GRAIN CALLS
Corn: Steady to 2 cents higher.
Soybeans: 3 to 5 cents lower.
Wheat: Winter wheat steady to 2 cents lower; HRS steady to 2 cents higher.
GENERAL COMMENTS: Soybeans led weakness overnight while corn showed modest strength. Wheat was caught in the middle. Each saw an increase in buying pressure into the break. Front-month crude oil futures are modestly higher after sustaining heavy selling pressure on Wednesday. The U.S. dollar index is slightly lower but still trading near recent highs.
Government offices and the U.S. stock exchanges are closed today for a National Day of Mourning for President Jimmy Carter’s funeral. Grain and livestock markets will close at 12:15 p.m. CT. The bond market closes at 1:00 p.m. CT. Due to the government closure, weekly export sales data for the week ended Jan. 2 will be published on Friday.
The International Longshoremen’s Association (ILA) and the United States Maritime Alliance (USMX) announced a tentative agreement on a new six-year master contract for port workers along the East Coast and Gulf. The deal, reached verbally on Wednesday, must still be ratified by employers and the tens of thousands of members of the International Longshoremen’s Association. The agreement, finalized ahead of the Jan. 15 deadline, averts a potential strike that could have disrupted major U.S. ports and rattled the economy.
China will accelerate the breeding of new soybean and corn varieties and prioritize yield improvements for key grains and oil crops, as part of broad efforts to ensure food security, the agriculture ministry said. focus will be on five key crops - corn, rice, wheat, soybeans and rapeseed - and the better use and coordination of good land, high quality seeds, machinery and farming practices. The ministry aims to increase grain production by 50 MMT by 2030, which would be a 7% increase over the 2024 record. The ag ministry also called for coordinated funding to support the efforts to boost yields and help reduce China’s reliance on imports to ensure food security.
CORN: March corn futures posted modest gains overnight. Bulls are looking to hold uptrend line support at $4.53 1/2, with weakness below that mark targeting $4.50 support. Resistance comes in at $4.58 then the recent for-the-move high of $4.60 1/4.
SOYBEANS: March soybean futures favored the downside overnight. Tentative support lies at $9.85 1/2 while additional selling finds support at $9.80. Resistance comes in at the 10-day moving average at $9.94 1/4 then the psychological $10.00 mark on a bounce.
WHEAT: March SRW futures saw modest followthrough selling overnight. Support lies at $5.33 then the contract low of $5.27 1/2. Bulls are looking to overcome resistance at the 10-day moving average at $5.40 before tackling the psychological $5.50 mark.
LIVESTOCK CALLS
CATTLE: Choppy/lower.
HOGS: Choppy/higher.
CATTLE: Live cattle futures and feeders are expected to open with a mostly weaker tone in a continuation of Wednesday’s selling pressure, though discounts to the cash market could limit losses after the open. Cash cattle trade remains light to start the week, though early trade indicates another weekly increase is likely. Wholesale beef prices continue to climb, helping shore up packer margins, which remain deep in the red. Choice cutout rose another $2.82 to $328.61 Wednesday while Select cutout climbed $1.46 to $306.89.
HOGS: Lean hog futures are expected to open with a mostly firmer tone in a continuation of Wednesday’s strength, though a waning cash market could limit gains after the open. February futures marked a fresh for-the-move low early in yesterday’s session before rebounding on increased volume. The CME lean hog index is down another 54 cents to $81.05 as of Jan. 7, a fresh seasonal low. Meanwhile, pork cutout climbed $2.13 to $90.53 Wednesday, supported by gains in all cuts except for ribs.