Corn futures are mostly a penny higher at midmorning.
· Corn futures are quiet ahead of USDA’s Quarterly Grains Stock Report.
· The report will set final 2023-24 ending stocks for corn and has a history of surprises, with analysts routinely missing those estimates by a wide margin. Analysts expect Sept. 1 corn stocks of 1.844 billion bu., on average.
· USDA reported corn export inspections of 1.14 MMT (44.9 million bu.) during the week ended Sept. 26, down 10,226 MT but within trade estimates ranging from 500,000 MT 1.15 MMT.
· Grain terminal workers at Canada’s Port of Vancouver ended a four-day strike that disrupted grain exports during the critical harvest season, following a tentative agreement. Meanwhile, longshoremen at the Port of Montréal are set to begin a three-day strike today, potentially disrupting cargo shipments at one of Canada’s busiest seaports.
· AgRural reported Brazil’s first crop corn planting reached 30% done as of last Thursday, just behind last year’s 32% pace.
· December corn is trading within Friday’s upper range, limited by the previous session high of $4.19 3/4, while the 10- and 20-day moving averages of $4.10 1/4 and $4.12 1/4 continue to serve as support.
Soybeans are mostly 1 to 2 cents lower, while soymeal futures are mixed. Soyoil is mostly 25 to 55 points higher.
· Soybeans are facing light corrective selling following Friday’s strong gains.
· USDA reported daily soybean sales of 116,000 MT to China for 2024-25.
· In USDA’s Grain Stocks Report, due out at 11 a.m. CT, analysts expect Sept. 1 soybean stocks of 351 million bu., on average.
· USDA reported soybean export inspections of 675,749 MT (24.8 million bu.), up 177,163 MT from the previous week and within analysts’ pre-report expectations from 350,000 to 1.0 MMT.
· Brazil’s soybean planting remained limited by heat and dryness through central production areas, reaching 2% as of last Thursday, according to AgRural. That was behind 5.2% planted on that date last year.
· November soybeans are being limited by the 20-day moving average of $10.66 1/4, while initial support lies at $10.43 1/2.
Wheat futures are 6 to 8 cents higher.
· Wheat futures are higher despite a stronger U.S. dollar.
· USDA will release its final estimates for 2024 wheat production. All wheat production is expected at 1.966 billion bu., down from the August estimate of 1.982 billion bu.
· USDA reported wheat export inspections of 536,929 MT (19.7 million bu.), down 185,679 MT but within the pre-report range of expectations from 400,000 to 675,000 MT.
· There is some growing concern about dryness in the Plains and possible slow emergence and establishment, notes World Weather Inc. Recent rains in the Midwest, however, have improved the moisture profile in southern wheat areas for planting in October.
· Drought remains a serious concern from eastern Ukraine into western Kazakhstan, although there is still time for improved rainfall for better emergence and establishment.
· December SRW wheat futures have moved back above the 10- and 20-day moving averages, with resistance at $5.96 1/4.
Live cattle and feeders are posting moderate gains at midmorning.
· Nearby live cattle are edging higher as support stems from last week’s strength in cash cattle.
· Cash cattle traded higher for a third straight week last week, though traders will have to wait until later this morning to get the official price.
· Choice boxed prices rose 32 cents to $296.69 cents, while Select dipped 29 cents to $282.08 on Friday, widening the Choice/Select spread to $14.61. Movement totaled 96 loads.
· October live cattle is facing initial support at $183.22, while initial resistance stands at $184.16.
Hog futures are mixed at midsession.
· October hog futures continue to be limited by fading cash fundamentals.
· The CME lean hog index is down 4 cents to $84.03 as of Sept. 26, ending a one-day uptick and marking a new seasonal low.
· The pork cutout value rose $1.11 to $95.75, as strong gains in loins, butts and picnics and ribs more than offset modest declines in hams and bellies. Movement totaled 285.6 loads.
· China’s sow herd stood at 40.36 million head at the end of August, down 4.8% from a year earlier, according to the ag ministry. The sow herd was modestly smaller than the 40.41 million head at the end of July.
· October lean hogs are pivoting around the 10-day moving average of $82.14, while the 200-day moving average of $81.46 continues to serve as support. Initial resistance remains at $82.80.