GRAIN CALLS
Corn: 1 to 3 cents higher.
Soybeans: 5 to 7 cents higher.
Wheat: Winter wheat 5 to 7 cents higher; HRS steady to 2 cents higher.
GENERAL COMMENTS: Corn, soybeans and wheat each favored the upside in overnight trade, rebounding from Wednesday losses. Corn saw just modest gains, garnering little support from reported robust export sales during the shutdown, as USDA reported net sales of 2.260 MMT of corn sales for the week ended Oct. 2. Soybean sales were lackluster at 919,400 MT, but wheat sales were an impressive 887,900 MT. Equity futures surged higher overnight while the U.S. dollar index and front-month crude oil futures did not stray much from unchanged.
USDA reported export sales of 462,000 MT of soybeans and 132,000 MT of white wheat for delivery to China during the 2025-26 marketing year. That brings China up to a potential 2.42 MMT out of the proposed 12 MMT goal of sales by the end of the year.
Non-farm payrolls in the U.S. rose by 119k jobs in September, according to the Bureau of Labor Statistics. That is up from a revised 4k decline in August and was well above forecasts of 50k jobs. The biggest job rise in five months was led by jobs in healthcare and food services. Meanwhile, the unemployment rate increased 0.1% to 4.4% in September, exceeding market expectation and the highest since October 2021. A portion of that increase is due to an increase in the labor participation rate.
Nationwide grain merchandiser and processor Hansen-Mueller Co. this week filed for Chapter 11 bankruptcy. The firm, based in Omaha, has nine elevators across five states. It also operates port terminals in Minnesota, Texas, Wisconsin and Ohio. Ag Web reported that in October more than three dozen Nebraska farmers were owed a total of $2 million. At that time, Hansen-Mueller’s grain dealer license was suspended by the Nebraska Public Service Commission. After paying farmers $2.1 million, the Commission reinstated the company’s license on Nov. 4 and did not issue any civil penalties. The bankruptcy filing came two weeks later. “After careful consideration of all available strategic alternatives, the Board of Directors determined that a Court-supervised process is the most effective and efficient way to achieve an orderly sale of our assets,” said Josh Hansen, Chief Executive Officer of Hansen-Mueller Co. in the company press release. “We believe this path will maximize the value of the company’s assets for the benefit of our creditors, employees, and all stakeholders.”
Global stock markets and U.S. stock indexes posted solid gains overnight, following Nvidia Corp. on Wednesday afternoon delivering a surprisingly strong revenue forecast. The company also pushed back on the idea that the artificial intelligence industry is in a bubble, easing concerns that had spread across the tech sector. Nvidia sales will be about $65 billion in the January quarter, the chipmaker said in a statement on Wednesday. Analysts had estimated $62 billion on average, according to data compiled by Bloomberg.
CORN: December corn saw modest strength overnight. Resistance stands at $4.32 1/2, the 200-day moving average. Support stands at $4.30 then $4.27 1/2 on persistent selling pressure.
SOYBEANS: January soybeans bounced off technical support overnight. Bulls are eyeing resistance at $11.50 on continued strength. Support stands at the 10-day moving average at $11.35 1/4, which has capped the downside since mid-October.
WHEAT: December SRW bounced overnight. Resistance stands at $5.46 1/2 then the psychological $5.50 mark on persistent strength. Support stands at $5.38 then $5.35 3/4, the 100-day moving average, which capped the downside yesterday.
LIVESTOCK CALLS
CATTLE: Choppy/higher.
HOGS: Choppy/lower.
CATTLE: Cattle futures are expected to open with a mostly firmer tone on corrective buying. Prices saw sustained selling pressure on Wednesday but did see a modest bounce near recent lows, which could spillover into today’s session. Cash cattle trade remains slow so far this week, averaging $220.29 thus far. Wholesale beef saw modest losses Wednesday as choice cutout slid 72 cents to $371.23 while select sunk $1.40 to $353.55.
HOGS: Lean hog futures are expected to open with a mostly weaker tone as technical selling is likely to persist. Bulls failed to overcome resistance at the 10-day moving average Wednesday, which continues to serve up resistance at $79.40. The CME lean hog index is down another 40 cents to $86.27 as of Nov. 18. Pork cutout slid $2.25 to $93.14 yesterday, marking a fresh for-the-move low, as losses in bellies led cutout lower.