GRAIN CALLS
Corn: 5 to 7 cents higher.
Soybeans: 10 to 12 cents higher.
Wheat: 6 to 8 cents higher.
GENERAL COMMENTS: Corn, soybeans and wheat each surged overnight and climbed nearer the upper range of the recent highs. Bulls are looking to build on that strength and negate the ongoing sideways ranges in each market. Front-month crude oil futures are solidly lower this morning amid talks of peace, while the U.S. dollar index is up around 45 points.
China bought more U.S. soybeans just days ahead of a key leaders’ summit, a sign of further progress toward Beijing’s pledge to boost purchases of American farm goods, Bloomberg reported overnight. “State-owned firms booked at least four cargoes — or about 260,000 tons — of U.S. soybeans late last week, said traders with knowledge of the deals. The supplies are mainly for loading in December and January from the Pacific Northwest and the U.S. Gulf, they said, asking not to be named as they weren’t authorized to talk to the media.” Earlier this month, China passed the halfway mark of a pledge to buy at least 25 million tons of U.S. soybeans annually through 2028, part of a broader trade truce struck by the two countries’ during a summit in South Korea last October. Beijing has also promised to buy at least $17 billion of U.S. farm products annually on top of the soybean commitment, although significant purchases of other major crops, including wheat and corn, have yet to materialize.
U.S. and Chinese officials have begun talks in New York to lay the groundwork for a high-profile summit between Presidents Donald Trump and Xi Jinping. The negotiators are expected to discuss issues spanning trade and investment, artificial intelligence and the Iran war. A trade truce that saw both sides lower tariffs and export restrictions is set to expire in November and is high on the agenda for the talks. The negotiators are led by U.S. Treasury Secretary Scott Bessent and China’s Vice Premier He Lifeng. Bessent said discussions on Sunday had been “very successful,” while Li Chenggang, the top Chinese trade negotiator, said they had been conducted in a good atmosphere. An announcement of new U.S. tariffs over allegations of trading partners’ excess manufacturing capacity has been delayed until after the meeting, according to people familiar with the matter and as reported by Bloomberg. “The U.S. and China have been working to reduce levies on American energy and agricultural products, Bloomberg reported earlier, part of a broader initiative to ease barriers on $30 billion worth of products from each side under the Board of Trade mechanism launched earlier this year,” said the report.
USDA’s monthly Cattle on Feed Report released after Friday’s close showed a 1% rise from a year ago in the number of cattle on feed, while placements during August slumped 9% to the lowest reading for the month on record going back to 1996. August marketings were down 3% from a year ago. Read: Cattle on Feed inventory up just slightly from year-ago levels
CORN: December corn found strong support at the 20-day moving average at $5.26, which remains key support. Bulls are looking to topple resistance at $5.40 on continued strength.
SOYBEANS: November soybeans reversed back above the 10-day moving average, which remains a key pivot today at $13.09 1/2. Support comes in at $13.00 on a push lower, while bulls are looking to topple resistance at $13.25 on continued strength.
WHEAT: December SRW wheat are trading in the upper end of the ongoing sideways range. Bulls are looking to break prices above resistance at $7.28 1/4. Support comes in at $7.11 3/4 on a reversal lower.
LIVESTOCK CALLS
CATTLE: Higher.
HOGS: Lower.
CATTLE: Live and feeder cattle futures are expected to open higher after Friday’s bullish Cattle on Feed report. While the headline figure was higher, placements were the lowest since the series began in 1996. That indicates cattle continue to spend more time on feed, which could be partially attributed to the lower cash prices over the past several weeks. Cash cattle trade is likely to show a modest week-over-week decline. Choice beef slid 21 cents to $371.94 Friday.
HOGS: Lean hog futures are expected to open with a weaker tone in a continuation of Friday’s selling pressure. Friday’s move lower indicated a technical breakdown on the daily bar chart. The CME lean hog index slid another $1.00 to $84.02 as of Sept. 17, extending the seasonal decline. Pork cutout fell 56 cents to $86.98 Friday, led by losses in butts and hams.