GRAIN CALLS
Corn: 1 to 3 cents lower.
Soybeans: 6 to 8 cents lower.
Wheat: Steady to 3 cents higher.
GENERAL COMMENTS: Corn and soybeans favored the downside overnight while wheat saw relative strength. Corn bulls are seeking to hold prices above the $5.00 mark on a bounce. Front-month crude oil futures are trading solidly lower this morning while the U.S. dollar index is around 235 points lower.
USDA reported daily export sales of 218,600 MT of corn for delivery to Mexico, with 173,800 MT for delivery during 2026-27, 22,400 MT for delivery during 2027-28 and the remaining 22,400 MT for delivery during 2028-29.
The U.S. economy added 29,000 jobs in September following a downwardly revised 133,000 job increase in August. That was well below forecasts of 90,000 jobs. The unemployment rate rose to 4.2% in September, up from 4.1% in August and above market expectations. More people are entering the workforce, which partially helped lift the unemployment figure. Stocks surged higher and the U.S. dollar index sank after the number as a weaker job market could give the Fed some flexibility in leaving interest rates steady in the October Fed meeting, while a hike was previously expected.
Oil futures were down more than 3% and diesel futures fell sharply in the U.S. and Europe Friday morning after news reports of a potential release of diesel and crude stocks. Reuters reported that European Union member states were discussing a French proposal to release additional diesel reserves. The Trump administration this week reportedly told European officials it would impose a ban on U.S. diesel exports unless the EU moved to release emergency fuel stockpiles. Politico reported that France, during a meeting of senior European energy officials on Friday, suggested EU countries release 50 million barrels of crude oil and 50 million barrels of diesel, the report said, and comes after U.S. Energy Secretary Chris Wright asked European countries to release 120 million barrels from stockpiles over a three-month period or else face export restrictions. November Nymex diesel futures were down 2.9%.
Consumer prices across the 20 countries that share the euro currency were up 3.8% in September from their level a year ago,, after escalating conflicts in the Middle East and Black Sea sent oil and natural gas prices surging. Inflation accelerated from 3.2% in August and topped the 3.6% average forecast produced by a Wall Street Journal survey of economists. Eurostat said energy prices were up 18.8% year over year. The European Central Bank last month raised its benchmark interest rate for a second time to 2.5%, citing rising energy costs as inflation runs above its 2% target.
CORN: December corn is poking below $5.00 once again. Support stands at $4.95 3/4, the 100-day moving average. Bulls are looking to break prices back above $5.14 on a bounce.
SOYBEANS: November soybeans hit a fresh low overnight. Bulls are looking to hold support at $12.77 1/4, the 40-day moving average, then $12.75. Resistance comes in at $12.97 on a bounce, which is quickly reinforced by resistance at $13.00.
WHEAT: December SRW wheat continue to see corrective buying. Prices are still in a downtrend on the daily bar chart. Resistance stands at $6.96 3/4 on continued strength. Support comes in at yesterday’s low of $6.70 3/4 on resurgent selling.
LIVESTOCK CALLS
CATTLE: Choppy/lower.
HOGS: Choppy/higher.
CATTLE: Live and feeder cattle futures are expected to open with a mostly weaker tone as technical sellers are likely to sell recent strength. Cash cattle trade picked up mid-week at weaker prices as well, which is likely to undercut futures’ strength. Slaughter continues to pick up as the week goes on. Choice beef plunged $6.00 to $376.79 Thursday, likely playing a role in the weaker cash cattle market.
HOGS: Lean hog futures are expected to open with a mostly firmer tone in a continuation of late session strength on Thursday. December futures are well below the cash market, which could spur additional strength, but bears are still in control of the technical advantage. The CME lean hog index is down another 24 cents to $90.71 as of Sept. 30, extending the seasonal slide after yesterday’s stabilization. Pork cutout rose 34cents to $85.29 Thursday, led by gains in butts.