Corn futures are unchanged to a penny higher at midmorning.
· Corn futures are modestly firmer, in step with soybean and wheat futures, despite lacking outside market support.
· USDA reported a daily corn sale of 126,000 MT to unknown destinations for 2024-25.
· U.S. crop weather in the Midwest, Plains, Delta and interior southeastern states will remain mostly dry for the next 10 days, while frost and freezes may impact a part of the Northern and Central and Plains and Midwest late this weekend into next week, notes World Weather Inc.
· Ethanol production averaged 1.038 million barrels per day (bod) during the week ended Oct. 4, up 23,000 bpd (2.3%) from the previous week and 32,000 bpd (3.2%) above last year. Ethanol stocks plunged 1.305 million barrels to 22.154 million barrels.
· Inpasa, Brazil’s largest corn ethanol producer, on Tuesday began operations at an expansion of its main biorefinery, which can now be considered among the world’s largest production units for corn-based ethanol, according to the company.
· December corn futures are trading within Tuesday’s lower range, limited by resistance at the 10- and 100-day moving averages, currently trading at $4.23 3/4 and $4.25. Initial support lies at the previous session low of $4.19 1/4, which is backed by the 20-day moving average at $4.17.
Soybeans are mostly 4 to 6 cents higher, while soymeal futures are narrowly mixed. Soyoil is around 20 points lower.
· Soybeans are notching slight gains despite continued weakness in meal and soyoil.
· Brazil and Argentina weather is still trending toward dryness relief during the next 10 days to two weeks. World Weather notes most areas will eventually get rain benefiting planting, emergence and crop establishment in both nations.
· The European Union’s move to delay rules that would ban the import of crops linked to deforestation is creating upheaval for big traders’ long-set plans to meet the new demand, Bloomberg reported. The EU Deforestation Regulation, which would have gone
into effect at the end of the year, is expected to be put off for another 12 months after the bloc votes on the matter.
· November soybean futures bounced from support at Tuesday’s low of $10.11 1/2, which is backed by the 40-day moving average of $10.10 1/4. Meanwhile, initial resistance stands at the 20-day moving average of $10.31 1/2.
Wheat futures are 1 to 3 cents higher.
· Wheat futures are edging higher, though U.S. dollar strength and technical resistance are curbing heavier buying.
· Russian farmers have planted 13 million hectares of winter grain so far this year out of the expected 20 million hectares in total, Agriculture Minister Oksana Lut said. “On the whole, the winter sowing campaign is going according to plan,” Lut told Russia’s upper house of parliament.
· Overnight, South Korea purchased 30,000 MT of U.S. milling wheat. Algeria purchased between 510,000 and 570,000 MT of optional origin milling wheat, the bulk of which is expected to be sourced from the Black Sea region. Japan tendered to buy 65,000 MT of feed wheat and 25,000 MT of feed barley. Jordan tendered to buy up to 120,000 MT of optional origin milling wheat.
· December SRW futures continue to face resistance at the 100-day moving average of $6.00 1/2, while support remains at the 10-day moving average of $5.94.
Live cattle are slightly to moderately lower, while feeders are sharply lower at midmorning.
· Nearby live cattle are taking back Tuesday’s gains, though solid technical support is limiting the downside.
· Wholesale beef prices were mixed on Tuesday, with Choice up 91 cents to $306.84 while Select fell 72 cents to $288.61. Choice beef prices have firmed nearly $10.50 from the Sept. 26 low. While packer margins remain in the red, they have improved with the jump in Choice beef.
· Cash cattle expectations are mixed, with some expecting another week of strength while others feel prices will retreat.
· December live cattle are being supported by the 10-day moving average of $186.19, while resistance stands at $188.33.
Hog futures are weaker at midsession.
· October hog futures are mildly weaker amid pressure from fading cash and wholesale fundamentals. Deferred contracts are facing heavy selling pressure.
· The CME lean hog index is down 4 cents to $84.22 as of Oct. 7.
· The pork cutout fell $1.24 to $94.81 on Tuesday as losses in loins, butts, picnics and bellies more than offset gains in ribs and hams.
· Daily Livestock Report notes, “The share of negotiated hogs is down to just 1% and the share of hogs sold on a swine or pork market formula is down to 28.5%, i.e. less than 30% of the overall market. As industry has changed, so has pricing, with the pork cutout becoming increasingly more important in influencing the CME index.”
· October lean hogs are finding support at $83.74, while initial resistance stands at $84.17.