Corn futures are around 5 to 10 cents higher at midmorning.
- Corn futures have rallied to an eight-month high, with support from looming concerns around South American production.
- Delayed safrinha corn planting progress in Brazil is a persisting concern, with more disruptions to fieldwork expected from Thursday to early next week, according to World Weather Inc. Drying is expected late next week and into the following weekend and will be important for safrinha corn. There are also production concerns amid extended moisture stress in Argentina.
- Ethanol production averaged 1.015 million barrels per day (bpd) during the week ended Jan. 24, down 84,000 bpd (7.4%) from the previous week but 24,000 bpd (2.4%) above the same week last year. Ethanol stocks declined 152,000 barrels to 25.722 million barrels.
- March corn futures have pushed above last week’s high, with initial resistance now at $4.97 1/2, while support lies at the 10-day moving average of $4.85.
Soybeans are 12 to 14 cents higher, while soymeal futures are nearly $6.00 higher. Soyoil is around 10 points higher.
- Soybean futures are firming along with corn and soymeal, amid concerns about South American weather conditions.
- World Weather Inc. reports excessive heat and stressful conditions for crops will occur in advance of the rain in central and northern Argentina, along with some northwestern areas.
- Persisting rains in central Brazil will keep soybean harvesting behind normal and could lead to some crop quality issues.
- March soybeans have extended above the 10-day moving average of $10.48 3/4, with resistance no serving at $10.59 3/4. Support lies around $10.45, then at $10.40.
Winter wheat futures are 12 to 16 cents higher, while HRS futures are around a dime higher.
- SRW wheat futures are posting solid followthrough gains, despite a firmer U.S. dollar, amid short-covering and support from firming corn.
- A mild winter with record warm temperatures in many agricultural regions of Russia is helping winter crops to survive, state weather agency chief Roman Vilfand said. But the weather agency estimates a record 38% of winter crops are in poor condition due to drought. Russian Agriculture Minister Oksana Lut earlier said 82% of winter crops were in good and satisfactory condition, far above the weather agency’s number due to differences in methodology and timing of data collection.
- Russia’s grain export potential for 2024-25 is 57 MMT, compared with record shipments of 72 MMT the previous season, Agriculture Minister Oksana Lut said. Russia’s grain exports reached 37 MMT during the first half of 2024-25, forcing Moscow to set lower quotas for the second half of the year “to ensure internal needs are met.”
- March SRW futures are testing resistance at $5.57 1/2, while support lies at the 20-day moving average of $5.43 1/2.
Live cattle and feeders are sharply lower at midsession.
- Front-month cattle futures have scored a contract high for a sixth consecutive session before weakening.
- Live cattle have turned lower amid corrective selling in the wake of a recent string of strong gains, despite their discounts to the cash market.
- Wholesale beef prices continued to climb on Tuesday, with Choice up $2.37 to $332.45, while Select rose $1.41 of $321.96. Movement totaled 126 loads.
- April live cattle are trading within Tuesday’s broad range, limited by the previous session’s high of $207.725, while support lies at $204.91 and Tuesday’s low of $203.95.
Hog futures are higher at midmorning.
- Lean hog futures are extending recent gains on support from a solid technical posture and improving cash fundamentals.
- The CME lean hog index is up another 17 cents to $82.11 as of Jan. 27, extending the recent rebound from seasonal lows.
- The pork cutout value fell 30 cents on Tuesday, with losses in primal loins, butts and ribs offsetting gains in primal bellies. Movement totaled 335.3 loads.
- April lean hogs have extended to the highest level since Dec. 9, challenging resistance at $91.95, while support is layered from $90.65 to $90.13.