Corn futures are around 3 to 6 cents higher at midmorning.
- Corn futures are firmer amid a rebound in the wake of selling in the past two sessions.
- USDA reported daily corn sales of 132,000 MT to South Korea for 2024-25.
- South American crop consultant Dr. Michael Cordonnier trimmed his Argentine corn crop estimate by 1 MMT to 47 MMT and maintained his Brazilian crop estimate at 125 MMT. He has neutral to lower bias toward both crops going forward. Cordonnier estimates roughly 30% to 40% of the safrinha crop will be planted after the ideal window due to soybean harvest delays.
- Mexican President Claudia Sheinbaum has proposed a constitutional amendment to ban the cultivation of genetically modified (GM) corn in the country. This move is a significant development in Mexico’s ongoing efforts to protect its native corn varieties and food sovereignty.
- March corn futures are trading above the 10-day moving average of $4.82 3/4, which is now support, while resistance stands at $4.88 1/2.
Soybeans are 1 to 2 cents higher in most contracts, while soymeal futures are around $1.50 higher. Soyoil is modestly lower.
- Soybean futures are modestly firmer, with a stronger U.S. dollar and technical resistance are limiting buying.
- Cordonnier lowered his Argentine soybean crop estimate 2 MMT to 49 MMT amid stress from hot, dry conditions. He maintained his Brazilian soybean crop estimate at 170 MMT.
- China’s stocks, bond, foreign exchange and commodity futures markets will be closed from today through Tuesday, Feb. 4, for the Lunar New Year holiday. Other Asian markets also observe varied market closures for Lunar New Year celebrations.
- March soybeans are being limited by resistance at the 10-day moving average of $10.48 3/4, which is backed by $10.50 1/2. Initial support lies at $10.39 1/2.
Wheat futures are 6 to 11 cents higher, with SRW contracts leading gains.
- Wheat futures are taking back Monday’s losses, though a firmer dollar and technical resistance remain limiting factors.
- A rain event with some pockets of snow is expected in HRW wheat areas Wednesday through Thursday, according to World Weather. Most areas aren’t expected to get a lot of rain, though what does fall will be useful for the upcoming spring season.
- Overnight, Tunisia tendered to buy 100,000 MT of soft milling wheat and 100,000 MT of durum wheat—all optional origin.
- March SRW futures are challenging resistance at the 20-day moving average of $5.43 1/4, which is backed by the confluence of the 40- and 10-day moving averages, each trading around $5.46.
Live cattle and feeders are posting strong gains at midsession.
- Nearby live cattle are being supported bullish fundamentals and a solid technical posture.
- Cash cattle averaged a record 209.19 last week, up $5.52 from the previous week and the tenth straight weekly gain.
- Wholesale beef values firmed on Monday, with Choice rising $2.16 to $330.08, while Select surged $4.26 to $320.55, narrowing the Choice/Select spread to $9.53.
- April live cattle have extended to a contract high, with resistance now at psychological levels, starting at $207.00, while support starts at Monday’s high of $205.55.
Hog futures are moderately higher at midmorning.
- Lean hog futures are higher for the third straight session amid support from firming cash and wholesale fundamentals.
- The CME lean hog index is up 2 cents to $81.94 as of Jan. 24.
- The pork cutout firmed $1.47 to $93.16 on Monday, the highest since Dec. 30, led by strong gains in butts, ribs and loins. Wholesale pork prices have been strong enough to keep packer margins in the black, which is helping support the cash market’s move off the seasonal lows.
- April lean hogs are testing resistance at $91.07. Support lies at Monday’s close of $89.875.