GRAIN CALLS
Corn: 1 cent lower to 1 cent higher.
Soybeans: 6 to 8 cents lower.
Wheat: 4 to 6 cents lower.
GENERAL COMMENTS: Corn, soybeans and wheat each saw modest selling pressure overnight, negating much of Thursday’s strength in the latter two. A softer-than-expected CPI report led risk assets higher this morning. Gold and silver rebounded strongly from Thursday’s losses as well. Front-month crude oil futures are modestly higher while the dollar index is near unchanged.
The consumer price index cooled in January, slowing to 0.2% on a monthly basis, below 0.3% in December. On an annual basis, CPI cooled to 2.4%, the lowest since May, down from 2.7% the past couple months. Inflation eased in energy while it accelerated in food and housing. Core CPI, which removes food and energy costs, increased by 0.3% in January, rising from 0.2% in December. On an annual basis, core CPI eased to 2.5%, its lowest reading since March 2021.
Gold, silver, copper, platinum and palladium futures markets late Thursday morning plunged as concerns about artificial intelligence spurred a sell off across many markets, with algorithmic traders appearing to amplify the precious metal’s sudden drop. “Stock indexes also tumbled as investors bet that artificial intelligence would dent some companies’ future earnings, triggering a rout across risk assets. The dramatic decline in gold — which didn’t have a clear catalyst — was likely intensified by selling from commodity trading advisers using computer models to bet on price moves,” said a Bloomberg report. Margin calls also likely added to the sell off, with some investors forced to exit positions in commodities including metals to provide liquidity, said Nicky Shiels, head of metals strategy at MKS PAMP SA. “We are all clueless. It all happened so quickly and feels like a ‘risk-out’ move,” Shiels said. In times of extreme market stress, haven assets like gold will also be sold by investors in dire need of liquidity, she added and as reported by Bloomberg.
The Trump administration is working to narrow its broad tariffs on steel and aluminum products that companies find difficult to calculate and the European Union wants reined in as part of its pending trade deal with the U.S., a person familiar with the matter said and as reported by Bloomberg. The U.S. Trade Representative’s Office is scrambling to resolve complications spawned last year by the Commerce Department’s efforts to rush out President Trump’s tariff agenda, the person said. The White House has communicated to companies that adjustments are in the works, but details and timing remain unclear, the person said. The rollback plans were reported earlier by the Financial Times. Aluminum fell in London following the report.
CORN: March corn futures saw modest selling pressure overnight. Support stands at $4.28 1/2 then $4.27 on persistent selling. Meanwhile, bulls are eyeing resistance at $4.32 then $4.35 on a push higher.
SOYBEANS: March soybeans gave up most of Thursday’s gain overnight. Support comes in at the psychological $11.25 mark then $11.10 3/4, the 10-day moving average, on persistent selling. Resistance stands at $11.40 then yesterday’s high of $11.41 1/2.
WHEAT: March SRW futures found staunch resistance at $5.50. Bulls are looking to overcome that mark on resurgent strength, while support comes in at $5.40 then $5.36 3/4 on persistent profit-taking.
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 resistance at recent highs could limit the upside after the open. Cash cattle trade has had a light start to the week though early indications point to another week-over-week gain. Choice cutout meanwhile continues to fall under pressure, falling another $1.08 to $364.84 Thursday.
HOGS: Lean hogs are expected to open with a mostly firmer tone on corrective buying. Futures have fallen under heavy selling the past several days. Meanwhile, strength has returned to the CEM lean hog index, which is up another 37 cents to $86.89 as of Feb. 11. That resurgent strength could underpin futures. Pork cutout rose $1.88 to $95.65 Thursday as all cuts posted gains on the day.