Corn producers: Make 2024-crop sales... December corn futures firmed to their highest level since late July on Thursday before pulling back. While the contract didn’t quite get to our sales target, we want to reward the rally ahead of next Monday’s reports in case there’s a bearish reaction. We advise corn hedgers and cash-only marketers to sell an initial 20% of 2024-crop production in the cash market. Our next sales target would be the $4.25 to $4.50 level for December corn futures.
Corn futures are 2 to 3 cents higher at midmorning.
· Corn futures are higher amid spillover strength from soybeans and soymeal.
· Helene made landfall at 11:10 p.m. ET Thursday near the mouth of the Aucilla River in the Big Bend area of Florida’s Gulf Coast as a Category 4 hurricane. The U.S. National Hurricane Center says Helene weakened to tropical storm intensity early this morning as it moved inland through Georgia and is producing damaging winds and flooding across the Southeast.
· Corn planting advanced slowly in Argentina, reaching 10.5% of the projected sown area amid dry weather, according to the Buenos Aires Grain Exchange (BAGE) weekly crop report.
· December corn is hovering below resistance at $4.17 1/2, while support at the 10-, 20- and 40-day moving averages continue to limit selling interest.
Soybeans are mostly 13 to 15 cents higher, while soymeal futures are $9.00 to $13.00 higher. Soyoil is mostly 45 to 65 points lower.
· Soybeans are being aided by strong soymeal gains.
· Brazil’s center-west crop areas will remain mostly dry for at least another week to 10 days and sporadic showers are expected in days 11-15. Some rain is possible in northernmost Mato Grosso next week that might help improve planting moisture, but only in the far north. Center-south Brazil crop areas will also experience very little rain over the next week to 10 days.
· USDA reported daily soyoil sales of 20,000 MT to South Korea for 2024-25.
· November soybeans bounced prior to testing support at $10.32 1/4. Initial resistance remains at $10.57 1/4.
Winter wheat futures are mostly 4 to 6 cents lower, while spring wheat is 2 to 4 cents lower.
· Wheat futures are extending Thursday’s losses, though technical support is limiting selling pressure.
· World Weather Inc. says dryness remains a worry for Russia’s Southern Region, Kazakhstan and eastern Ukraine as well as a part of Russia’s Central Region.
· Russia’s winter crop sowing is in a difficult situation due to severe drought, which could affect next year’s harvest.
· December SRW wheat futures dropped below the 10-day moving average at $5.77 1/2 but are finding support at the 20-day moving average of $5.75 1/2. Initial resistance stands at $5.87 3/4.
Live cattle are marking modest gains while feeders are posting slight to moderate gains.
· Nearby live cattle moved to the highest level since the beginning of August on stronger cash cattle trade.
· Cash cattle trade took place at mostly $2.00 higher prices in the Southern Plains on Thursday.
· Wholesale beef prices slipped on Thursday with Choice falling $1.80 to $296.37, while Select fell 91 cents to $282.37. Movement totaled 157 loads for the day.
· USDA’s Cold Storage Report showed beef stocks declined contra-seasonally during August, while pork stocks rose less than average. Both imply meat demand more than kept pace with supplies last month. Beef stocks totaled 395.2 million lbs. at the end of August, down 7.4 million lbs. from July, whereas the five-year average was a 5.1-million-lb. increase for the month.
· October live cattle are testing resistance at $184.93, with additional resistance standing at $185.75. Initial support lies at $183.50.
Hog futures are mildly firmer at midsession.
· October hog futures are favoring the upside but continue to trade in a consolidative sideways pattern.
· USDA’s Cold Storage Report showed pork stocks totaled 453.6 million lbs., up 175,000 lbs. from July, less than the five-year average increase of 5.3 million lbs. for the month.
· The CME lean hog index is up 2 cents to $84.07 as of Sept. 25.
· The pork cutout value rose 54 cents $94.64, led by gains in primal bellies and hams. Movement totaled 294.8 loads.
· October lean hogs are testing resistance at $82.61, with additional resistance at $83.19. Initial support lies at the 200-day moving average of $81.47.