GRAIN CALLS
Corn: 1 to 3 cents higher.
Soybeans: 1 cent lower to 1 cent higher.
Wheat: 1 to 3 cents higher.
GENERAL COMMENTS: Corn, soybeans and wheat each saw an extension of Monday’s gains early in the overnight session, though saw some profit-taking going into the break. The market remains focused on China’s buying of U.S. soybeans, as the country would need to book several cargoes a day to meet the 12 MMT agreement. Outside markets are supportive this morning as front-month crude oil futures are modestly higher while the U.S. dollar index is around 125 points lower.
USDA reported daily sales of 792,000 MT of soybeans for delivery to China during the 2025-26 marketing year.
China has bought nearly 1 million MT of U.S. soybeans, a move that ends a temporary pause and appears to signal commitment to a trade truce agreed late last month. State-owned agriculture trader Cofco Group booked nearly 20 cargoes of U.S. soybeans on Monday for delivery in December and January, according to people familiar with the matter who asked not to be identified because they’re not authorized to speak to media, and as reported by Bloomberg. The shipments were from Pacific Northwest ports and Gulf Coast terminals in the U.S., they said. The purchases have reignited market optimism around the soybean trade between the two agricultural powerhouses, which was worth more than $12 billion last year and will underpin any trade agreement.
Initial jobless claims in the U.S. totaled 232,000 for the week ending October 18th, remaining firmly above the averages from the period since the end of the second quarter. It was the first data update by the Department of Labor since the U.S. government shut down its federal operations the first day of October, which risked the employment standing for a large portion of federal government workers. With the new entries, outstanding unemployment claims rose to 1.957 million in the previous week on non-seasonally adjusted basis, remaining relatively close to the highest level since 2021, and aligning with other evidence of lower hiring activity in the U.S. economy, according to the U.S. Department of Labor.
CORN: December corn worked higher overnight. Resistance stands at $4.39 then $4.40. Bulls are looking to hold support at $4.33 on a turn lower.
SOYBEANS: January soybeans pushed to fresh highs overnight. Bulls are looking to overcome the overnight high of $11.69 1/2 before tackling psychological resistance at $10.75. Support comes in at $11.50 on a reversal lower.
WHEAT: December SRW saw followthrough buying overnight. Bulls are eyeing resistance at $5.50 then $5.54 3/4 on continued strength. Support stands at $5.37 1/4 on a reversal lower.
LIVESTOCK CALLS
CATTLE: Higher.
HOGS: Mixed.
CATTLE: Cattle futures are expected to open higher in a continuation of recent strength. Bulls are looking to topple key resistance at $227.35 in December futures to negate the ongoing downtrend. Last week’s cash cattle average was $225.06, down another $3.64. Futures are not likely to trade above cash until the cash market posts a week-over-week gain. Wholesale beef ended Monday mixed with choice sliding 32 cents to $370.41 while select rose $2.06 to $356.30.
HOGS: Lean hog futures are expected to open with a mixed tone. Bulls struggled to garner much momentum the past couple of days while futures continue to trade near recent lows. Initial resistance stands at $79.87 in December futures. The CME lean hog index is down another 94 cents to $87.00 as of Nov. 14. The accelerated decline in the index has been weighing on prices. Pork cutout slid another 21 cents to $97.01 Monday, led by losses in butts.