GRAIN CALLS
Corn: 2 to 4 cents lower.
Soybeans: 1 cent lower to 1 cent higher.
Wheat: Winter wheat 6 to 8 cents lower; HRS 3 to 5 cents lower.
GENERAL COMMENTS: Profit-taking was seen across the grain complex overnight while soybeans held onto most of yesterday’s gains. Soy bulls are looking to hold prices above $13.00 while corn bulls seek to maintain prices above the psychological $5.00 mark. Front-month crude oil futures are modestly higher this morning and back above the $90-mark while the U.S. dollar index is over 600 points higher.
Iran has increased the pace of attacks on tankers in the Strait of Hormuz in recent days, Bloomberg reported, noting that U.K. Maritime Trade Operations has reported nine attacks so far this month. The report said the impact of the escalated attacks on Hormuz shipments and flows of seaborne gas is uncertain. Oil flows through the Strait of Hormuz have steadily increased since early summer, with some Wall Street banks pegging shipments near prewar levels. Vice President JD Vance told Reuters in an interview that any agreement to reopen the strait and end the war would require Tehran to reduce its ability to enrich uranium rather than merely offer assurances of future nuclear drawdowns. Oil futures were up slightly early Wednesday morning, with Nymex WTI crude trading just above $90 a barrel.
Conditions across the western to central U.S. remain well above average for October with widespread highs in the 70s and 80s, the National Weather Service said. Some daily record highs will be challenged or broken. Meanwhile, tropical moisture interacting with a quasi-stationary boundary through Florida will continue to lead to widespread thunderstorms across most of the Florida Peninsula and parts of the Panhandle into coastal southeastern Georgia through the next couple of days. This occurs as Tropical Storm Isaias is forecast to intensify over the southwestern Gulf and begin tracking toward the central portion of the Gulf Coast region. Otherwise, the rest of the country will be mostly dry through mid-week with only some widely scattered showers expected over the central Rockies/Four Corners region, and from the upper Great Lakes to northern New England today as a frontal system moves through. Some showers will begin to develop over the north-central Plains by early Friday morning as a low-pressure system develops on the lee side of the northern Rockies.
House Agriculture Committee Chair G.T. Thompson (R-Pa.) remains committed to seeking a waiver to retain his leadership position on the panel, regardless of whether House Republicans hold the majority, according to Politico’s Morning Ag newsletter. Despite pushback from some GOP colleagues regarding extensions past the party’s decades-old six-year term limit, Thompson pointed out a key paradox: Steering Committee members who decide on these extensions can themselves receive waivers to remain on that panel. Confident in his record, Thompson believes his continued leadership is well-earned, asserting that the Republican Party remains grounded in merit and opportunity.
CORN: December corn found resistance at $5.10 1/4, the 10-day moving average yesterday, which spurred profit-taking. Support comes in at $5.00 then the 100-day moving average at $4.96 1/4 on continued selling pressure.
SOYBEANS: November soybeans are struggling to garner much bullish momentum above $13.00. Resistance stands at $13.10 on a push higher while bulls are looking to hold support at $12.96 1/2 on a push lower.
WHEAT: December SRW wheat found resistance at the 40-day moving average at $7.04 3/4. That capped gains on Tuesday. Bulls are looking to hold support at $6.97 then $6.92 1/4 on a push lower.
LIVESTOCK CALLS
CATTLE: Choppy/higher.
HOGS: Choppy/higher.
CATTLE: Live and feeder cattle futures are expected to open with a mostly weaker tone amid a return of technical sellers. Bulls rallied prices to the higher end of the ongoing sideways range. That could spur sellers again. Cash cattle trade has had a slow start to the week with no reported trade taking place. Futures are trading well above last week’s cash average, which could weigh on futures as well. Choice beef rose 67 cents to $378.93 Tuesday.
HOGS: Lean hog futures are expected to open with a mostly firmer tone as technical support remains firm under the market. The 10-day moving average limited the downside on Tuesday, which remains firm support today. The CME lean hog index is down another 17 cents to $79.22 as of Oct. 5, extending the seasonal slide. Pork cutout slid $2.17 to $83.84 Tuesday, led by losses in picnics and hams.