Corn futures are mostly 2 to 3 cents higher at midmorning.
· Corn futures are extending Monday’s gains on followthrough strength, with an assist from rallying wheat and crude oil.
· USDA reported daily corn sales of 195,000 MT to unknown destinations for 2024-25.
· USDA rated the corn crop as 64% “good” to “excellent,” down one point from a week ago, while the portion rated “poor” to “very poor” stood at 12%. On our weighted Pro Farmer Crop Condition Index (CCI; 0 to 500-point scale, with 500 representing perfect), the corn crop inched up 0.1 point to 366.1. Click here for details.
· Crop consultant Dr. Michael Cordonnier kept his U.S. corn yield and production forecasts at 182.5 bu. per acre and 15.09 billion bu., respectively. He has a neutral bias going forward.
· BNSF Railway will resume issuing permits for grain shuttles heading to Mexico today, the company told Reuters. In late August, BNSF stopped issuing permits for grain shuttle trains going into Mexico, in part because booming demand outstripped the system’s capacity, creating heavy congestion and a growing backlog of loaded trains.
· Corn-for-ethanol use is expected to total 469.0 million bu. for August, down 4.5 million bu. (1.0%) from July but up 27.3 million bu. (6.2%) from last year.
· December corn futures are testing resistance at the 100-day moving average of $4.28 3/4, while initial support lies at $4.22 1/2 and is backed by $4.17 1/2.
Soybeans are mostly a penny lower, while soymeal futures are $5.00 to $7.00 higher. Soyoil is narrowly mixed.
· Soybeans have moved well off their earlier lows on support from strength in soymeal strength.
· USDA reported daily soybean sales of 120,000 MT for delivery to unknown destinations for 2024-25.
· USDA rated the soybean crop as 64% “good” to “excellent” and 11% “poor” to “very poor.” On our CCI, the soybean crop improved 1.4 points to 359.9.
· Cordonnier trimmed his U.S. soybean yield 0.5 bu. to 51.5 bu. per acer, noting continued dryness in the central and western Corn Belt and potential for crop damage due to Hurricane Helene. That reduced his production estimate to 4.44 billion bu. This marked Cordonnier’s third straight weekly decline for the crop and maintained a neutral to lower bias.
· Analysts expect USDA to show soybean crush slowed to 167.3 million bu. in August, down 26.1 million bu. (13.5%) from July and 1.7 million bu. (1.0%) below last year.
· Center west and center south Brazil will continue missing significant rainfall for another week, according to World Weather Inc, though a few spotty showers will be possible.
· November soybeans are facing support at the 10-day moving average of $10.39 1/4, while resistance stands at $10.59 1/2 and $10.67 1/4.
Winter wheat futures are mostly 11 to 14 cents higher, while HRS futures are around a dime higher.
· SRW wheat futures have jumped to a more than two-week high as global supply uncertainties continue to support the market.
· USDA reported 39% of the winter wheat crop was planted, one point ahead of average, while 14% had emerged.
· Russia’s Southern Region, Eastern Ukraine and western Kazakhstan will remain quite dry for the next 10 days, while other winter crop areas in Russia will benefit from expected showers in the coming two weeks, notes World Weather.
· Ukrainian grain exports fell 16% from August to 3 MMT in September, according to the UAS farm business association, as farmers hesitate to sell immediately after harvest at low prices.
· December SRW wheat futures have moved above resistance at $5.91 1/4, with resistance now standing at $5.98 3/4 and $6.00. Initial support lies at the 10- and 20-day moving averages of $5.80 1/2 and $5.78 3/4.
Live cattle and feeders are firmer at midmorning.
· Nearby live cattle are mildly higher, with support from firming cash fundamentals.
· Packers purchased a large amount of cattle again last week and have fresh contracted supplies available with the flip of the calendar. Cash sources note packers are better positioned on near-term slaughter needs, which could lead to less aggressive bidding in the cash market, though feedlots have little incentive to move cattle at lower prices.
· Wholesale beef prices jumped on Monday, with Choice rising $1.39 to $298.08, while Select gained $2.45 to $284.53. Movement was light, however, at 102 loads.
· December live cattle are holding in the choppy-to-higher pattern. Resistance is at $185.60. Support is at $183.00.
Hog futures are moderately to sharply higher at midsession.
· October hog futures are notably higher despite persisting cash weakness.
· The CME lean hog index is down 2 cents to $84.01 as of Sept. 27. October lean hog futures continue to run at $1.00-plus discount indicating traders anticipate the cash index will continue to slide into mid-October.
· The pork cutout value rose 9 cents on Monday to $95.84. Movement totaled 250.4 loads for the day.
· October lean hogs have notched the highest intraday level since Sept. 4, though resistance at $83.375 stands as resistance, while the 10-day moving average of $80.90 continues to provide support.