Corn futures are 3 to 4 cents lower at midmorning.
· Corn futures are lower on heavy pressure in soybeans and crude oil futures.
· Crop Consultant Dr. Michael Cordonnier kept his U.S. corn crop estimate at 15.09 billion bu. on a yield of 182.5 bu. per acre. He has a neutral bias going forward.
· USDA rated 64% of the corn crop as “good” to “excellent” and 13% “poor” to “very poor” as of Oct. 6.” On the weighted Pro Farmer Crop Condition Index (CCI; 0 to 500-point scale, with 500 representing perfect), the corn crop slipped 0.1 point to 365.9. Click here for details.
· Corn harvest was estimated to be 30% complete as of Sunday.
· December corn futures are testing support at the 10-day moving average of $4.23 for the second straight session, with additional support at Monday’s low of $4.21 1/4. Resistance stands at the 100-day moving average of $4.25 1/2, which is backed by $4.28 1/4.
Soybeans are mostly 17 to 18 cents lower, while soymeal futures are modestly lower. Soyoil is around 150 points lower.
· Soybeans are being led lower by hefty soyoil losses, which are falling in step with crude oil futures.
· USDA reported daily soybean sales of 166,000 MT to China for 2024-25.
· Cordonnier left his soybean production estimate unchanged at 4.44 billion bu. on a yield of 51.5 bu. per acre. He has a neutral bias toward the crop.
· USDA rated the soybean crop as 64% “good” to “excellent” and 11% “poor” to “very poor” as of Sunday. Harvest was estimated to be 47% complete. On our CCI, the soybean crop declined 1.6 points to 358.3.
· Oil World senior analyst David Mielke said Indonesia’s plan for the widespread use of the palm-oil based B40 biodiesel from next year would be “catastrophic” for the global market, as it would involve the additional use of 1.5 MMT to 1.7 MMT of the commodity. Mielke also said global palm oil production is expected to increase by 2.3 MMT in 2024-25 compared to the previous season.
· November soybean futures have extended the lowest level since Sept. 23, with the 40-day moving average of $10.08 1/2 is lending support. Resistance stands at $10.39 3/4.
Wheat futures are unchanged to 2 cents higher.
· Wheat futures are modestly favoring the upside earlier this morning, though a general risk-off tone throughout the marketplace curbing buying interest.
· USDA reported 51% of the winter wheat crop was planted and 25% emerged as of Oct. 6.
· A Russian missile hit a Palau-flagged vessel in Ukraine’s southern port of Odesa on Monday, killing a Ukrainian national and injuring five crew members in the second such attack in as many days, officials said.
· Eastern Ukraine into Russia’s Southern Region and part of Kazakhstan will experience showers starting Sunday and lasting through next week, states World Weather Inc. However, any moisture that falls will be light, though it will be better than the persistent dryness.
· December SRW futures are being supported by the 20-day moving average of $5.85 3/4, while psychological $6.00 level and the 100-day moving average of $6.01 1/2 serve as resistance.
Live cattle and feeders are modestly firmer at midmorning.
· Nearby live cattle are modestly firmer amid support from cash and wholesale fundamentals.
· Last week’s average cash cattle price rose 74 cents from the previous week to $186.89, marking a gain for the fourth straight week.
· Wholesale beef prices firmed $3.35 for Choice to $305.93 and $1.72 for Select to $289.33 on Monday, while movement totaled 106 loads. While the wholesale market is strengthening, packer cutting margins remain deep in the red, spurring questions about whether packers will bid up for cash cattle after four straight weeks of gains.
· China will buy 6,000 MT of frozen beef and mutton for its state reserves on Oct. 9. This marks the fourth batch of purchases for state reserves this year.
· December live cattle continue to be limited by resistance at $187.53, while initial support remains at $186.53.
Hog futures are mildly firmer at midsession.
· October hog futures are favoring the upside amid wholesale support.
· The CME lean hog index is down 57 cents to $84.26 as of Oct. 4, the second straight decline after a three-day rally to end last week.
· The pork cutout value firmed $1.74 to $96.05 on Monday as strong gains in loins, butts and picnics bellies more than offset lower prices for primal ribs and hams.
· October lean hogs are limited by resistance at $84.31, while initial support lies at $83.89.