Corn futures are chopping around unchanged at midmorning.
· Corn futures have eased from overnight strength amid lackluster export data, though general strength across the grain and soy complexes is supporting prices.
· USDA reported daily corn sales of 118,626 MT to unknown destinations for 2024-25.
· USDA reported corn export sales of 666,500 MT for the week ended Sept. 5, which missed the analysts’ range of expectations from 700,000 MT to 1.6 MMT.
· USDA will update its corn and soybean crop estimates at 11:00 a.m. CT, which will include its first objective field data. Analysts expect little change to those crop estimates from the initial forecasts last month, with the average pre-report estimates at 15.076 billion bu. for corn (15.147 billion bu. in August). Old and new-crop ending stocks are expected to decline modestly.
· Strategie Grains cut its EU corn production forecast by 2.1 MMT to 57.9 MMT as drought persisted in eastern areas of the bloc.
· The Ukrainian Agrarian Council says Ukraine’s corn production could be lower than the ag ministry forecasts. The head of the farmers union said production could be as much as 8 MMT to 9 MMT below last year’s crop of more than 31 MMT, which would be well below the ag ministry’s forecast of no less than 25 MMT.
· December corn failed to find sustained buying above resistance at $4.07 3/4, which is backed by $4.10 3/4, while the 40-day moving average of $4.02 3/4 serves up initial support.
Soybeans are mostly 5 to 7 cents higher, while soymeal futures are marginally firmer. Soyoil is 50 to 65 points higher.
· Soybeans are higher, though technical resistance continues to curb additional short-covering.
· Analysts expect USDA to peg the soybean production at 4.589 billion bu. for soybeans (unchanged from August). Meanwhile, old-crop ending stocks are expected to decline slightly, while an increase is anticipated for new-crop.
· USDA reported soybean export sales of 1.47 MMT during the week ended Sept. 5, with the new marketing year beginning Sept. 1. Net sales were near the upper end of the pre-report range from 900,000 MT to 1.6 MMT.
· China’s ag ministry raised the country’s 2023-24 (Oct.-Sept.) soybean import forecast by 3.92 MMT to 102.29 MMT, as declining global prices boosted demand. The ministry raised its 2023-24 soy crush forecast by 1.35 MMT to 97.5 MMT.
· India’s palm oil imports fell 26% in August from July to 797,482 MT, the Solvent Extractors’ Association of India (SEA) said. Imports of soyoil rose 16% to 454,639 MT, while sunflower oil imports fell 22.5% to 284,108 MT, it said. The drop in imports of palm and sunflower oils lowered the country’s total edible oil imports by 17% to 1.53 MMT.
· November soybeans are being limited by the 40-day moving average of $10.09 1/4, while initial support remains at $9.94 1/2.
Wheat futures are mostly 2 to 6 cents higher.
· Wheat futures are extending higher on support from notable export sales and global supply uncertainties.
· USDA reported wheat export sales of 474,900 MT for the week ended Sept. 5, up 40% from the previous week and 11% from the four-week average. Net sales were near the upper end of the pre-report range of estimates from 300,000 to 550,000 MT.
· Strategie Grains cut its forecast for soft wheat production in the European Union by 2.1 MMT to a 12-year low of 114.4 MMT due to rain-hit harvests in top producers France and Germany. For France, the EU’s biggest wheat grower, the consultancy reduced its crop estimate by 600,000 MT to 25 MMT, the smallest since 1983.
· December SRW wheat futures have reached the highest intraday level since July 12, with resistance at $5.93 3/4. Initial support lies at $5.67 1/2.
Live cattle and feeders are sharply higher at midmorning.
· Live cattle are notably higher in a continuation of Wednesday’s gains amid improving odds for higher cash cattle trade this week.
· Feedlots in the Southern Plains reportedly passed on $1.00 lower bids from packers on Wednesday, sparking speculation the six-week drop in cash cattle prices may be coming to an end. Packers have solidified margins in the black with the string of lower cash prices, giving them some room to raise bids if needed.
· Wholesale beef prices dropped on Wednesday, with Choice falling 87 cents to $307.36 while Select dropped $2.63 to $294.38. Movement was solid, however, at 162 loads for the day.
· USDA reported net beef sales of 11,400 MT for 2024, down 31% from the previous week and 41% from the four-week average.
· October live cattle extended above the 10- and 20-day moving averages of $177.55 and $177.60 and are testing resistance at $178.45. Next resistance is at $179.55. Initial support lies at $176.60.
Hog futures are mostly lower at midsession.
· October hog futures are slightly firmer, though fading cash and wholesale fundamentals are limiting the upside. Deferred futures are under light pressure.
· The CME lean hog index is down another dime to $85.46 as of Sept. 10, the lowest level since April 2.
· The pork cutout fell another $1.89 to $92.91 on Wednesday amid declines in all cuts aside from a modest increase in primal bellies. Movement totaled 376.1 loads for the day.
· USDA reported net pork sales of 29,700 MT for 2024, down 8% from the previous week and 10% from the four-week average.
· October lean hogs are facing initial resistance at $80.21, which is backed by the 10-day moving average of $80.56, while initial support lies at the 20-day moving average of $79.54.