GRAIN CALLS
Corn: 3 to 5 cents lower.
Soybeans: 4 to 6 cents lower.
Wheat: 2 to 4 cents lower.
GENERAL COMMENTS: Corn, soybeans and wheat each saw a continuation of Monday’s report driven selling pressure overnight. Soybeans are trading near the Jan. 2 for-the-move low, a key technical level. Outside markets are mixed this morning as front-month crude oil is higher and near a two-month high, while the U.S. dollar index is around 100 points higher.
USDA reported daily sales of 168,000 MT of soybeans for delivery to China and 152,404 MT of soybeans for delivery to Mexico, each during the 2025-26 marketing year.
U.S. annual inflation remained at 2.7% in December, steady with November and in line with expectations. The Consumer Price Index (CPI) noted prices eased in the energy sector, driven by lower gas prices, while food prices remain persistently high, with strong gains seen in steaks, which were up 3.1% from November. On a monthly basis, CPI edged up 0.3%. Core CPI, which excludes food and energy prices, rose 0.2%, below forecasts of 0.3%. On an annual basis, Core CPI remained steady at 2.6%, the lowest since March 2021.
President Trump’s announcement on Monday of new tariffs on goods from countries trading with Iran risks derailing his one-year trade truce with China, the world’s top buyer of Iranian oil. “Any Country doing business with the Islamic Republic of Iran will pay a tariff of 25% on any and all business being done with the United States of America,” Trump posted on social media Monday and as reported by Bloomberg. The levy is “effective immediately,” he added, without elaborating on the scope or implementation of the charges. It’s unclear if Trump will stack the latest tariffs on top of existing rates or announce carve-outs for China, after his administration previously signaled higher fees could inflict domestic pain. If the U.S. doesn’t respect its deal with China, Beijing has the right to take “appropriate action,” said Zhou Mi, a senior researcher at a think tank affiliated with the Ministry of Commerce.
Global central bankers threw their support behind Federal Reserve Chairman Jerome Powell after the Trump administration ratcheted up its already unprecedented pressure campaign against the Fed. Reacting to the threat of criminal charges being leveled at Powell and the Fed, central banks, including the European Central Bank and the Bank of England, said in a statement they “stand in full solidarity” with the Fed and Powell. Powell, himself, has also adopted a combative tone in recent days, accusing President Trump of seeking to wrest control over U.S. monetary policy after complaining for months that interest rates are too high.
CORN: March corn futures saw continued selling pressure overnight stemming from Monday’s bearish USDA reports. Support stems from $4.10 3/4 on continued selling. Resistance stands at $4.25 on a corrective bounce.
SOYBEANS: March soybeans saw a continuation of Monday’s weakness overnight. Support stems from the Jan. 2 for-the-move low of $10.38. Resistance comes in at the psychological $10.50 mark then $10.57 1/4.
WHEAT: March SRW futures saw followthrough selling overnight. Support stems from $5.05 then the psychological $5.00 mark. Resistance stands at $5.13 1/2 then $5.16 1/2 on resurgent strength.
LIVESTOCK CALLS
CATTLE: Choppy/higher.
HOGS: Choppy/higher.
CATTLE: Live cattle futures are expected to open with a mostly firmer tone in a continuation of recent strength. Bulls defended technical support on Monday and persistent strength in cash fundamentals is expected to continue to underpin futures. Last week’s cash cattle average boasted another week-over-week gain, rising 18 cents to $231.86. Boxed beef same impressive strength Monday, particularly in select, which rose $5.88 to $358.05, actually surpassing choice beef, which was up $1.48 to $357.11.
HOGS: Lean hog futures are expected to open with a mostly firmer tone, supported by technical buying. Some followthrough selling is possible given continued weakness in the CME lean hog index, which is pushing to fresh lows despite the norm for seasonal strength this time of year. The index is down another 25 cents to $80.60. Pork cutout did rise 78 cents to $93.10 Monday, led by strength in picnics.