GRAIN CALLS
Corn: Steady to 2 cents higher.
Soybeans: 1 to 3 cents higher.
Wheat: Steady to 2 cents higher.
GENERAL COMMENTS: Corn, soybeans and wheat each traded in a tight range overnight, pausing from recent gains. Some consolidation is to be expected given recent moves to the upside. Outside markets are quiet this morning ahead of the Federal Reserve’s interest rate decision this afternoon. Front-month crude oil futures are modestly lower while the U.S. dollar index is around 150 points higher.
Trump-Xi summit progress bodes well for Boeing, U.S. farmers. That’s the headline of an exclusive South China Morning Post report today. The story says President Trump “will likely only agree to a China visit if he can announce multibillion-dollar orders, probably for Boeing aircraft and U.S. soybeans.” The report said negotiations between the U.S. and China over a possible state visit by President Trump to China are in their final stage, with large-scale purchases of U.S. products — particularly soybeans — emerging as key element, according to the Post. “There are a few small loose ends. But the major blocks are already resolved. Things are taking shape,” one source told the Post, describing the talks as at a “very advanced stage.”
China’s internet watchdog has instructed companies including Alibaba and ByteDance to terminate orders for Nvidia Corp.’s RTX Pro 6000D computer chip, the Financial Times reported. The Cyberspace Administration of China told companies this week to stop testing the chip and cancel existing orders, according to the FT. Before that edict, several Chinese companies had indicated they would order tens of thousands of the chips, which Nvidia introduced to get around restrictions on the shipment of advanced AI chips to China, the FT said. This news comes as the U.S. and China both said they had made progress in trade talks held in Madrid, Spain earlier this week.
The U.S., Canada and Mexico are set to formally begin consultations ahead of the review of their regional USMCA trade accord next year, the U.S. and Mexico announced Tuesday. The consultation process will begin today. Mexican Economy Minister Marcelo Ebrard said an evaluation of the trade pact’s results over the past five years will take place between now and the end of the year to prepare for negotiations over a possible extension of the agreement in 2026. The Office of the U.S. Trade Representative, which estimates that the USMCA covers nearly $2 trillion in US goods and services within the region, made a similar announcement in an official notice seeking public comment on the matter. Canadian Prime Minister Mark Carney last month said his government would also hold industry consultations on the trade agreement this fall, though Canada’s process has not yet formally begun.
CORN: December corn continue to trend higher on the daily bar chart. Resistance stands at $4.35 3/4, the 200-day moving average, on continued strength. Support comes in at $4.25 1/4 on a reversal lower.
SOYBEANS: November soybeans continue to struggle garnering much momentum above $10.50. Additional strength would find resistance at $10.60. Support comes in at $10.41 3/4 on a push lower.
WHEAT: December SRW wheat has stalled at 40-day moving average resistance at $5.34 1/4. Strength above that mark has bulls eyeing resistance at $5.40. Support stands at $5.29 1/4 on a turn lower.
LIVESTOCK CALLS
CATTLE: Choppy/lower.
HOGS: Choppy/lower.
CATTLE: Cattle futures are expected to open with a mostly firmer tone as technical levels continue to provide support. The downside was largely limited by 20-day moving average support on Tuesday, which is expected to continue to provide support today. Fading cash fundamentals could continue to limit strength, as wholesale beef continues to fall. Choice cutout fell another $5.91 to $392.62 Tuesday while Select plunged $5.63 to $373.17.
HOGS: Lean hog futures are expected to open with a mostly weaker tone in a continuation of recent selling pressure. October lean hogs hit a fresh contract high Tuesday before reversing lower. The CME lean hog index looks to continue its seasonal downtrend, as the index is down 14 cents to $106.00 as of Sept. 15. Pork cutout saw heavy pressure Tuesday, falling $1.79 to $112.28 as all cuts posted losses on the day, though movement increased to 372.8 loads, indicating robust demand at lower prices.