Corn futures are mostly a penny to 2 cents lower at midmorning.
· Corn futures are lower amid general weakness across the ag markets, though strong crude oil gains are curbing selling interest.
· USDA reported corn export sales of 1.684 MMT for the week ended Sept. 26, surpassing analysts’ expectations of 600,000 MT to 1.0 MMT. Exports totaled 1.170 MMT.
· Union Pacific Corp said Ferromex (FXE), the Mexican railroad it interchanges with, has resumed issuing permits for grain shuttle trains at the U.S./Mexico border crossing at Eagle Pass, Texas. Earlier this week, BNSF Railway said it had resumed issuing permits for grain shuttles heading to Mexico.
· December corn futures are finding support at the 100-day moving average of $4.27 1/2. Initial resistance is at Wednesday’s high at $4.34 1/4, followed by $4.41.
Soybeans are mostly 6 to 7 cents lower, while soymeal futures are around $6.00 lower. Soyoil is about 50 points higher.
· Soybeans are being led lower by soymeal weakness and technical-based selling.
· USDA reported soybean export sales of 1.444 MMT for the week ended Sept. 26, which was within analysts’ range of expectations from 1.0 MMT to 1.6 MMT. Exports totaled 724,600 MT, with 199,900 MT shipped to China.
· Rain is still expected in Brazil during the second half of next week, but another week of limited rain will occur first. Rains are needed to improve planting conditions for early soybeans.
· November soybean futures have retreated after recently retracing 38.2% of the price drop from the May high to the August low. Near-term resistance is at Monday’s high of $10.69 3/4. Near-term support is in the $10.42 to $10.27 range.
SRW wheat futures are 5 to 7 cents lower, while HRW and HRS wheat are mostly 1 to 2 cents lower.
· Wheat futures are facing modest profit-taking on pressure from U.S. dollar strength.
· USDA reported wheat export sales of 443,700 MT for the week ended Sept. 26, topping expectations ranging from150,000 to 400,000 MT. Exports totaled 531,700 MT.
· Kazakh grain exports to Russia have not been halted, the state railway company said. Russia said earlier this week it has effectively banned the import and transit of Kazakh grain on phytosanitary grounds. Kazakhstan relies on transit through Russian territory to sell its grain in Europe and the Mediterranean.
· Egypt has developed plans to slash wheat imports and spend less on subsidized bread by adding corn or sorghum as ingredients, five industry sources briefed on the plans told Reuters.
· December SRW futures completed a 38.2% retracement of the sharp price drop from the May high to the August low. Near-term resistance stands at the 200-day moving average near $6.16. Near-term support is at the psychological $6.00 mark and the 5-day moving average at $5.98.
Live cattle and feeders are moderately to sharply lower.
· Nearby live cattle have backed off from earlier highs as traders pause in the wake of Wednesday’s strong gains.
· Cash sources were generally expecting mostly steady cash cattle prices this week. But the surge in futures on Wednesday has some now anticipating firmer cash prices again, despite negative cutting margins and ideas packers are well supplied after recent active purchases.
· Wholesale beef slipped on Wednesday, with Choice declining 36 cents to $299.81, while Select fell $1.37 to $283.93. Movement remained solid, however, at 184 loads.
· December live cattle face resistance at $188.49, while initial support lies at $186.43.
Hog futures are mildly lower at midsession.
· October hog futures are facing corrective selling as recent strength pushed futures into overbought territory.
· The CME lean hog index is up 32 cents to $84.45 as of Oct. 1.
· The pork cutout value slid $1.29 on Wednesday to $95.02 amid losses in all cuts aside from primal butts. Movement totaled 292.8 loads for the day.
· October lean hogs are capped by resistance at the previous session high of $84.75, while initial support lies at yesterday’s low of $83.725.