Corn futures are around 4 cents lower at midmorning.
- Corn futures are edging lower for the fourth straight session amid technical pressure.
- Dr. Michael Cordonnier left his Brazilian corn crop forecast at 125 MMT with a neutral bias. He also maintained his Argentina forecast of 48 MMT.
- Farmers in Brazil’s most recent agricultural expansion in Bahia, Brazil are planting more cotton and less corn for 2024-25.
- Overnight, South Korea purchased 198,000 MT of corn in two separate tenders, with 133,000 MT to be sourced from the U.S., South America or South Africa and 65,000 MT to be sourced from the U.S. or South America.
- March corn futures are trading within Monday’s lower range, with support serving at $4.29 1/2, while resistance stands at the 40-day moving average of $4.33 1/2.
Soybeans are mostly 5 to 7 cents lower, while soymeal futures are around $3.50 lower. Soyoil is about 130 points higher.
- Soybean futures are edging sideways in directionless trade as meal weakness negates strength in soyoil.
- More rains fell across central Brazil last week and are forecast for dry southern areas this week. With the soybean crop off to a strong start, South American crop consultant Dr. Michael Cordonnier raised his Brazilian production forecast 2 MMT to 168 MMT. He maintains a neutral/higher bias. He maintained his Argentine forecast of 57 MMT.
- There is a strong likelihood Trump’s intended tariffs will provoke retaliatory measures from affected countries, particularly China and Mexico. Such responses could further escalate trade tensions and disrupt existing trade agreements like the U.S.-Mexico-Canada Agreement (USMCA).
- January soybean futures are consolidating between the 10-day moving average of $9.91 1/4 and support at $9.77.
Winter wheat futures are around 2 cents higher, while HRS futures are around 5 cents higher.
- Wheat futures posting modest short-covering gains.
- USDA rated the winter wheat crop 55% “good” to “excellent” and 12% “poor” to “very poor” in the final report for the fall. On the weighted Pro Farmer Crop Condition Index (0 to 500-point scale, with 500 being perfect), the HRW crop jumped 19.1 points to 339.3 amid notable increases in all states except Nebraska and South Dakota. The SRW CCI rating improved 8.1 points to 379.5, as all of the top seven production states increased except North Carolina. Click here for details.
- Weather this month was mostly favorable for the development of winter grain crops in Ukraine, but some of seedlings are still underdeveloped due to the extended drought, the country’s state weather forecaster said. “According to the assessment of meteorologists, the condition of plants before entering winter is mainly good, in some areas of the central and north-eastern regions - satisfactory,” analyst APK-Inform said.
- March SRW futures are trading mostly below the 10-day moving average of $5.62, which is backed by the 20-day, currently trading at $5.74 1/4. Initial support lies at Monday’s low of $5.50 3/4.
Live cattle are moderately higher while feeders are marking sharp gains.
- Nearby live cattle are notably higher amid firming cash and wholesale fundamentals.
- Cash cattle rose $1.60 to an average of $186.39 last week, snapping a three-week string of losses.
- Wholesale beef prices firmed $2.30 for Choice to $309.71 and $1.67 for Select to $273.74 on Monday. Movement totaled 126 loads.
- USDA’s Cold Storage Report showed frozen beef stocks at 431.9 million lbs. at the end of October, up 19.4 million lbs. from September, whereas the five-year average was a 15.5-million-lb. increase during the month. Beef inventories fell 13.8 million lbs. (3.1%) from year-ago and 47.3 million lbs. (9.9%) from the five-year average.
- December live cattle are trading within Monday’s lower range as the 40-day moving average of $186.43 serves up support, while initial resistance stands at $187.84.
Hog futures are moderately firmer at midmorning.
- December hog futures are posting gains amid support from rising pork values.
- The CME lean hog index is down another 40 cents to $88.09 as of Nov. 18.
- The pork cutout value rose $1.56 on Monday to $93.33 amid gains in all cuts except primal bellies. Movement totaled 277.5 loads.
- USDA’s Cold Storage Report showed Pork stocks totaled 426.0 million lbs., down 32.4 million lbs. from the previous month, which was nearly double the five-year average decline of 16.8 million lbs. during the month. Pork inventories fell 11.9 million lbs. (2.7%) from year-ago and 63.8 million lbs. (13.0%) from the five-year average.
- December lean hogs continue to face resistance at $82.49, while initial support lies at the 20-day moving average of $81.65.