GRAIN CALLS
Corn: 1 to 3 cents lower.
Soybeans: 3 to 5 cents lower.
Wheat: 3 to 5 cents lower.
GENERAL COMMENTS: Corn, soybeans and wheat trended lower overnight following strength at the overnight open. Volume was light across the complex following last week’s shortened trading schedule. Equity futures favored the downside overnight while front-month crude oil futures saw relative strength. The U.S. dollar index is currently around 350 points lower.
World Weather Inc. today reports a follow-up weather disturbance will move across the central and northern Great Plains and Midwest today through Wednesday morning, producing another dusting to three inches of snow in many areas. Some greater snowfall of 3 to 6 inches may impact the eastern Midwest, northern half of the Appalachian Mountains and some coastal areas along the middle and northern Atlantic Coast. Lake-effect snow will continue through the coming week, resulting in more heavy snowfall immediately downwind from the Great Lakes. “Livestock stress was quite significant across the northern half of the Great Plains and throughout the Midwest as cold rain and heavy snow was accompanied by falling temperatures. Animal stress was quite high in unprotected areas of the Midwest after weeks of unusual warmth and below-normal precipitation,” said the forecaster.
President Trump on Sunday said he has decided on his pick for the next Federal Reserve chair and expects his nominee to deliver interest-rate cuts. Trump’s chief economic adviser, Kevin Hassett, is seen as the likely choice to succeed current Fed chief Jerome Powell, according to people familiar with the matter and as reported by Bloomberg. The person Trump picks will require U.S. Senate confirmation as chair and likely to a 14-year Fed governor term that begins in February if the selection is an outsider. Powell’s term ends in May.
U.S. and Ukrainian negotiators over the weekend in Florida had productive discussions about a framework for a peace deal, but there was no final breakthrough. The two sides discussed potential parameters for a ceasefire and the status of the Russian-occupied Zaporizhzhia nuclear power plant. “The next steps will be decided in follow-up meetings, depending on the outcome of U.S. special envoy Steve Witkoff’s talks in Moscow and Russian President Vladimir Putin’s response to the proposals, said a Bloomberg report. “There’s more work to be done,” Secretary of State Marco Rubio told reporters in Florida after meeting for at least four hours with Ukrainian officials led by National Security and Defense Council Secretary Rustem Umerov.
CORN: March corn futures encountered stiff selling pressure at $4.46 3/4, the 200-day moving average, overnight. That remains a key technical level this week. Bulls are eyeing support at $4.43 1/2 to limit selling pressure.
SOYBEANS: January soybeans struggled to maintain last night’s higher open. Bulls are eyeing resistance at $11.45 on resurgent strength, while support comes in at $11.31 1/4 on persistent selling pressure.
WHEAT: March SRW wheat trended lower overnight. Bulls are looking to keep prices above last week’s low at $5.31 3/4. Resistance stands at the 10-day moving average at $5.41 1/4 on resurgent strength.
LIVESTOCK CALLS
CATTLE: Chopp/lower.
HOGS: Choppy/higher.
CATTLE: Live cattle futures are expected to open with a mostly weaker tone as technical selling is likely to entice bears. February live cattle futures nearly tested the 20-day moving average in Friday’s abbreviated session, which has acted as stiff resistance since the October top. A close above that level, at $216.75, would be technically significant. Cash cattle trade looks to post another week-over-week drop, while wholesale beef continues to trend lower as well, both of which could weigh on futures.
HOGS: Lean hog futures are expected to open with a mostly firmer tone as technical support could underpin prices. Bulls struggled sustaining Friday’s gap open higher as volume was light, but bulls held prices above the 20-day moving average at $80.65, which will remain key support. A waning cash market could continue to weigh on prices as well, as the CME lean hog index is down another 54 cents to $82.27, though traders are likely beginning to think of where a seasonal low could end up, as the index typically bottoms around the new year.