Corn futures are mostly 4 cents lower at midmorning.
· Corn futures are facing pressure for a second straight session, in step with soybean futures.
· Today’s forecast is wetter for next Tuesday through Sep. 28 than what was advertised Thursday, according to World Weather Inc. Daily showers will affect portions of the eastern Corn Belt with the resulting rain light enough that some fieldwork should advance while the western Corn Belt will be mostly dry.
· Overnight, Taiwan tendered to buy up to 65,000 MT of corn to be sourced from the U.S., Brazil or South Africa.
· December corn futures have extended below the 20- and 40-day moving averages of $4.03 3/4 and $4.02 1/4, with support at $4.00 1/4. Initial resistance stands at the 10-day moving average of $4.07 3/4.
Soybeans are mostly 8 to 9 cents lower, while soymeal futures are around $5.00 lower. Soyoil is around 20 points lower.
· Soybeans are extending Thursday’s losses, with pressure stemming from losses in soymeal futures.
· USDA reported daily soybean sales of 121,000 MT to China for 2024-25.
· Of the record 12.14 MMT of soybeans China imported in August, 10.24 MMT (84.3%) originated from Brazil. U.S. soybeans accounted for 202,383 MT (1.7%) of China’s August imports. Through the first eight months of this year, China imported 53.8 MMT of soybeans from Brazil (up 217% from the same period last year) and 12.8 MMT from the U.S. (down 73%).
· November soybeans are trading below the 10-day moving average of $10.06 1/4, with support at the convergence of the 20- and 40-day moving averages around $10.01. Resistance is at $10.18 3/4.
Wheat futures are steady to 2 cents higher, with SRW leading gains.
· Wheat futures are posting modest corrective gains, though technical resistance and U.S. dollar strength are limiting the upside.
· Grain trade association Coceral slashed its estimate for this year’s soft wheat production in the European Union and Britain to 126 MMT, down 8.5 MMT from its June forecast and 10% below year-ago.
· A lack of spring rain across Western Australia is expected to crimp wheat production in the nation’s top growing state, the Grain Industry Association of Western Australia said in its monthly report. The association forecast Western Australia wheat production at 9.3 MMT, down 7% from last month. Without further rain in the next two weeks, production potential will decline further, it noted.
· Ukraine’s ag ministry lowered its winter wheat seedings forecast by 210,000 hectares to 4.48 million hectares. Record temperatures and a lack of rain almost throughout the country in recent months have created unfavorable conditions for sowing winter crops. As of Sept. 19, farmers had seeded 360,300 hectares to winter grains, including 340,300 hectares of winter wheat.
· December SRW wheat futures are being limited by the 10-day moving average of $5.76 1/2, while initial support lies at the 20- and 40-day moving averages of $5.64 1/4 and $5.59 1/2.
Live cattle and feeders are mostly firmer at midsession.
· Live cattle are choppy as traders prepare for this afternoon’s Cattle on Feed Report and wait for cash cattle trade to develop.
· Analysts expect USDA’s Cattle on Feed Report to show the large feedlot (1,000-plus head) inventory up 0.9% from year-ago at 11.194 million head. After a 5.8% jump in placements during July, the report is expected to show a 1.0% decline in the number of cattle moved into feedlots last month. Marketings are expected to decline 3.4% from August 2023.
· Wholesale beef prices continued their seasonal descent on Thursday as Choice fell $1.82 to $299.56 and Select dropped $1.49 to $286.26. That’s the first time Choice beef has been below the $300.00 mark since May 13. Movement remained solid at 170 loads for the day.
· October live cattle are trading within Thursday’s range, with the 40-day moving average of $179.42 serving as initial support. Additional support lies at $178.76, while initial resistance stands at Thursday’s high of $180.425.
Hog futures modestly firmer at midsession
· October hog futures are firmer on support from firming cash and wholesale fundamentals.
· The CME lean hog index is up 16 cents to $84.38 as of Sept. 18, the first increase in two weeks. The discount October lean hog futures hold to the index shrunk under $2.00.
· The pork cutout value rose 40 cents on Thursday to $94.81, led by gains in primal bellies, butts and ribs. Movement totaled 323.7 loads.
· October lean hogs continue to face resistance at $82.80, while initial support lies at $83.20.