GRAIN CALLS
Corn: 3 to 5 cents lower.
Soybeans: 6 to 8 cents lower.
Wheat: 10 to 12 cents lower.
GENERAL COMMENTS: Grains favored the downside overnight, giving up most of the gains seen on Tuesday following USDA reports. Soybeans continue to trade in a tight range, continuing that trend from the past few weeks. Outside markets are mixed this morning as front-month crude oil futures are modestly lower while the U.S. dollar index is over 500 points lower.
Latest on the war in Iran:
--Trump foresees U.S. exiting Iran war in two to three weeks, to address nation tonight
--Iran launched attacks on Israel, Bahrain, Kuwait, an oil tanker off Qatar and the UAE
--Trump threatens to pull U.S. from NATO in comments to The Telegraph
--U.K. will host a multi-nation meeting on reopening the Strait of Hormuz
--WTI crude oil slips to near $100 on optimism over Iran war resolution
--Asian, European stocks rally most in a year on hopes Iran war may end
-- Third U.S. aircraft carrier heads to Mideast as Iran war continues
“Indonesia’s abrupt pivot to expand its biodiesel mandate is the latest sign of how the war in Iran is reshaping energy policy, tightening global vegetable oil supplies as more gets funneled into fuel,” according to a Bloomberg report. “The world’s top palm oil producer will implement its B50 program — an ambitious target to boost the level of biodiesel blended in its fuel to 50% — starting from July 1, Airlangga Hartarto, coordinating minister for economic affairs announced late Tuesday. The move is part of efforts to mitigate energy supply disruptions wrought by the conflict, with Airlangga saying it could reduce fossil fuel consumption by 4 million kiloliters annually. That’s set to shrink the amount of palm oil the country has available to export and comes as other nations are ramping up biofuel mandates of their own,” said the report.
The Commodity Futures Trading Commission is monitoring trading in the crude oil futures market for unusual activity, its enforcement chief said Tuesday. “I can’t comment on what we’re investigating or not investigating,” CFTC Enforcement Director David Miller said on the sidelines of an event in New York when asked about the trading and as reported by Bloomberg. “All I’ll just say is we’re watching.” Miller declined to comment further. Trading in Nymex crude oil futures spiked lower in the minutes before a March 23 social media post from President Donald Trump about postponing strikes on Iran, Bloomberg reported last week.
CORN: May corn futures continue to fall under pressure. Key support stands at $4.50 on persistent selling. Bulls are eyeing resistance at $4.57 3/4 on a turn higher.
SOYBEANS: May soybeans continue to trade sideways despite Tuesday’s reports. Resistance stands at $11.67 3/4 then $11.75 on a bounce. Key support comes in at $11.57, the 40-day moving average, on persistent selling.
WHEAT: May SRW futures led weakness overnight. Support at the 10-day moving average at $6.03 stifled losses overnight, which is reinforced by the psychological $6.00 mark. Resistance comes in at $6.10 then $6.20 on a bounce.
LIVESTOCK CALLS
CATTLE: Choppy/higher.
HOGS: Choppy/lower.
CATTLE: Live cattle futures are expected to open with a mostly firmer tone in a continuation of recent strength, though steep premiums to the cash market could limit gains after the open. Bulls are in control of the technical advantage and June futures are closing in on contract highs. Cash trade remains slow so far this week with no reported trade to USDA. Choice beef continues to bounce, rising another $1.39 to $395.49.
HOGS: Lean hogs are expected to open with a mostly weaker tone in a continuation of recent selling pressure. A weaker cash market continues to undercut futures. The CME lean hog index is down another 28 cents to $90.48 as of March 30. Until seasonal strength returns to the cash market, futures are going to struggle building much bullish momentum. Pork cutout fell $1.32 to $96.25 Tuesday, led by losses in loins.