GRAIN CALLS
Corn: 3 to 5 cents higher.
Soybeans: 11 to 13 cents higher.
Wheat: Winter wheat 8 to 11 cents higher; HRS 3 to 5 cents higher.
GENERAL COMMENTS: Corn, soybeans and wheat surged higher overnight, negating most of this week’s losses. Prices in each are near key technical resistance, marking this morning’s open as important. If prices close much higher than where they ended overnight, it would be a significant signal that interim lows are in place. Outside markets are mixed this morning as front-month crude oil futures are modestly higher and making fresh highs while the U.S. dollar index is up around 50 points on corrective strength.
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President Trump said in a speech in Iowa Tuesday afternoon that year-round E15 gasoline sales in the U.S. will happen. Trump said in his speech he is trusting House Speaker Mike Johnson and Senate Majority Leader John Thune to broker a deal in Congress. Lawmakers are “very close to getting it done,” said Trump. He said a bill supporting year-round E15 would come quickly. USDA Secretary Brooke Rollins said in a press release Tuesday evening that “President Trump is honoring his commitment to America’s farmers and energy producers in Iowa by announcing his support for the nationwide year-round sale of E-15. As Congress continues to work through the details, the President has been clear-- get a bill that allows nationwide E-15 to his desk, and he will sign it to unleash American homegrown row crops for biofuel use like never before.”
The Federal Reserve’s two-day Open Market Committee (FOMC) meeting that began Tuesday morning ends early this afternoon with a statement and press conference from Fed Chairman Jerome Powell. The FOMC is widely expected to keep U.S. interest rates unchanged. However, the FOMC statement and Powell’s remarks at his press conference will be parsed by the marketplace for any clues regarding the trajectory of monetary policy in the coming months, including Fed officials’ comments on inflation.
CORN: March corn futures made up most of this week’s losses overnight. Resistance stands at $4.31 1/4, the 20-day moving average, while additional resistance comes in at $4.35 1/4. Support stands at $4.28 on resurgent selling pressure.
SOYBEANS: March soybeans climbed to a one month high overnight. Gains stalled near 100-day moving average resistance at $10.77 1/2. Additional strength targets resistance at $10.82 1/2. Support lies at $10.75 then $10.72 1/4 on profit-taking.
WHEAT: March SRW futures surged higher overnight. Gains stopped just shy of $5.33 1/2 resistance, which marks the 100-day moving average and capped gains earlier this week. A close below that level would be a technical indication of higher prices to come. Support comes in at $5.25 then $5.21 1/4 on a turn lower.
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, though additional consolidation is possible. Cash trade has had a slow start to the week, with trade initiating at $234.00, roughly steady with a week ago. Wholesale beef saw modest pressure Tuesday as choice cutout fell 79 cents to $368.11 while select slid $1.93 to $365.19.
HOGS: Lean hogs are expected to open with a mostly firmer tone in a continuation of recent strength, though consolidation following a push to fresh highs is possible. The CME lean hog index is up another 42 cents to $84.43 as of Jan. 26. February futures are trading at a hefty premium to the index, which could limit the upside in nearby futures. Pork cutout slid $1.57 to $95.69 Tuesday, led by losses in loins, picnics and hams.