for new snow cover to protect crops from the associated cold temps.
- Overnight, Indonesia passed on a tender to buy 195,000 MT of feed wheat and instead purchased an unspecified amount of corn from the Asian region.
- March SRW futures bounced from support at $5.48, which is closely backed by the 40-day moving average of $5.46 1/2. Initial resistance stands at $5.57 1/2 and is backed by $5.63 1/4.
Live cattle and feeders are modestly firmer at midsession.
- Nearby live cattle have extended to a fresh contract amid technical and fundamental support.
- Wholesale beef prices declined on Wednesday, with Choice falling a modest 3 cents to $332.02, while Select slid $1.56 to $317.99. Movement totaled 139 loads for the day.
- As of Jan. 23, the import of live cattle from Mexico to the U.S. remains suspended due to the detection of New World screwworm (NWS) in southern Mexico. The ban, implemented on Nov. 22, 2024, is still in effect with no definite date set for its lifting.
- February live cattle have edged to a fresh contract high, marking an all-time high on the continuation chart. Resistance is at $201.12. Initial support lies at $199.08.
Hog futures are mostly lower at midmorning.
- Nearby hog futures are chopping around unchanged as technical resistance and pressure in wholesale values negate a firming cash index.
- The CME lean hog index is up another 26 cents to $81.72 as of Jan. 21, the eighth straight daily gain. During that span, the index has risen $1.29.
- The pork cutout declined 65 cents on Wednesday to $90.17, as weaker prices for loins, butts, picnics and bellies more than offset gains in ribs and hams.
- February lean hogs are being limited by the 20- and 100-day moving averages, currently trading at $81.88 and $81.95, while initial support at $81.08.