GRAIN CALLS
Corn: Steady to 2 cents lower.
Soybeans: Steady to 2 cents lower.
Wheat: 1 cent lower to 1 cent higher.
GENERAL COMMENTS: Consolidation was seen across the grain and oilseed complex overnight following big gains on Thursday. Additional sideways action is possible today but prices still look to close out near this week’s highs. Outside markets are mixed this morning with front-month crude oil futures near unchanged, the dollar index modestly lower and equity futures solidly higher.
Annual inflation, measured by the Consumer Price Index (CPI), rose less than expected in September. CPI rose 3.0% on an annual basis, the highest since January and up from 2.9% in August. Price increases in energy prices led inflation higher. Meanwhile, food price inflation slowed. Core CPI, which does not include food and energy, actually fell 0.1% to 3.0% in September. Inflation continues to pace well above the Federal Reserve’s target, but that is not expected to thwart the central bank from cutting interest rates this week.
President Trump said on Truth Social late Thursday he would immediately halt all trade negotiations with Canada, citing a Canadian advertisement against his signature tariffs plan featuring the voice of former President Ronald Reagan. The ad, funded by the government of Ontario, uses excerpts from an address Reagan gave in 1987 in which he defended the principles of free trade and slammed tariffs as an outdated idea. Trump’s announcement injected fresh uncertainty into one of the world’s largest bilateral trading relationships, with the U.S. and Canada exchanging more than $900 billion in goods and services last year. “TARIFFS ARE VERY IMPORTANT TO THE NATIONAL SECURITY, AND ECONOMY, OF THE U.S.A.,” Trump wrote. “Based on their egregious behavior, ALL TRADE NEGOTIATIONS WITH CANADA ARE HEREBY TERMINATED.” Funded by the government of Ontario, the ad seeks to sow doubt among Republican voters by using one of the party’s most iconic voices, reported Bloomberg.
China will seek to maintain a certain rate of growth and expand consumption’s share of the economy as authorities draft the next five-year development blueprint, a senior official said and as reported by Bloomberg. The aim is to achieve high-quality growth where the expansion is kept within a “reasonable range” and the share of household consumption “rises significantly,” Han Wenxiu, deputy director in charge of daily work at the Office of the Central Financial and Economic Affairs Commission, said at a briefing Friday. The briefing followed a four-day conclave of ruling Communist Party’s elites to approve the outlines for drafting China’s economic plan for the 2026-2030 period. Beijing is signaling a determination to deepen its manufacturing and tech push as it looks to maintain competitive advantages. Boosting the domestic market has become also more urgent to maintain sustainable growth amid rising global trade protectionism.
CORN: December corn gapped lower overnight. Support stands at $4.25 on persistent selling pressure, while resistance comes in at $4.30.
SOYBEANS: November soybeans saw profit-taking overnight. Bulls will try to keep the downside limited, with support at $10.40 and $10.34. Resistance comes in at the psychological $10.50 mark.
WHEAT: December SRW wheat saw action on either side of unchanged overnight. Bulls are looking to build on recent strength and tackled 40-day moving average resistance at $5.15. Support stands at $5.08 1/4 on a reversal lower.
LIVESTOCK CALLS
CATTLE: Choppy/lower.
HOGS: Choppy/lower.
CATTLE: Cattle futures are expected to open with a mostly weaker tone in a continuation of recent selling pressure. Reports that Mexico’s ag minister is coming to the U.S. in an attempt to re-open the southern border for cattle imports is likely to weigh on prices as well. Price action in cattle continues to be dictated by headlines. Cash cattle trade picked up the last couple days, pointing to another likely week-over-week gain. Wholesale beef ended Thursday higher, with choice and select posting modest strength.
HOGS: Lean hog futures are expected to open with a mostly weaker tone in a continuation of recent selling pressure. Hogs hit a two-month low on Thursday as fundamental weakness as technical headwinds continue to weigh on the market. Pork cutout slid another 4 cents to $99.71 Thursday, led by losses in loins and bellies. The CME lean hog index is down another 55 cents to $93.63 as of Oct. 22.