GRAIN CALLS
Corn: 1 to 3 cents higher.
Soybeans: 1 cent lower to 1 cent higher.
Wheat: Winter wheat 6 to 8 cents higher; HRS 2 to 4 cents higher.
GENERAL COMMENTS: Wheat led strength overnight with corn following to the upside. Wheat and beans have seen favorable price actions since Monday’s drop, but corn continues to languish near recent lows. Without participation from “king corn,” it will be difficult for the other two to work higher. Front-month crude oil futures are modestly higher this morning while the U.S. dollar index is around 10 points lower.
USDA reported daily sales of 298,000 MT of corn for delivery to unknown destinations and 120,000 MT of corn for delivery to Japan during the 2025-26 marketing year.
The U.S. dollar index on Thursday hit a six-week high and is holding around steady in early trading today. The USDX is poised for a third consecutive weekly gain as strong U.S. economic data has tempered expectations for additional Federal Reserve interest rate cuts. Weekly jobless claims came in well below forecasts, signaling a resilient labor market, while some manufacturing surveys also exceeded expectations. Several Fed officials also highlighted signs of labor market stability and cautioned against potential inflationary risks.
Federal Reserve Bank of Kansas City President Jeff Schmid said U.S. interest rates should stay at a level where they continue to put some pressure on the economy so that inflation can cool further. Schmid on Thursday said he does not think further cuts in interest rates will do much to patch over any cracks in the labor market, which he believes are driven by structural factors. Schmid also spoke about the Fed’s independence and its federalized structure, saying that the decentralized system allows for differing views on the correct course of monetary policy, which he considers a strength.
The U.S. and Taiwan agreed to a trade pact that would lower tariffs on goods imported from Taiwan to 15% and see Taiwanese semiconductor companies increase financing for American operations by $500 billion. Taiwan’s technology industry would commit to making at least $250 billion in direct investments to expand advanced semiconductor, energy and artificial intelligence operations in the U.S. Taiwan also agreed to provide an additional $250 billion in credit guarantees for further investment in the American semiconductor supply chain.
CORN: March corn futures continue to trade in a tight bear-flag on the daily bar chart. Bulls are eyeing a close above $4.26 to negate that technical pattern, with that area standing as resistance. Support comes in at $4.20 on a push lower.
SOYBEANS: March soybeans found stiff resistance at the 10-day moving average at $10.53 1/2 Thursday. Strength above that mark eyes resistance at $10.62. Support stands at $10.45 on a turn lower.
WHEAT: March SRW futures continue to struggle garnering much bullish momentum above resistance at $5.16. Above that mark, bulls are eyeing resistance at $5.21 1/2. Support stems from $5.10 1/2 on a turn lower.
LIVESTOCK CALLS
CATTLE: Higher.
HOGS: Choppy/higher.
CATTLE: Live cattle futures are expected to open higher in a continuation of recent strength. Cash trade remains light so far this week, but another week-over-week gain looks likely. Bulls continue to hold the advantage on the daily bar chart, likely to breed followthrough strength today. Choice beef rose $2.24 to $360.77 Thursday while select climbed $2.06 to $359.71 indicating demand for beef remains quite robust.
HOGS: Lean hogs are expected to open with a mostly firmer tone in a continuation of recent strength, though some profit-taking following recent explosive gains could limit the upside after the open. Modest strength in the CME lean hog index likely encouraged traders Thursday, as the index is up 11 cents to $80.50 as of Jan. 14, indicating a seasonal low could be near at hand. Pork cutout rose $2.31 to $93.60 Thursday, led by strength in loins and bellies.