Corn futures are around 2 to 5 cents lower at midmorning.
- Corn futures are lower on corrective selling after strong gains Wednesday, with weakness in the soy complex adding pressure.
- USDA reported corn export sales of 1.36 MMT for the week ended Jan. 30, which were down 18% from the previous week but up 39% from the four-week average. Net sales were within the pre-report range of expectations from 850,000 MT to 1.8 MMT.
- Dry weather is returning to Brazil next week, which should be well timed and help promote drying to advance soybean harvest and safrinha corn planting, according to World Weather Inc.
- March corn futures are trading within Wednesday’s upper range, with resistance at the previous session high of $4.97 1/2, while support lies at $4.88 3/4 and backed by the 10-day moving average of $4.84 3/4.
Soybeans are 8 to 14 cents lower, while soymeal futures are nearly $5.00 lower. Soyoil is around 15 points lower.
- Soybean futures are facing corrective selling amid weak export sales and improving South American weather prospects.
- USDA reported soybean export sales of 438,800 MT for the week ended Jan. 23, down 71% from the previous week and 33% from the four-week average. Net sales were shy of the pre-report range of 450,000 MT to 1.7 MMT.
- A cargo of Louis Dreyfus Company soymeal destined for export from the southern Brazilian port of Paranagua was returned for reprocessing at one of the company’s local plants, the firm told Reuters. A person with knowledge of the matter said the soymeal was sent by trucks to the port and subsequently rejected last week for containing impurities.
- March soybeans are pivoting around the 10-day moving average, with initial support at $10.38 1/4. Resistance stands at $10.55 1/2, then at $10.66 1/2.
Wheat futures are 4 to 6 cents higher at midmorning.
- Wheat futures are higher for the third straight session, supported by long corn/short wheat spread unwinding. A weaker U.S. dollar and global supply concerns are also helping spur short-covering.
- USDA reported wheat export sales of 456,100 MT for the week ended Jan. 23, up notably from the previous week and 96% from the four-week average. Net sales were near the upper end of the pre-report range of expectations from 150,000 to 500,000 MT.
- Ag consultancy SovEcon lowered its 2024-25 Russian wheat export forecast by 900,000 MT to 42.8 MMT. The revision reflects the persistently slow shipment pace and challenging export conditions. USDA cut its Russian wheat export forecast by 1 MMT earlier this month to 46 MMT.
- As of Jan. 29, Ukraine’s 2024-25 grain exports stood at 25.35 MMT, up 2.2 MMT (9.5%) from the same period last year.
- India is forecast to see above-average temperatures in February, with key winter crop-growing states likely to see maximum temperatures up to 5 degrees Celsius above average, two weather bureau sources said. Maximum and minimum temperatures in northern, central and eastern states are likely to be above normal in February, said a senior official at the India Meteorological Department. Higher temperatures during the grain formation stage could reduce wheat yields for the fourth straight year, trimming overall production.
- March SRW futures are facing resistance at $5.70, which is backed by the 100-day moving average of $5.73 1/4, while initial support lies at $5.57 1/4.
Live cattle and feeders are posting moderate losses at midsession.
- Nearby live cattle are notably lower in an extension of Wednesday’s corrective selling following a run to all-time highs earlier this week.
- Packers have been slow to establish cash cattle bids for the week, while feedlots want higher prices again. After surging $24.40 during a 10-week span of gains, cash cattle prices may decline this week, though it’s unlikely they will fall much as feedlots are current.
- Wholesale beef values dipped on Wednesday, with Choice down $1.91 to $330.54, while Select fell $1.29 to $320.67. Movement improved to 160 loads.
- USDA reported net beef sales of 20,200 MT for 2025.
- April live cattle are extending Wednesday’s selling, with support at $202.58, while resistance stands at $205.68.
Hog futures are moderately higher at midmorning.
- Lean hog futures are continuing higher amid support from firming cash fundamentals and solid technical posture.
- The CME lean hog index is up another 48 cents to $82.59 as of Jan. 28, marking the biggest daily gain during the rise over the past three weeks. The index is now $2.16 off the Jan. 9 seasonal low.
- The pork cutout value rose 45 cents on Wednesday to $93.31. Movement totaled 286.9 loads.
- USDA reported weekly pork sales of 33,600 MT for 2025.
- April lean hogs pushed above resistance at Wednesday’s high of $92.50, reaching the highest level since Dec. 1. Initial support lies at $90.32.