Corn futures are mostly 3 cents lower at midmorning.
· Corn futures are extending Thursday’s pullback amid selling in soybeans and wheat and U.S. dollar strength.
· USDA reported daily corn sales of 198,000 MT to unknown destinations for 2024-25.
· World Weather Inc. reports dry weather will continue in the U.S. Midwest, Delta and Plains and far western states through much of the coming 10 days, allowing harvest to accelerate.
· South Africa’s Agricultural Business Chamber raised its forecast for the country’s corn exports for the year ending April 2025 to 1.9 MMT. The increase from a previous estimate of 1.85 MMT is due to higher-than-expected stocks carried over from the last season and a slight decrease in forecast domestic consumption.
· December corn futures dropped below the 5-day moving average overnight, potentially signaling a short-term top. Next support is the 10-day average around $4.21. This week’s high at $4.34 1/4 stands as solid near-term resistance.
Soybeans are mostly 4 to 5 cents lower, while soymeal futures are around $1.00 lower. Soyoil is about 40 points lower.
· Soybeans have eased from earlier highs amid selling pressure across the grain and soy complex.
· USDA reported daily soybean sales of 116,000 MT to China for 2024-25.
· Archer-Daniels-Midland Co is idling its only soybean processing plant in Iowa for weeks in the thick of harvest, the grain merchant told Reuters. ADM’s facility in Des Moines will close for maintenance work from mid-October through November. The facility crushes about 5 million bu. of soybeans a month on average, representing about 12% of Iowa’s monthly soybean crush.
· Brazil is expecting rain in its center-west and center-south crop areas Wednesday through Friday of next week, followed by more limited rain in the following weekend, though scattered showers are expected to increase again during the week of October 14.
· BMI, a unit of Fitch Solutions, expects recent Chinese stimulus measures will likely fuel only short-term support for industrial metals and agricultural prices, barring additional announcements.
· Malaysian palm oil futures closed higher and recorded a weekly gain, driven by the widening conflict in the Middle East. The palm oil market is now trading at a premium to soyoil.
· November soybean futures remain near the middle of the short-term consolidation pattern outlined by Monday’s high at $10.69 3/4 and the Sept. 25 low at $10.31 1/4. While the short-term pattern is sideways, the uptrend from the August low remains intact.
Winter wheat futures are 8 to 10 cents lower, while HRS futures are mostly 4 to 5 cents lower.
· Wheat futures are extending Thursday’s losses amid U.S. dollar strength.
· Drying in the U.S. Plains is beginning to raise concern over winter wheat establishment, despite some significant rain in HRW wheat areas during mid-September. Not much rain is expected for the next 10 days and temps will continue to be quite warm, resulting in slow emergence in unirrigated fields.
· Turkey plans to continue limiting some wheat imports when its four-month ban on purchases ends this month, according to a document seen by Bloomberg. After Oct. 15, the market will be only partially opened using a quota system, according to a letter from the Turkish Flour Industrialists’ Federation to millers.
· December SRW futures dropped below the 5-day moving average and the psychological $6.00 mark overnight, hinting at a short-term top. Support is at the 10-day moving average near $5.91. This week’s double-top at $6.17 1/4 stands as solid near-term resistance.
Live cattle and feeders are posting slight gains at midmorning.
· Nearby live cattle are modestly firmer as traders continue to wait for active cash trade to develop.
· Cash cattle trade so far this week has been too light for a true market test and cash negotiations remain at a standstill. Feedlots were still hopeful of getting higher prices for a fourth straight week while packers remained reluctant to raise bids amid negative margins.
· Wholesale beef prices edged lower on Thursday, with Choice slipping a penny to $299.80, while Select fell 64 cents to $283.29. Movement totaled 146 loads for the day.
· December live cattle are trading narrowly within Thursday’s lower range, with support at the previous session low of $186.075, while resistance stands at $187.51, which is backed by Thursday’s high of $187.90.
Hog futures are mildly favoring the downside at midsession.
· October hog futures are slightly firmer, with lingering support from firming cash fundamentals.
· The CME lean hog index is up 45 cents to $84.90 as of Oct. 2, the third straight daily gain and the largest singular increase since late July.
· The pork cutout value fell another 22 cents to $94.80, led by losses in primal bellies, loins and butts. Movement totaled 284.1 loads for the day.
· October lean hogs continue to face resistance at $84.46, while initial support lies at $83.83.