Corn futures are mostly a penny higher at midmorning.
· Corn futures are extending recent gains, although buying is modest given strong export data.
· USDA reported daily corn sales of 227,600 MT of corn to Japan and 165,000 MT to unknown destinations — each for 2024-25. This marked the seventh straight day with corn sales.
· USDA reported corn export sales of 3.6 MMT for the week ended Oct. 17, easily topping analysts pre-report range of 2.2 MMT to 3.3 MMT. Net sales were up 62% from the previous week, noticeably from the four-week average and marked the largest weekly corn sale since May 2021. Exports of 999,0000 MT were nearly double the previous week.
· December corn futures are facing resistance at $4.23 1/2, while initial support lies at the 20- and 100-day moving averages, each trading near $4.17 1/2.
Soybeans are mixed, while soymeal futures are around $1.00 to $3.50 lower. Soyoil is around 50 to 60 points higher.
· November soybeans are higher for the fourth straight session, with soyoil strength offsetting pressure from soymeal futures.
· USDA reported daily soybean sales of 198,000 MT to unknown destinations for 2024-25.
· USDA reported soybean export sales of 2.15 MMT during the week ended Oct. 17, up 26% from the previous week and 47% from the four-week average. Net sales were near the top-end of the pre-report range of 1.2 MMT to 2.4 MMT. Exports during the week totaled 2.45 MMT.
· Malaysian palm oil jumped more than 3% overnight, supported by expectations of palm production declines and lower national stockpiles.
· November soybeans pushed above the $10.00 mark for the first time since Oct. 14, though the contract failed to find sustained buying above that level. Today’s high at $10.12 1/4 stands as near-term resistance, followed by the 20- and 40-day moving averages around $10.15.
Wheat futures are mostly 1 to 4 cents lower.
· Wheat futures are favoring the downside despite a weaker U.S. dollar as technical resistance continues to curb buying interest.
· USDA reported wheat export sales of 532,900 MT for the week ended Oct. 17, up 6% from the previous week and 38% from the four-week average. Net sales were within the pre-report range of 350,000 to 650,000 MT. Exports during the week totaled 276,500 MT.
· The U.S. ag attaché in Australia estimates the country’s 2024-25 wheat production at 28.5 MMT, 1.9 MMT below the 10-year average and 3.5 MMT lower than USDA’s forecast in the October WASDE Report.
· The European Union is debating whether to hike tariffs on more Russian agricultural and food products, as well as fertilizers, Bloomberg reported, citing people familiar with the matter. Several member states eager to limit Moscow’s revenues have been urging the bloc to impose sweeping levies on agricultural and fish imports from Russia and Belarus into the EU, on top of the higher duties on grain products set earlier this year.
· December SRW futures continue to battle resistance at the 40- and 10-day moving averages, which have converged around $5.81 1/2 and are backed by the 100- and 20-day moving averages of $5.84 1/4 and $5.88 3/4. Initial support at $5.75 3/4 is being tested.
Live cattle are modestly higher, while feeders are marking slight to moderate gains at midmorning.
· Live cattle futures are moderately firmer in narrow trade as traders wait for cash trade to develop.
· After six straight weeks of higher prices, packers have been slow to establish cash cattle bids while feedlots are confidently pricing cattle higher. Given strong packer margins, cash prices are eventually expected to trade steady/firmer barring a major decline in futures, though active trade may not occur until after Friday afternoon’s Cattle on Feed Report.
· Choice boxed beef prices slid $2.55 on Wednesday to $321.41, while Select rose 97 cents to $295.77. Movement totaled 136 loads for the day.
· USDA reported net beef sales of 16,700 MT for 2024, up 19% from the previous week and 11% from the four-week average.
· December live cattle are facing resistance at $188.86, which is backed by Wednesday’s high of $188.975, while support is at the intraday low of $187.875.
Hog futures are mixed at midsession.
· December hog futures have backed off earlier highs, though firming cash and wholesale fundamentals are curbing selling.
· The CME lean hog index firmed another 32 cents to $84.66 as of Oct. 22, the four straight daily gain.
· The pork cutout value rose 95 cents on Wednesday to $98.22, while movement totaled 306.0 loads for the day.
· USDA reported net pork sales of 22,200 MT for 2024, down 42% from the previous week and 45% from the four-week average.
· December lean hogs reached $80.30 before retreating, which is initial resistance, followed by the contract high at $80.65. Support remains at $79.29.