Corn futures are 3 to 5 cents higher at midmorning.
· Corn futures are extending Monday’s short-covering gains, with support stemming from rallying soybean and crude oil futures, along with more export demand news.
· USDA reported daily corn sales of 359,500 MT to Mexico for 2024-25.
· USDA reported corn harvest was 65% complete as of Sunday, well ahead of the five-year average of 52%.
· West-central and southern Argentina will get some much-needed rain Tuesday into Thursday, improving summer crop planting moisture, according to World Weather Inc.
· December corn futures have extended above the 10- and 40-day moving averages, each trading around $4.11, with the 20-day moving average of $4.16 3/4 now serving as resistance. Initial support lies at $4.08.
Soybeans are mostly 6 to 8 cents higher, while soymeal futures are around $1.50 to $2.00 lower. Soyoil is mostly 120 to 130 points higher.
· Soybeans are being supported by strong soyoil gains, with that market supported by crude oil.
· USDA reported 81% of soybean harvest was complete as of Oct. 20, well ahead of the five-year average of 67%.
· Center-west, center-south and northeastern Brazil received much-needed rain during the past week that improved soil moisture. World Weather Inc. says with more rain on the way this week, planting and establishment conditions will further improve or remain favorable across Brazil’s main production areas, though sustained rains are needed to support ideal long-term crop development.
· Indonesia’s agriculture minister reaffirmed the country’s plan to implement a 40% mandatory biodiesel mix with palm oil-based fuel, known as B40, starting in January. The government is also working toward implementing B50 in the future.
· November soybean futures continue to face resistance at the 10-day moving average of $9.94 1/4, while initial support lies at $9.77 3/4.
Wheat futures are mostly a penny to 3 cents higher.
· Wheat futures are marking light corrective gains following recent selling.
· USDA reported 73% of the winter wheat crop was planted as of Sunday, three points behind average, while 46% had emerged.
· Russia’s 2025 wheat production could decline for a third straight year, according to the first projections released by leading Black Sea consultancies IKAR and SovEcon. IKAR forecasts production in a range of 80 MMT to 85 MMT. SovEcon put its first crop projection at 80.1 MMT, which would be the smallest since 2021-22. Production was around 83 MMT this year.
· Ukrainian farmers had sown 4.33 million hectares of winter grains for the 2025 harvest as of Oct. 21, or 83.5% of the expected area of 5.19 million hectares, the agriculture ministry said.
· December SRW futures are limited by resistance at the 40-day moving average of $5.79 1/2, while the contract rebounded from the spike of initial support at $5.67 1/4.
Live cattle and feeders are posting moderate- to strong gains at midmorning.
· Live cattle futures are firmer amid persisting cash and wholesale beef strength.
· Last week’s cash cattle average rose another 40 cents to $187.61, marking the sixth consecutive week of gains.
· Wholesale beef continues to soar, with Choice rising $2.21 to $322.86, while Select gained $2.01 to $296.21. Movement totaled 118 loads for the day.
· December live cattle are facing resistance at this month’s high of $188.55, while the 20-day moving average around $186.59 is support.
Hog futures are mostly firmer at midsession.
· December hog futures are modestly weaker amid light selling following Monday’s surge to a six and a half month high.
· The CME lean hog index is up 27 cents to $84.23 as of Oct. 18, marking consecutive daily gains after the index posted a new seasonal low late last week.
· The pork cutout value rose $1.65 on Monday to $98.24, led by gains in primal loins, hams and butts. Movement totaled 269.3 loads for the day.
· December lean hogs gapped higher and reached the highest level since early April. Today’s high at $79.45 is initial resistance. Initial support lies at $77.85.