Corn futures are mostly 5 to 7 cents lower at midmorning.
- Corn futures are facing notable weakness following strong gains over the past two weeks.
- USDA reported net corn export sales of 777,000 MT for 2024-25, down 55% from the previous week and 44% from the four-week average. Increases came primarily for Mexico and Japan. Sales were below expectations, ranging from 800,000 MT to 1.4 MMT. Exports totaled 1.003 MMT.
- Southern Brazil’s drying trend will become significant enough to induce some crop moisture stress for crops in Rio Grane do Sul into Paraguay and some neighboring areas of southwestern Parana and Santa Catarina during the next 10 days to two weeks, according to World Weather Inc.
- March corn futures are testing support at the 10-day moving average of $4.51 1/4, which is backed by the 200-day moving average of $4.49. Resistance stands at Thursday’s high of $4.59 3/4.
Soybeans are mostly 17 to 19 cents lower, while soymeal futures are around $10.00 lower. Soyoil is around 40 points lower.
- Soybean futures are under pressure amid heavy selling in soymeal and tepid export sales.
- USDA reported net weekly sales of 484,700 MT for 2024-25 — a marketing year low, down 51% from the previous week and 67% from the four-week average. Increases came primarily for China. Sales were below expectations ranging from 500,000 MT to 1.2 MMT. Exports totaled 1.704 MMT, with the bulk of the total being shipped to China.
- India’s palm oil imports in December plunged 40% from the previous month to 503,000 MT – the lowest in nine months – as a rally in prices to a 2-1/2-year high prompted refiners to increase purchases of soyoil. India’s soyoil imports last month rose 3% from November to 420,000 MT, the highest in four months.
- Indonesia’s Energy and Mineral Resources Minister signed a decree on Friday allocating 15.6 million kiloliters (KL) of biodiesel for 2025 distribution, while giving the industry until the end of next month to adapt to the higher 40% blend (B40) of the fuel.
- March soybean futures are finding support at the 20- and 10-day moving averages, which have nearly converged around $9.90. Meanwhile, the 100-day moving average of $10.18 3/4 is acting as solid resistance.
Wheat futures are mostly 10 to 14 cents lower.
- Wheat futures are lower despite U.S. dollar weakness amid weaker export sales.
- USDA reported weekly sales of 140,600 MT for 2024-25 — a marketing-year low, down 77% from the previous week and 68% from the four-week average. Sales were below expectations ranging from 200,000 to 500,000 MT. Exports totaled 381,900 MT.
- Cooling has returned to the Great Plains and U.S. Midwest, which should restore better winter hardiness, notes World Weather. Bitter cold is expected during the middle of next week, which may raise some concern, though snow should precede the cold.
- March SRW futures have extended to the lowest level since Dec. 20, with support at the December low of $5.29 1/4, while resistance stands at the 20-day moving average of $5.47 1/2.
Live cattle are firmer, with nearby futures posting sharp gains, while feeders are mildly firmer.
- Nearby live cattle have soared to a fourteen-and-a-half month high, with strength stemming from the strong cash cattle market.
- Cash cattle trade turned active Thursday afternoon with prices generally $2 to $4 higher than week-ago. That suggests the cash market could challenge the all-time high average price of $197.09 posted in early July.
- Boxed beef prices slipped on Thursday, with Choice falling 74 cents to $323.48, while Choice dipped 29 cents to $294.23. Movement totaled 116 loads for the day.
- February live cattle have edged to the highest level since October 2023, with next resistance at $197.00, while initial support lies at $194.85.
Hog futures are posting heavy losses at midmorning.
- Nearby hog futures are weaker amid persisting weakness from fading cash and wholesale fundamentals.
- The CME lean hog index is down another 28 cents to $83.99 as of Dec. 31, the fourth straight daily decline, though 66 cents above the December low.
- The pork cutout fell 98 cents to $89.32 on Thursday, 68 cents above its low last month.
- February lean hogs have extended below the 100-day moving average of $80.76 and $80.16, with support now at the 200-day moving average of $78.86.