GRAIN CALLS
Corn: 1 to 3 cents lower.
Soybeans: 1 to 3 cents lower.
Wheat: 1 to 3 cents lower.
GENERAL COMMENTS: Corn, soybeans and wheat each saw modest losses overnight. Part of that can be likely chalked up to heavy volatility in equities overnight, as stock futures are down heavily due to a threatened trade war reigniting with the EU. The U.S. dollar index is down nearly 1000 points this morning as well. Front-month crude oil futures are up 50 cents near $60.00.
USDA reported daily sales of 190,000 MT of soymeal for delivery to the Philippines for delivery during the 2025-26 marketing year.
Global stock markets early this week have slumped and gold hit a fresh record high as tensions between the U.S. and Europe flared over President Trump’s push to take control of Greenland. Trump’s visit to the World Economic Forum annual meeting in Davos this week is set to be dramatic after he shook the foundations of the EU and NATO alliance and pledged new tariffs related to his Greenland ambitions. Trump unleashed fresh social media threats against European allies and threatened tariffs on French wine. Trump took a swipe at French President Emmanuel Macron for rejecting an invitation to back his latest peace initiative and suggested the U.S. would impose duties on France’s agriculture sector. Trump is heading to the World Economic Forum in Davos, including threatening eight European countries with tariffs for opposing his Greenland demands. “The European Union and the United States have agreed to a trade deal last July,” European Commission President Ursula von der Leyen said in a speech in Davos today. “In politics as in business, a deal is a deal. And when friends shake hands, it must mean something.” Trump announced a 10% tariff on goods from eight European countries beginning Feb. 1, rising to 25% in June, unless he has a deal for the purchase of Greenland.
U.S. Treasury yields rose to the highest in more than four months as a major sell off in Japanese bonds spilled over into global debt markets. Longer maturities led losses, with the U.S. 30-year yield rising nine basis points to 4.93% and 10-year yields up seven basis points to 4.287%, the highest levels since Sept. 3. Traders and investors are reacting to a tumble in Japanese bond prices, as well as the rising tensions between Europe and the U.S. “Concern around Japan’s fiscal outlook sent yields on the nation’s 40-year debt rocketing above 4% in the Asian session, the most on record. That’s weighing on long-dated debt around the world, with 30-year bonds also underperforming in Europe,” said a Bloomberg report.
Bloomberg reports China has purchased roughly 12 million tons of U.S. soybeans in the last three months, clearing a closely watched trade hurdle and meeting a key pledge outlined by the Trump administration in November. “The world’s top consumer had been hovering close to the target for days and has now booked enough cargoes to meet it, according to traders familiar with the shipments. They asked not to be named as they are not authorized to speak with the media,” said Bloomberg.
CORN: March corn futures gapped lower overnight. Support stands at $4.20 on continued selling pressure, while resistance stands at Friday’s high of $4.27 1/4 on resurgent strength.
SOYBEANS: March soybeans hit 20-day moving average resistance overnight and turned lower. That level, currently at $10.62, stands as stiff resistance. Support comes in at $10.54 3/4 then $10.50 on persistent selling.
WHEAT: March SRW futures’ bulls are eyeing stiff resistance at $5.21 1/4, which capped early gains overnight, on strength. Support comes in at $5.13 3/4 then $5.10 1/2 on continued selling pressure.
LIVESTOCK CALLS
CATTLE: Choppy/higher.
HOGS: Higher.
CATTLE: Live cattle futures are expected to open with a mostly firmer tone amid persistent strength in cash fundamentals, though followthrough selling from last Friday could limit gains after the open. Last week’s cash cattle average boasted a 64-cent week-over-week gain, extending the recent push higher. This week, trade is likely to be pushed late in the week, which is normal given the cattle-on-feed report. Wholesale beef continues to push higher, as choice rose another $1.95 to $364.33 Monday, while select climbed 14 cents to $360.33.
HOGS: Lean hogs are expected to open higher in a continuation of recent strength, though profit-taking could limit gains after the open. Bulls have been encouraged by resurgent strength in the CME lean hog index, which is up another 50 cents to $81.00. After posting an apparent late seasonal low, the index is showing impressive strength. Pork cutout inched 57 cents higher to $94.20 Monday, led by strength in ribs.