GRAIN CALLS
Corn: 2 to 4 cents lower.
Soybeans: 1 cent lower to 1 cent higher.
Wheat: Steady to 2 cents lower.
GENERAL COMMENTS: Corn led weakness overnight while soybeans struggled to maintain early bullish momentum. Wheat faced modest selling as well, but prices did not stray far from unchanged in either market. Outside markets are supportive this morning as front-month crude oil futures are modestly higher while the U.S. dollar index is around 425 points lower and is breaking down.
The National Weather Service today said an active winter-like pattern will continue to bring the threat of cold and snowy weather to multiple areas of the country through the end of the week and into the weekend. Moderate to heavy snow will come to both the mountains and adjacent High Plains today. Snow should begin to taper off later this evening and into early Thursday morning. Some wintry precipitation may also spread into portions of the southern High Plains overnight as the system moves into the Plains. Meanwhile, a clipper-like system will pass through the Great Lakes today, leading to lake-enhanced snowfall for favorable downwind locations of the lakes. Some light snow showers will be possible along the trailing cold front southwest through the Midwest into the Middle Mississippi Valley, as well as into the interior Northeast. Some wintry precipitation will be possible where colder air is in place across portions of the Upper Ohio Valley and the southern Appalachians/Mid-Atlantic into early Friday morning, though this remains more uncertain at this time.
Several U.S. soybean cargoes are being prepared for China, according to a ship lineup seen by Bloomberg, after a trade pact agreed upon by the two nations several weeks ago. “The lineup shows six ships expected to be loaded at Gulf Port terminals in the next several weeks, carrying a total of at least 320,000 tons of soybeans to China. Activity is ramping up after purchases have been booked following a meeting in late October between U.S. President Donald Trump and his Chinese counterpart Xi Jinping,” said Bloomberg. The U.S. said China has pledged to buy 12 million tons of U.S. soybeans by year end. China had been avoiding U.S. purchases as it sought to gain leverage in trade talks with the Trump administration, instead favoring South American supplies. “Still, current quantities are far short of what’s been promised, with data from the U.S. Department of Agriculture showing China securing only 2.25 million tons since Oct. 30,” said the Bloomberg report.
Talks between Russian President Vladimir Putin and President Trump’s special envoy Steve Witkoff and son-in-law Jared Kushner on ending the fighting in Ukraine ended after nearly five hours on Tuesday, reports the Associated Press. Putin’s senior adviser Yuri Ushakov called the talks, hosted in Moscow, constructive but added that much work remains, as the Trump administration renews its push to broker a peace deal. Both sides agreed not to disclose the substance of the talks. Ukrainian President Volodymyr Zelenskyy, who said he expects to be briefed on the meeting by the U.S. delegation, is visiting Ireland in his travels to European allies.
CORN: March corn futures gave up a portion of Tuesday’s gain overnight. Support now stands at $4.46 1/2, the 200-day moving average, which was previously key resistance. A close below that level would indicate a false breakout reversal, a bearish technical cue. Resistance stands at the psychological $4.50 mark.
SOYBEANS: January soybeans struggled to maintain early overnight bullish momentum. Resistance stands at $11.28 1/2, the 10-day moving average, while bulls are looking to hold prices above support at $11.22 3/4, the 20-day moving average.
WHEAT: March SRW wheat continues to face stiff resistance at $5.40, which has capped the upside since Nov. 20. A break above that level targets resistance at $5.45. Support comes in at $5.35 on a push lower.
LIVESTOCK CALLS
CATTLE: Higher.
HOGS: Choppy/higher.
CATTLE: Live cattle futures are expected to open higher in a continuation of recent strength. Technical momentum has shifted and now favors the bulls, with futures trading well above last week’s five-area average. Cash cattle trade has had a bullish start to the week with trade initiating at $215.00, sharply above last week’s average of $211.53. Wholesale beef ended Tuesday lower with choice cutout plunging $4.17 to $364.72 while select sunk $7.10 to $350.78.
HOGS: Lean hog futures are expected to open with a mostly firmer tone, supported by technical buying. Losses stopped just shy of the 10-day moving average, currently at $80.05, Tuesday in February futures, which is likely to spur strength today. The CME lean hog index is down another 6 cents to $81.61 as if Dec. 1, showing a decline in the daily losses, as traders prep for a seasonal low which typically occurs around the new year. Pork cutout slid 57 cents to $94.22 Tuesday, led by losses in bellies and loins, though all other cuts saw gains.