Corn futures are 2 to 3 cents lower at midmorning.
- Corn futures are lower amid persisting technical selling and spillover weakness from wheat.
- Buyer interest is limited as traders start to prepare for next Monday’s Prospective Plantings and Grain Stocks Reports, along with President’s Trump’s expected reciprocal tariffs on April 2.
- Ethanol production averaged 1.053 million barrels per day (bpd) during the week ended March 21, down 52,000 bpd (4.7%) from the previous week and 1,000 bpd below the same week last year. Ethanol stocks rose 775,000 barrels to 27.35 million barrels.
- Overnight, Taiwan purchased 65,000 MT of corn expected to be sourced from the U.S., while South Korea tendered to buy up to 280,000 MT — 140,000 MT to be sourced from the U.S., South America or South Africa and 140,000 MT to be sourced from South America or South Africa.
- May corn futures are testing support at the 200-day moving average of $4.54 1/4. Resistance stands at the 10- and 20-day moving averages, trading at $4.61 1/2 and $4.63 1/4.
Soybeans are mostly 2 cents higher. Soymeal futures are less than $1.00 higher, while soyoil is around 30 points higher.
- Soybean futures are firmer amid support from corrective buying, along with strength in meal and soyoil.
- President Trump said he plans to limit exceptions to the planned April 2 reciprocal tariffs on global trading partners. “I know there are some exceptions, and it’s an ongoing discussion, but not too many, not too many exceptions,” Trump said in an interview with Newsmax. Concerns over impacts from tariffs on demand for U.S. soybeans are limiting buyer interest.
- Argentina will see a wet weather pattern through Monday and additional improvements in crop and soil conditions will occur in the direr areas of the north while moist soils and favorable conditions for crop development occur elsewhere, according to World Weather Inc.
- May soybean futures are finding support at $9.97 1/2, while the 10- and 20-day moving averages, currently trading at $10.09 3/4 and $10.15 1/4 continue to serve as resistance.
Winter wheat futures are mostly 6 to 8 cents lower. Spring wheat is 3 to 6 cents lower.
- Wheat futures are being pressured by prospects for a ceasefire between Russia and Ukraine, which could free up more exports from the Black Sea region.
- Dryness in HRW wheat areas continues, despite some recent precip, notes World Weather.
- Moisture reserves in most Ukrainian regions were sufficient or optimal as of March 20, according to state agricultural meteorologists, allowing for sowing of spring crops.
- Overnight, Jordan tendered to buy up to 120000 MT of optional origin milling wheat.
- May SRW futures have extended below support at $5.39 1/2 for the first time since March 5, with additional support at $5.36, which is backed by the March 4 low of $5.30. Initial resistance stands at $5.44 1/2.
Live cattle are marking mostly moderate gains, while feeders are mostly higher.
- Nearby live cattle are posting gains, powered by wholesale and cash market strength.
- Choice boxed beef prices surged another $8.09 to $335.19 on Tuesday, continuing the recent sharp price climb. Select beef firmed 47 cents to $314.05. Choice beef has surged $24.42 since Feb. 21 to the highest level since June 2023.
- USDA’s Cold Storage Report showed 428.1 million lbs. of beef in frozen storage at the end of February, down 27.0 million lbs. from January versus the five-year average decline of 10.6 million pounds. Beef inventories declined 9.9 million lbs. (2.3%) from February 2024 and 69.2 million lbs. (13.9%) from the five-year average.
- April live cattle are being limited by resistance at $207.68, while the 10-day moving average of $205.68 serves as initial support.
Hog futures are slightly higher at midsession.
- Nearby lean hogs are higher on support from firmer cash fundamentals.
- The CME lean hog index is up 11 cents to $88.90 as of March 24.
- Pork cutout firmed 18 cents to $97.55 on Tuesday, led by gains in primal bellies.
- USDA’s Cold Storage Report showed pork stocks totaled 423.1 million lbs., up 15.9 million lbs. from January, slightly less than the five-year average increase of 17.9 million lbs. for the month. Pork stocks declined 35.5 million lbs. (7.7%) from year-ago and 94.8 million lbs. (18.3%) from the five-year average.
- April lean hogs continue to face resistance at $87.07, while support remains at the 20-day moving average of $85.91.