Corn futures are mostly a penny to 3 cents lower at midmorning.
- Corn futures are pulling back from Monday’s gains.
- USDA reported daily corn sales of 110,000 MT to Colombia for 2024-25.
- South American crop consultant Dr. Michael Cordonnier kept his Brazilian and Argentine corn crop estimates at 125 MMT and 50 MMT, respectively. He holds a neutral bias toward the Brazilian crop and a neutral to lower bias for Argentina’s corn crop amid significant dryness across much of the country.
- March corn futures are trading within Monday’s range, with the 10-day moving average of $4.53 3/4 serving as support, while resistance stands at the previous session high of $4.60 1/4.
Soybeans are mostly 3 to 5 cents lower, while soymeal futures are around $5.00 to $6.00 lower. Soyoil is around 70 points higher.
- Soybean futures are facing pressure from selling in soymeal, though soyoil strength is underpinning the market.
- Cordonnier kept his Brazilian and Argentine soybean estimates at 171 MMT and 53 MMT, respectively. Cordonnier has a neutral to higher bias toward the Brazilian crop and a neutral to lower stance toward the Argentine crop.
- In central portions of eastern Argentina, southwestern Paraguay, southern and western Rio Grande dol and Uruguay, crop stress is expected to evolve and become a little more significant each day, with some partial relief expected Jan. 18-22, according to World Weather Inc.
- March soybeans are facing resistance at the 40-day moving average of $9.97 1/4, while the 20-day moving average of $9.90 is initial support.
Wheat futures are mostly 2 to 5 cents higher.
- Wheat futures are posting modest short-covering strength despite a firmer U.S. dollar as crop conditions falter in the U.S.
- State-level winter wheat crop condition ratings signaled general deterioration in the HRW crop during December, led by top producer Kansas and Nebraska. On the weighted Pro Farmer Crop Condition Index (0 to 500-point scale, with 500 being perfect), the HRW crop declined 9.0 points from the end of November to 330.3.
- Precip will be limited in U.S. HRW wheat areas over the next seven days, though any precip that does occur will be mostly snow. World Weather notes snow cover will be important for the region in the second week of the outlook due to a likely significant surge of arctic air after Jan. 16.
- March SRW futures are facing resistance at the 20-day moving average of $5.45 3/4, while support remains at $5.32 1/2.
Live cattle are moderately firmer while feeders are sharply higher at midsession.
- Nearby live cattle are firmer as traders narrow the discount to the cash market, though overbought conditions are somewhat limiting buying.
- Cash cattle averaged a record $198.93 last week, up $4.12 from the previous week and the seventh straight gain. During that span, cash prices jumped more than $14.00, despite packer margins being deeply in the red.
- Boxed beef prices rose on Monday, with Choice up $1.86 to $327.10, while Select surged $6.61 to $303.33. Movement totaled 146 loads.
- February live cattle are trading within Monday’s range, with initial support/resistance at $194.43 and $196.15.
Hog futures are favoring the downside at midmorning.
- Nearby hog futures are lower amid hovering from the declining cash fundamentals.
- The CME lean hog index is down another $1.11 to $82.01 as of Jan. 3, marking the sixth straight daily decline and the biggest drop since August.
- The pork cutout fell $1.71 on Monday to $87.83, as all cuts except bellies posted sharp losses.
- February lean hogs are facing support at the 200-day moving average of $78.85, while initial resistance stands at $80.03 and is backed by the 100-day moving average of $80.96.