GRAIN CALLS
Corn: Unchanged to 4 cents higher
Soybeans: Unchanged to 4 cents higher
Wheat: 6 to 10 cents lower
GENERAL COMMENTS: Corn and soybeans saw rangebound trade overnight, teetering on either side of unchanged. Wheat saw less favorable price action as prices continued to trend lower overnight, dragging nearby SRW firmly below the key $6.00 mark. Key outside markets see nearby West Texas crude oil futures roughly 50 cents higher at $91.10 per barrel, and the U.S. dollar index 70 points higher at 102.25.
USDA this morning reported the sale of 136,000 MT of soybeans for delivery to China during the 2026/27 marketing year. USDA also reported the sale of 101,000 MT of corn for delivery to unknown destinations during the 2026/27 marketing year.
Congressional Democrats, fresh off this week’s midterm sweep, are taking aim at President Donald Trump’s trade war with Canada as a first target in a campaign to roll back the administration’s trade agenda, the Wall Street Journal reported. Sen. Ron Wyden of Oregon said he was “already talking” with colleagues about legislation that would push against Trump’s second-term levies on Canadian products. It isn’t clear Democrats could get the 60 votes needed to override a Senate filibuster, much less the two-thirds majorities in the House and Senate needed to override a presidential veto. The report said Democrats are confident they can encourage Republican defections by forcing votes on unpopular trade items in an effort to build momentum toward larger changes.
Nutrien, the world’s largest potash producer, posted quarterly earnings Thursday that came in below analyst expectations as it deals with global fertilizer production challenges, Reuters reported. A slump in fertilizer sales and higher sulfur and other production costs were a drag on profitability, the report said. Third-quarter earnings of 61 cents a share compared to expectations of 80 cents. The Canada-based company said financially squeezed farmers put off nitrogen fertilizer purchases, especially in Brazil, though global demand for potash, its main product, remains strong.
Declines in cereal, dairy and meat prices due to weaker import demand saw world food prices fall slightly in October, the United Nations’ Food and Agriculture Organization said on Friday. The FAO Food Price Index, which tracks monthly changes in international prices for a basket of food commodities, averaged 133.9 points in October, down from a revised 135.6 in September. Compared to a year earlier, the FFPI stood 7.5 points (5.9 percent) higher but remained 26.3 points, or 16.4%, below its March 2022 peak.
CORN: December corn is trading sideways as it works to find a bottom. Support is at $4.40, then the June low close of $4.30. Resistance stands at the 10-day exponential moving average of $4.48.
SOYBEANS: January soybeans are looking to bounce following nine consecutive sessions of losses. Support is at the August low close of $11.84 1/4. Resistance at $12.00 then the 10-day moving average of $12.18 3/4.
WHEAT: December SRW wheat is faltering as technical support in the $6.00 area gave way. Support now stems from the psychological $5.80 area. The $6.00 mark now serves as resistance, backed by further resistance at the 10-day moving average of $6.05 3/4.
LIVESTOCK CALLS
CATTLE: Choppy/lower
HOGS: Choppy/lower
CATTLE: Live and feeder cattle futures are expected to open choppy to lower In a continuation of the downtrend seen this week. Choice boxed beef fell another 94 cents yesterday afternoon to $361.56. Cash cattle trade also remains weaker from the prior week, which has not been helped by another minor drop in slaughter compared to last week as well.
HOGS: Lean hog futures are expected to open choppy to lower today. Hogs have experienced consecutive sessions of sharp drops, driving them nearer the lows marked in the summer of 2020 which could eventually act as long-term support. Cash fundamentals continue to wane with the CME lean hogs index down $1.06 to $63.93.