Note: Due to Monday’s government holiday, export sales data for the week ended Oct. 10 will be released Friday morning.
Corn futures are 3 to 5 cents lower at midmorning.
· Corn futures are lower along with soybean and wheat futures as persisting U.S. dollar strength casts a shadow over commodities.
· USDA reported daily corn sales of 298,180 MT, of which 197,180 MT were to Mexico and 101,000 MT to unknown destinations, both for 2024-25.
· Ethanol production averaged 1.042 million barrels per day (bpd) during the week ended Oct. 11, up 4,000 bpd (0.4%) from the previous week and 7,000 bpd (0.7%) above last year. Ethanol stocks rose 121,000 barrels to 22.275 million barrels.
· Gevo, Inc. secured a conditional commitment for a $1.46 billion loan from the U.S. Department of Energy (DOE) Loan Programs Office for its Net-Zero 1 project. This represents the first-ever large-scale alcohol-to-jet project to receive such a commitment from DOE and aligns with the growing demand for sustainable aviation fuel (SAF) and the aviation industry’s efforts to reduce its carbon footprint.
· December corn futures are finding support at $3.98 1/2, while resistance stands at $4.04 1/4 and again at $4.07 1/4.
Soybeans are mostly 7 to 9 cents lower, while soymeal futures are $1.00 to $2.50 lower. Soyoil is modestly higher.
· Soybeans continue to face pressure from the rapid harvest and technical selling.
· U.S. Midwest crop areas may trend a little wetter next week into the following weekend, although changes in soil moisture are unlikely to be much for a while, notes World Weather Inc.
· China’s ag ministry reported 69.5% of the autumn grain harvest had been reaped across the country, two points faster than year-ago. Around 83% of the country’s soybeans had been harvested so far, according to the ministry.
· November soybean futures have extended below support at $9.71 1/2 for the first time since Aug. 26, with additional support at $9.63 1/4. Initial resistance stands at $9.86 1/2.
Winter wheat futures are 5 to 7 cents lower, while HRS futures are a penny to 3 cents lower.
· Wheat futures are weaker amid technical pressure, though near-term oversold conditions are curbing the downside.
· Rain is expected to bring relief to dryness in U.S. HRW wheat areas Friday into Monday that should help induce better emergence and crop establishment, with locally heavy rains likely in some areas.
· Russia has granted Kazakhstan permission to transit grain through its territory for export to other countries starting today but imposed a temporary ban on Kazakh grain imports to Russia, its agricultural watchdog said.
· December SRW futures continue to find support at the 40-day moving average of $5.75 3/4 while resistance remains at the 20-, 10- and 100-day moving averages of $5.89 1/2, $5.90 1/2 and $5.91 3/4.
Live cattle are weaker while feeders mostly higher at midmorning
· Live cattle futures are choppy with a downside bias as traders await direction from the cash market. Feeders are higher due to weakness in corn.
· Choice boxed beef prices firmed another $2.30 to $319.13 on Wednesday. Choice beef has surged $22.76 since late September and is now more than $15.00 above last year at this time.
· Cash cattle prices have firmed for five consecutive weeks, though it’s uncertain if the strength will persist even with positive packer margins.
· December live cattle are trading within Tuesday’s broad range. That places initial support and resistance are at $185.55 and $187.80.
Hog futures are posting slight to moderate gains at midsession.
· December hog futures have extended to a near six-month high as technical support continues to prop up prices.
· The CME lean hog index is down 23 cents to $83.85 as of Oct. 15, marking a new seasonal low.
· The pork cutout firmed 45 cents to $94.85, holding well within the five-week choppy range from the September low at $92.91 to this month’s high at $96.31.
· December lean hogs are facing resistance at $78.63, while initial support lies at the session low of $77.70.