GRAIN CALLS
Corn: 1 to 3 cents higher.
Soybeans: 6 to 8 cents higher.
Wheat: 6 to 9 cents higher.
GENERAL COMMENTS: Soybeans climbed to a 3-month high overnight and continue to lead strength. Wheat made up all of Tuesday’s losses and more while corn struggled to garner much of a bullish footing. The anticipation of another year of high corn acres is limiting the upside. Outside markets are mixed this morning as front-month crude oil futures are higher while the U.S. dollar index is around 140 points higher.
The U.S.-Iran nuclear talks in Geneva on Tuesday “made progress,” but “there are still a lot of details to discuss,” a U.S. official told Axios. After negotiations with President Trump’s envoys Jared Kushner and Steve Witkoff, the Iranians offered to come back in the next two weeks with detailed proposals “to address some of the open gaps in our positions,” the official said. Earlier Tuesday, Iran’s foreign minister Abbas Araghchi claimed that the two sides had agreed on the “guiding principles” for a potential nuclear deal, said Axios. Omani foreign minister Badr Albusaidi, who mediated the talks, said that the second round of negotiations ended “with good progress towards identifying common goals and relevant technical issues.”
Japan plans to invest up to $36 billion in U.S. oil, gas and critical mineral projects, the first tranche of its $550 billion commitment under the trade agreement it struck with President Trump. “The investments include a natural gas facility in Ohio, a deepwater crude export facility in the Gulf of Mexico, and a synthetic industrial diamond manufacturing facility, which are designed to build resilient supply chains and promote mutual benefits between Japan and the U.S,” Bloomberg reported. “The projects are expected to generate significant economic benefits, including power generation, crude exports, and advanced industrial production, and are seen as a key step forward for the trade and economic pact between the two countries,” said the report.
CORN: March corn futures saw modest strength overnight. Bulls struggled to tackle initial resistance at $4.29, the 10-day moving average. Stiff support persists at yesterday’s low of $4.26 1/4.
SOYBEANS: March soybeans pushed to a fresh high overnight. Initial resistance stands at the overnight high of $11.44 while additional strength targets the psychological $11.50 level. Support comes in at $11.30 on a turn lower.
WHEAT: March SRW futures made up all and more of Tuesday’s loss overnight. Resistance stands at $5.50 on persistent strength. Support comes in at $5.39 3/4 on a reversal back lower.
LIVESTOCK CALLS
CATTLE: Choppy/higher.
HOGS: Choppy/higher.
CATTLE: Live cattle futures are expected to open with a mostly firmer tone in a continuation of recent strength, though technical headwinds could limit gains after the open. Stiff resistance stands at $244.00, which capped most gains Tuesday. A lower close this afternoon would be a bearish indication as bulls failed to take out the Feb. 4 high yesterday. Cash trade remains abysmal so far this week with little trade taking place. Choice cutout meanwhile fell under pressure Tuesday, falling $3.01 to $364.76.
HOGS: Lean hogs are expected to open with a mostly firmer tone in a continuation of Tuesday’s strength. Lackluster strength in the cash market could continue to undercut gains in futures as the CME lean hog index is up just 8 cents to $87.13 as of Feb. 16. Pork cutout continues to chop near $95.00, falling 97 cents to $95.88 Tuesday, led by losses in bellies. That lack of direction is doing little to direct the futures market.