Note: Government offices and the U.S. stock exchanges are closed today for a National Day of Mourning for President Jimmy Carter’s funeral. Grain and livestock markets will close at 12:15 p.m. CT.
Corn futures are unchanged to a penny lower at midmorning.
- Corn futures are holding near unchanged in narrow trade ahead of Friday’s USDA Reports.
- Overnight, South Korea purchased 65,000 MT of corn expected to be sourced from the U.S. or South America.
- World Weather Inc. states all forecast models overnight were promoting scattered showers and thunderstorms across Argentina at the end of next week. Some of the rain is expected to reach into Uruguay, far southern Brazil and Paraguay as well.
- March corn is hovering around the 10-day moving average of $4.55 1/4, with initial support at Wednesday’s low of $5.53 1/2.
Soybeans are mostly 2 to 4 cents lower, while soymeal futures are around $1.00 to $2.50 lower. Soyoil is around 25 points higher.
- Soybean futures are slightly weaker, with meal providing spillover pressure.
- China will accelerate the breeding of new soybean and corn varieties and prioritize yield improvements for key grains and oil crops, as part of broad efforts to ensure food security, the agriculture ministry said. Focus will be on five key crops - corn, rice, wheat, soybeans and rapeseed - and the better use and coordination of good land, high quality seeds, machinery and farming practices.
- Indonesia said its exports of used cooking oil (UCO) and palm oil residue in recent years had exceeded production capacity, indicating crude palm oil (CPO) had been mixed in, prompting it to issue regulation curbing shipments. The new regulation, which takes effect immediately, requires all exporters of palm oil residue and UCO, including palm oil mill effluent (POME), to acquire an export allocation from the government.
- March soybeans are trading mostly between the 20-day moving average of $9.89 1/2 and the 20- and 40-day moving averages, currently trading at $9.89 1/2 and $9.95.
Wheat futures are mostly 5 to 7 cents lower at midmorning.
- SRW wheat futures continue to consolidate within last Friday’s trading range.
- World Weather Inc. reports Ukraine, Russia’s Southern Region or western Kazakhstan are unlikely to see threatening cold anytime soon. Recent precipitation does set the stage for improved crop conditions in the early spring, though more precipitation is still desired, especially from Ukraine into Kazakhstan.
- Overnight, Taiwan purchased 114,650 MT of U.S. milling wheat.
- March SRW futures have extended below support at $5.32 1/4, with additional support at $5.28 1/4. Initial resistance remains at the 10-, 20- and 40-day moving averages of $5.40 1/4, $5.42 1/2 and $5.50 1/4.
Live cattle are posting moderate- to strong gains while feeders are sharply higher at midsession.
- Nearby live cattle are posting strong corrective gains in the wake of Wednesday’s losses amid supportive cash trade and wholesale values.
- Cash cattle trade remains light to start the week, though early trade indicates another weekly increase is likely.
- Wholesale beef prices firmed $2.82 to $328.61 while Select rose $1.46 to $306.89 on Wednesday. Movement was strong at 181 loads, including 120.55 loads of Choice cuts, signaling strong retailer demand despite high prices.
- February live cattle are trading within Wednesday’s range, limited by resistance at the previous session high of $196.35, while initial support lies at $194.51.
Hog futures are posting strong gains at midmorning.
- Nearby hog futures are sharply higher after extending to a more than three-and-a-half month low on Wednesday.
- The pork cutout rose $2.13 on Wednesday to $90.53 as all cuts except ribs firmed. That was the second straight daily gain after the cutout fell to a new seasonal low on Monday. Movement topped 400 loads for a third consecutive day.
- The CME lean hog index continues to fall seasonally, dropping another 54 cents to $81.05 as of Jan. 7.
- February lean hogs gapped higher at the open, extending above the 100- and 10-day moving averages of $81.15 and $81.37, with resistance now at the 20-day moving average of $82.84. Initial support lies at $80.03.