GRAIN CALLS
Corn: 4 to 6 cents higher.
Soybeans: 5 to 7 cents higher.
Wheat: Winter wheat 13 to 16 cents higher; spring wheat 6 to 8 cents higher.
GENERAL COMMENTS: Gains were seen across the grain and soy complex overnight with each surging to fresh for-the-move highs. Strength was seen across the commodity complex, with front-month crude oil futures surging over $2.00 higher. The U.S. dollar index is up around 50 points this morning, leading to little impact on the ag commodities.
USDA reported daily export sales of 257,000 MT of corn for delivery to unknown destinations during the 2025-26 marketing year.
Producer inflation increased 0.5% month-over-month in January, following a 0.4% rise in December and well above forecasts. Price gains in services led producer inflation higher, while prices of goods actually fell, led by falling fuel prices. Year-on-year, producer prices rose 2.9%, the least in three months. Core producer prices, which exclude food and energy, rose 0.8%, the most in six months. On the year, core PPI rose 3.6%, above December at 3.3% and well above market forecasts. While headline inflation rose less than expected, largely due to falling fuel prices, the persistent gains in core PPI is concerning and further indicates the Fed will be patient in cutting rates further.
The U.S. and Iran will continue nuclear talks next week after making “significant progress” in Switzerland, mediator Oman said and as reported by Bloomberg. Negotiations will resume at a technical level in Vienna after an initial consultation period, according to Oman’s Foreign Minister Badr Albusaidi. “The U.S. team has tough demands for the Iranians, including that they destroy three main nuclear sites and that any nuclear deal must last forever and not have so-called sunset clauses,” said the report. Iran said it won’t allow any of its highly enriched uranium to be moved out the country, Press TV said, citing Esmail Baghaei, a spokesman for Iran’s Ministry of Foreign Affairs. U.S. officials are yet to comment publicly, though have previously signaled Iran would have to send such stocks of uranium to another nation or dilute them.
China said it would drop tariffs on Canadian canola meal and lobsters, easing disruptions to agricultural trade after Prime Minister Mark Carney’s January visit, Bloomberg reported. The halt — which also applies to peas and crabs — will take effect from March 1 to Dec. 31, the Chinese government said today. It comes after Canada pledged tosignificantly cut import duties on 49,000 Chinese electric vehicles, helping to repair a trade rift that has tested relations between the nations. “However, it remains unclear what level China will lower tariffs to on rapeseed itself, a crop known as canola in Canada. Carney had signaled that duties on the product would be dropped to 15% as of March 1, a significant reduction,” said the report. China is willing to work with Canada to “push for the healthy, stable and sustainable development of China-Canada ties,” a Ministry of Commerce spokesperson said in a statement. Canada is the world’s largest exporter of the oilseed. Traders in China have already begun booking cargoes in anticipation of the change, said Bloomberg.
CORN: May corn futures climbed to fresh highs overnight. Resistance stands at the 200-day moving average at $4.49 3/4 on continued strength. Support comes in at $4.44 1/4, the 100-day moving average, on a turn lower.
SOYBEANS: May soybeans pushed higher overnight. Bulls are eyeing yesterday’s high of $11.72 3/4, which is backed by the psychological $11.75 mark. Support comes in at $11.54 on a reversal lower.
WHEAT: May SRW futures surged to fresh highs overnight. Next resistance stands at $5.98, quickly backed by the psychological $6.00 mark. Support stands at the prior high of $5.83 1/2 then $5.80 1/4.
LIVESTOCK CALLS
CATTLE: Choppy/higher.
HOGS: Choppy/lower.
CATTLE: Live cattle futures are expected to open with a mostly firmer tone, supported by strength in cash fundamentals, though followthrough selling could limit gains after the open. Following Thursday’s rout, cattle futures are trading well below the cash market, which initiated trade at $245.00 this week. Meanwhile, choice beef gave up a portion of recent gains yesterday, falling $1.34 to $377.89.
HOGS: Lean hogs are expected to open with a mostly weaker tone amid persistent profit-taking. Bulls are looking to rebound following Thursday’s setback though some additional profit-taking is possible. The CME lean hog index is up another 36 cents to $88.71 as of Feb. 25. Pork cutout meanwhile is struggling to hold onto early week gains, slipping 24 cents to $97.38, led by a $6.24 drop in ribs.