Corn futures are mostly 5 to 8 cents higher at midmorning.
- Corn futures have rebounded from earlier lows, in tandem with soybeans amid easing risk-off sentiment as President Donald Trump reportedly agreed to delay tariffs on Mexico by a month. Markets will continue to track the very fluid and price-impacting tariffs situation that also includes Canada and China, and possibly the European Union.
- Brazil rain will continue to be frequent and significant from Mato Grosso into Sao Paulo and parts of Parana early this week, delaying soybean harvest and safrinha corn planting. Rainfall intensity and coverage are expected to lighten across central Brazil next week.
- China’s state stockpiler Sinograin said it plans to add new stockpiling sites in northeast China to expand purchases of domestic corn harvested in 2024. Sinograin will publicize further details of the new stockpiling program at a later date that cover the provinces of Heilongjiang, Jilin and Liaoning.
- USDA reported corn export inspections of 1.25 MMT (49.3 million bu.) for the week ended Jan. 30, up 1,281 MT from the previous week and within pre-report expectations from 1.0 MMT to 1.4 MMT.
- March corn futures have rebounded from the drop below the 20-day moving average, currently trading at $4.77 3/4, and are testing resistance at $4.89 3/4.
Soybeans are 10 to 17 cents higher, while soymeal futures are around $2.00 firmer. Soyoil is around 40 to 50 points higher.
- Soybean futures are notably firmer in a rebound from price pressure overnight.
- Brazil’s soybean harvest was 9% complete as of last Thursday, according to AgRural, behind 16% on that date last year.
- Argentina’s main crop areas are forecast to receive needed rains during the middle of this week, though a period of hotter, drier conditions will follow. Another rain event is likely for next week, though rains will likely be lighter and more scattered.
- USDA reported soybean export inspections of 1.01 MMT (37.2 million bu.) for the week ended Jan. 30, up 275,264 MT from the previous week and near the upper end of the pre-report range of expectations from 400,000 MT to 1.25 MMT.
- March soybeans have rebounded from a drop below the 20-day moving average of $10.37 1/4, with resistance remaining at $10.60 1/2.
Wheat futures are 7 to 13 cents higher, led by SRW contracts.
- SRW wheat futures have taken back Friday’s losses, though resistance at the 100-day moving average is curbing more robust buyer interest.
- Australia produced around 2 MMT more wheat in 2024-25 than was estimated during the harvest, according to four analysts polled by Reuters. Their estimates now range from 32 MMT to 35.5 MMT, up from 29 MMT to 34.5 MMT they predicted in November. Their estimates are all above the Australian government’s forecast of 31.9 MMT.
- USDA reported wheat export inspections of 252,637 MT (9.3 million bu.) for the week ended Jan. 30, down 231,907 MT from the previous week and just within the pre-report range of expectations from 250,000 to 450,000 MT.
- March SRW futures are testing resistance at the 100-day moving average of $5.72 1/2.
Live cattle are mostly firmer, while feeders are posting sharp losses at midmorning.
- Price action has been volatile to kick off the week as traders weigh market fundamentals against an uncertain trade picture.
- USDA estimated there were 86.662 million head of cattle in the U.S. as of Jan. 1, down 495,000 head (0.6%) from last year and the lowest since 1951.
- USDA’s Animal and Plant Health Inspection Service (APHIS) is set to resume cattle and bison imports from Mexico in the coming days, following a temporary suspension due to a New World screwworm (NWS) outbreak. Under the new measures, designated pre-export inspection pens in Chihuahua and Sonora have been approved, where cattle and bison will undergo multiple veterinary inspections and insecticide treatment before entering the U.S. through the Santa Teresa and Douglas Ports of Entry.
- Wholesale beef values rose on Friday, with Choice up 20 cents to $327.68, while Select rose $1.17 to $317.07. Movement was light at 90 loads.
- April live cattle are finding initial support at $200.97, while resistance stands at the previous session high of $203.00.
Hog futures are mixed at midsession, with sharp losses in deferred contracts.
- Nearby lean hog futures are modestly higher with support from continued strength in the cash index.
- The CME lean hog index is up another 42 cents to $83.48 as of Jan. 30, extending the rise from the seasonal low in early January.
- The pork cutout value rose $1.82 to $94.75 on Friday amid gains in all cuts aside from primal loins. Movement totaled 282.4 loads.
- April lean hogs gapped lower at the open and have tested the 100-day moving average, currently trading at $87.26, though the area continues to serve as support. Meanwhile, resistance stands at the intraday high of $89.575.