Corn futures are 4 to 5 cents higher at midmorning.
· Corn futures are posting followthrough buying on spillover from SRW wheat, while continued crude strength lends additional support.
· Hurricane Francine is expected to dissipate today. However, it continues to produce heavy rainfall across the Delta and Southeast. Lighter rains are expected up into the Ohio River valley. The ports of Cameron, Lake Charles, New Orleans, Plaquemines and St. Bernard have reopened but have restrictions in place, the U.S. Coast Guard said.
· As of Sept. 12, low water levels on the Mississippi River have forced barge operators to reduce draft limits and tow sizes, particularly affecting grain shipments, according to USDA’s Grain Transportation Report. Drafts have been cut to 9.5 feet on the Ohio River, 10 feet from St. Louis to Greenville and 10.5 feet from Greenville to the Gulf.
· Despite alack or rain, which is postponing planting, the Rosario Grain Exchange in Argentina increased its corn production forecast to 51 MMT to 52 MMT from 49 MMT previously.
· December corn is testing resistance at $4.11 1/2, with additional resistance at $4.17. Initial support lies at the 10-day moving average of $4.07 1/2 and is backed by the 40-day, currently trading around $4.02 3/4.
Soybeans are mostly a penny lower, while soymeal futures are around $2.00 lower. Soyoil is modestly weaker.
· Soybeans have faded from earlier highs and are modestly favoring the downside amid pressure from meal futures.
· USDA reported daily soybean sales of 100,000 MT to China for 2024-25.
· Soybean planted area in Argentina is expected to increase 7.5% from the previous year, resulting in expected output of 52 MMT to 53 MMT, marking the third consecutive year of growth, according to the Rosario Grain Exchange.
· November soybeans were turned back on the test of resistance at $10.19 1/2. Support at the 10- and 40-day moving averages, each currently trading around $10.09, is being tested. That is backed by the 20-day moving average at $9.92 3/4.
SRW wheat futures are mostly 13 to 15 cents higher, while HRW is around 12 cents higher. HRS futures are around 7 to 9 cents higher.
· Wheat futures are being supported by rising tensions in the Black Sea along with looming global supply uncertainties.
· Romania’s foreign ministry said the attack on a grain ship by Russia was “unprecedented escalation” in its war against Ukraine. Kyiv accused Russia on Thursday of using strategic bombers to strike a civilian grain vessel in a missile attack in neutral Black Sea waters near Romania.
· Planting moisture is limited in southern Russia and parts of Ukraine where rain will be needed soon to ensure the crops get established favorably prior to winter dormancy. Planting moisture is also needed in the U.S. Plains, although there is plenty of time for that to evolve and some rainfall is expected next week.
· December SRW wheat futures continue to face resistance at $5.99 1/2, while the 10-day moving average of $5.75 continues to serve as solid support.
Live cattle are slightly higher at midmorning, while feeders are mixed.
· Live cattle are favoring the upside but are being limited by technical pressure.
· Cash cattle trade so far this week took place at roughly steady prices with last week in the Southern Plains, though some feedlots continued to hold out for higher bids. Cash negotiation in the northern market remained limited.
· Choice boxed beef prices fell a modest 18 cents on Thursday to $307.18, while Select rose $1.26 to $295.64. Movement totaled 136 loads for the day.
· October live cattle are trading within Thursday’s range, supported by 10- and 20-day moving averages of $177.61 and $177.41. Initial resistance stands at $178.81.
Hog futures are slightly higher at midsession.
· October hog futures are firmer as traders narrow discounts to the falling cash index.
· The CME lean hog index is down another 11 cents to $85.35 as of Sept. 11.
· The pork cutout firmed $1.27 on Thursday to $94.18 amid strong gains in bellies, ribs, loins and butts.
· October lean hogs continue to pivot around the 20-day moving average of $79.52. Initial support lies at the 100-day moving average of $78.86, while resistance stands at the 10-day moving average of $80.52.