Corn futures are fractionally to a penny lower at midmorning.
· Corn futures are choppy with a slight downside bias in narrow trade as technical resistance curbs buyer interest.
· USDA reported daily corn sales of 273,048 MT to unknown destinations for 2024-25, marking 10 of the last 11 market days with daily sales announcements.
· World Weather Inc. reports Argentina will experience a good mix of rain and sunshine throughout the next two weeks. However, some areas in southern Argentina are still a bit too dry.
· Flooding rain is still possible in the central U.S. this weekend into early next week. Areas from western Texas through Oklahoma and southeastern Kansas to Missouri, northwestern Illinois and southeastern Iowa will be the wettest.
· Ethanol production averaged 1.082 million barrels per day (bpd) during the week ended Oct. 25, up 1,000 bpd from the previous week and 30,000 bpd (2.9%) above last year. Ethanol stocks dropped 452,000 barrels to 21.771 million barrels.
· December corn futures are trading within Tuesday’s upper range, with resistance remaining at the 10- and 40-day moving averages, each around $4.13, while support lies in the $4.10 3/4 to $4.10 area.
Soybeans are mostly 9 to 10 cents higher, while soymeal futures are around $1.00 higher. Soyoil is around 70 points higher.
· Soybeans are recouping a portion of recent losses as corrective buying in soymeal lends optimism.
· USDA reported daily soybean sales of 132,000 MT to China and 132,000 MT to unknown destinations – both for 2024-25.
· Rain will impact most of Brazil during the next two weeks with center-west and northern parts of center-south getting rain most frequently and significantly later this week and especially next week, according to World Weather Inc.
· USDA announced $239 million in grants to support domestic biofuel production. Of this, $200 million comes from the Biobased Market Access and Development Program, funded by the Commodity Credit Corporation and the Inflation Reduction Act (IRA/Climate Act). The remaining $39 million will be distributed through the Higher Blends Infrastructure Incentive Program (HBIIP).
· January soybean futures continue to be limited by resistance at the 10-day moving average of $9.93, while support lies at $9.74 1/2.
Wheat futures are mostly 6 to 8 cents higher.
· Wheat futures are solidly higher amid corrective strength.
· Russia’s Southern Region and western Kazakhstan are advertised wetter today relative to that of Monday and Tuesday. World Weather notes, however, no general soaking rain is expected.
· Argentina’s central and southern wheat production areas received significant rain recently and crops should be reproducing and filling in a much better environment except in far southern Argentina where it’s still too dry. Southern Brazil weather is drying out to benefit maturing wheat and harvest.
· December SRW futures are testing resistance at the 100-day moving average of $5.79 1/2, while initial support remains at $5.61 1/2.
Live cattle and feeders are sharply lower at midmorning.
· Live cattle futures are extending Tuesday’s weakness, with most of the selling corrective in nature.
· Wholesale beef prices retreated on Tuesday, with Choice declining $3.09 to $320.41 and Select dropping $2.22 to $289.96. Movement totaled 150 loads for the day.
· Wholesale weakness could weigh on cash cattle prices, especially considering the recent rally in cash prices.
· December live cattle are extending lower after Tuesday’s bearish reversal. Support is at the last reaction low of $185.20. The 20- and 10-day moving averages of $187.56 and $187.87 are resistance.
Hog futures are modestly to sharply higher at midsession, led by gains in December hogs.
· December hog futures posted a contract high, underpinned by technical strength and a persisting gains in the cash index.
· The CME lean hog index is up another 18 cents to $85.73 as of Oct. 28, the eighth straight daily gain.
· The pork cutout value slipped 88 cents on Tuesday to $101.07, led by declines in primal picnics and loins. Movement totaled 296.0 loads for the day.
· December lean hogs have soared to a fresh contract high, with resistance now around $85.22, while support lies at $82.36.