GRAIN CALLS
Corn: 1 cent lower to 1 cent higher.
Soybeans: 1 cent lower to 1 cent higher.
Wheat: 2 to 4 cents higher.
GENERAL COMMENTS: Corn and soybeans had an indecisive tone in overnight trade, seeing action on either side of unchanged. Wheat saw relative strength. The ongoing government shutdown has done little to deter stock market bulls as prices continue to trade near all-time highs. Front-month crude oil futures continue to fall under pressure and are modestly lower while the U.S. dollar index is trading near unchanged.
The U.S. government shutdown is into its second day and the Trump administration is raising the stakes by halting $18 billion in infrastructure funding and signaling a willingness to fire thousands of federal workers. “The administration’s moves have suggested a hardening of positions, which could require one side to make bigger concessions to get the federal government back to work, and some Republicans have expressed concerns that the strategy could backfire,” said a Bloomberg report. The shutdown could have significant economic impacts, with the Congressional Budget Office estimating a cost of $400 million per day in lost compensation, and some economists warning that mass firings could sap corporate confidence and reduce capital investments, said Bloomberg.
The United States Department of Agriculture confirmed it will halt all new data and reports during the U.S. government shutdown. “All reports and data releases will cease,” a spokesperson told the Wall Street Journal. According to the agency’s contingency plan, most USDA employees will be furloughed, with limited exceptions. The government shutdown disrupts the release of key USDA publications, including the weekly export sales report due today and the October supply and demand (WASDE) report scheduled for next week.
Global agriculture technology giant Corteva Wednesday announced plans to separate into two independent, publicly traded entities: “new” Corteva, which will continue to sell crop protection products – herbicides, fungicides, insecticides and biologicals – and SpinCo, which will focus on the seed genetics business. SpinCo will include Pioneer, the company’s legacy seed brand established in 1926, as well as Brevant and regional seed brands, including Dairyland Seed. Upon separation of the companies, Greg Page, current Corteva chairman will lead new Corteva, while Chuck Magro, current Corteva CEO, will become CEO of SpinCo.
CORN: December corn saw action on either side of unchanged overnight. Resistance stands at $4.19 1/4 on a push higher while bulls are seeking to hold prices above support at $4.15 1/2 on a reversal lower.
SOYBEANS: November soybeans struggled to push above 10-day moving average resistance at $10.14 3/4 overnight. Support stands at $10.00 on a reversal lower.
WHEAT: December SRW wheat saw modest continued profit-taking overnight. Bulls are looking to overcome resistance at $5.16 on persistent strength. Support comes in at $5.05 on a push lower.
LIVESTOCK CALLS
CATTLE: Choppy/higher.
HOGS: Choppy/higher.
CATTLE: Cattle futures are expected to open higher as technical support continues to underpin prices. Nearby live cattle futures have toggled between technical support and resistance over the past several days. Cash cattle trade has had a slow start to the week with prices averaging modestly higher. Wholesale beef continues to fall under pressure, with Choice cutout down another $2.56 to $368.47 and Select down 36 cents to $346.89.
HOGS: Lean hog futures are expected to open with a mostly firmer tone amid technical buying. Prices have faced heavy selling over the past several days with December futures encountering technical support at the 40-day moving average. The CME lean hog index is down 47 cents to $104.26 as of Sept. 30, accelerating the recent decline. Pork cutout slid $1.99 to $108.35 Wednesday, led by losses in bellies.