GRAIN CALLS
Corn: 1 to 3 cents lower.
Soybeans: 1 cent lower to 1 cent higher.
Wheat: 1 cent lower to 1 cent higher.
GENERAL COMMENTS: Corn, soybeans and wheat each saw consolidation following the big move higher on Friday. Additional consolidation today is possible. Soybeans continue to trend higher on the daily bar chart, leading strength. Outside markets are mixed this morning as front-month crude oil futures are modestly lower while the U.S. dollar index is around 420 points lower and at a 4-month low.
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World Weather Inc. this morning said in a special report that “bitter cold conditions over multiple days without significant snow on the ground may have left U.S. wheat vulnerable to damage from Montana to Nebraska and across the lower Midwest. Damage assessments will not be possible prior to spring and even then it will be difficult to know the impact because of the potential for some crops to recover. This week’s weather will slowly improve in the Plains, while the Midwest (now snow covered) remains cold.”
President Trump is scheduled to give a speech in Clive, Iowa, around midday Tuesday. He may face tough questions on the administration’s position on the use of E15 ethanol gasoline on a year-round basis. Farm leaders and ethanol supporters were livid late last week after last-minute wrangling saw House lawmakers drop language from funding legislation that would have provided authorization for year-round E15 use. As a compromise, House GOP leadership agreed to appoint a working group, giving it a goal of coming up with standalone legislation next month. E15 sales currently face limits during summer months due to air quality regulations.
President Trump on Saturday warned Canada of 100% tariffs in a social media post, saying that if Carney “thinks he is going to make Canada a ‘Drop Off Port’ for China to send goods and products into the United States, he is sorely mistaken.” Canada has agreed to lower tariffs on 49,000 Chinese electric vehicles to 6%, removing a 100% surtax, as part of a deal aimed at rebuilding ties with Beijing. U.S. Treasury Secretary Scott Bessent on Sunday warned that Canada could face 100% tariffs from the U.S. if the country enters into a free-trade agreement with China and allows itself to become a place where artificially cheap goods can enter the US supply chain. The moves by the U.S. followed a speech by Canadian President Mark Carney during the World Economic Forum in Davos last week, when he spoke about the need for middle powers to band together to counter aggressive coercion by the world’s superpowers. The Canadian leader didn’t mention any countries by name, but his comments were widely interpreted as aimed at the U.S.
CORN: March corn futures gave up some of Friday’s gain overnight. Bulls found stiff resistance at $4.31 3/4, the 20-day moving average, overnight. Bulls are looking to hold support at $4.27 1/2 on continued selling, which is reinforced by $4.25.
SOYBEANS: March soybeans continue to work higher on the daily bar chart. Prices found stiff resistance at $10.72 3/4, the 40-day moving average, overnight. Bulls are looking to hold support at $10.60 1/2 on selling pressure.
WHEAT: March SRW futures saw modest profit-taking overnight. Bulls found stiff resistance at the 100-day moving average overnight at $5.33 3/4, a key technical level today. Support comes in at $5.25 then $5.21 on profit-taking.
LIVESTOCK CALLS
CATTLE: Choppy/higher.
HOGS: Choppy/higher.
CATTLE: Live cattle futures are expected to open with a mostly firmer tone, supported by a friendly Cattle on Feed report from USDA on Friday. USDA reported cattle and calves on feed for feedlots with capacity of 1,000 or more head totaled 11.45 million head on Jan. 1, 2026, 3.2% below the level seen a year ago. Placements in feedlots during December totaled 1.594 million head, down 5.4% from the same month in 2024. Net placements were 1.50 million head. Marketings of fed cattle during December totaled 1.77 million head, 1.8% above 2024, while other disappearance of 58,000 head in December was 2% below 2024. Cash cattle trade into Friday remained light, but USDA will release last week’s cash average later this morning. Wholesale beef continues to work higher, with choice cutout rising $1.47 to $368.92 Friday while select climbed 66 cents to $362.39. While beef prices have been working higher, packer margins remain deep in the red.
HOGS: Lean hogs are expected to open with a mostly firmer tone in a continuation of the recent uptrend, though additional consolidation can’t be ruled out. The CME lean hog index is up another 55 cents to $83.62 as of Jan. 22. Pork cutout has shown signs of strength recently as well, encouraging bulls. Pork cutout rose $1.13 to $95.75 Friday, led by strength in butts and loins.