Corn futures are mostly a penny lower at midmorning.
- Corn futures are favoring the downside in narrow trade as technical support continues to limit selling efforts.
- Ethanol production averaged 1.102 million barrels per day (bpd) during the week ended Jan. 3, down 9,000 bpd (0.8%) from the previous week but up 40,000 bpd (3.8%) from the same week last year. Ethanol stocks rose 509,000 barrels to 24.148 million barrels.
- Overnight, South Korea purchased 140,000 MT of corn to be sourced from the U.S., South America or South Africa.
- March corn continues to hold in the consolidation near the recent highs, with initial support at the 10-day moving average of $4.54 1/2, while resistance is at Monday’s high of $4.60 1/4.
Soybeans are chopping around unchanged, while soymeal futures are $1.00 to $2.00 lower. Soyoil is about 20 points higher.
- Soybean futures are chopping around unchanged, as followthrough strength in soyoil is negating pressure from waning soymeal prices.
- USDA reported daily soybean sales of 120,000 MT to unknown destinations for 2024-25.
- Most of Brazil will receive rain during the next two weeks, although it will be lightest and least frequent in the far south, while rain in Argentina will remain limited in central and eastern parts of the country through the next ten days, according to World Weather Inc.
- USDA’s attaché in Argentina increased its estimates for the country’s soymeal and soyoil exports and production in 2024-25, while keeping soybean output and crush forecasts unchanged.
- March soybeans are pivoting around the 40- and 20-day moving averages, which have converged around $9.90. Resistance is at $10.01 3/4 and initial support is at the 20-day moving average of $9.90 1/4.
Wheat futures are mostly 5 to 8 cents lower at midmorning.
- Wheat futures continue to battle technical pressure and a soaring U.S. dollar.
- Cold weather in U.S. HRW wheat areas has not had a negative impact due to snow cover and that will likely continue to be the case through the next 10 days, notes World Weather.
- Overnight, South Korea purchased 65,000 MT of optional origin feed wheat, excluding Argentina, Russia, Pakistan, Denmark and China. Jordan tendered to buy up to 120,000 MT of optional origin milling wheat.
- March SRW futures continue to face resistance at the 10- and 20-day moving averages, currently trading at $5.41 1/4 and $5.44 1/2. Support lies at $5.31 1/2, then at last week’s low of $5.27 1/2.
Live cattle are mostly weaker while feeders are modestly to sharply lower at midsession.
- Nearby live cattle continue to be supported by strong technicals and recent cash cattle strength, though heavily overbought conditions are limiting buyer interest. Deferred contracts are facing light profit-taking pressure.
- Wholesale beef prices fell $1.31 for Choice to $325.79 and rose $2.10 for Select to $305.43 on Tuesday. Movement totaled 156 loads, signaling strong retailer demand. Packers have slowed slaughter runs in an attempt to improve margins, but persistent retailer demand could keep them from further slowing operations.
- As we reported in “Evening Report” on Tuesday, sources told us the U.S. is expected to reopen the border to Mexican cattle imports the week of Jan. 20. Meanwhile, USDA intensified its livestock import restrictions due to the growing presence of New World Screwworm (NWS) in Central America.
- February live cattle are trading within Tuesday’s range, with resistance at the previous session high of $196.625, while support lies at Tuesday’s low of $195.00.
Hog futures are slightly lower at midmorning.
- Nearby hog futures have forged a fresh for-the-move low amid technical pressure and a softening cash index.
- The CME lean hog index is down another 42 cents to $81.59 as of Jan. 6, extending the recent slide to seven consecutive days during which prices have fallen $3.51.
- The pork cutout value rose 57 cents on Tuesday to $88.40. Movement was strong at 435.6 loads.
- February lean hogs have edged to the lowest level since early October and below the 200-day moving average of $78.84. Additional support lies at $78.04, while resistance stands at $79.39.