GRAIN CALLS
Corn: Steady to 2 cents lower.
Soybeans: Steady to 2 cents lower.
Wheat: Steady to 2 cents higher.
GENERAL COMMENTS: Corn and soybeans saw modest selling pressure overnight while wheat saw relative strength. Tuesday’s USDA reports did little to spur prices out of the recent ranges. Outside markets are mixed this morning as front-month crude oil futures are higher while the U.S. dollar index is up around 110 points. S&P futures are knocking on the door of 7000 and are near record highs.
The White House has revised its fact sheet on the U.S.-India trade agreement to adjust language around agricultural goods, adding to confusion about the deal already raised by India farmer groups, Bloomberg reported. In a revised statement, the U.S. removed a reference to pulses — a staple food in India that includes lentils and chickpeas — and changed some phrasing around India’s offer to buy more U.S. goods. An earlier version on Monday released by the White House said India would “eliminate or reduce tariffs” on a wide range of U.S. food and agricultural products, including certain pulses. India is the world’s largest consumer of pulses, accounting for more than a quarter of global demand, according to the United Nations. Farmer groups in the country — a major voting bloc — had already raised concerns about a lack of clarity on the deal and concessions offered to U.S. farmers. Soybean and bean oil futures saw selling pressure in the overnight trade.
The Federal Aviation Administration late Tuesday halted all flights to and from El Paso International Airport for 10 days, citing unspecified “special security reasons,” The New York Times reported. In a move that appeared to surprise local officials and airlines, the restriction went into effect at 11:30 p.m. local time on Tuesday and will remain until Feb. 20 for the airspace over El Paso and the neighboring community Santa Teresa, New Mexico, the F.A.A. notices said. They did not detail the security reasons that prompted them. The airport issued a travel advisory on social media saying that all flights to and from the airport had been grounded, including commercial, cargo and general aviation. It told travelers to contact their airlines for the latest status of their flights. The FAA did not immediately respond to a request for comment, said the Times. The airport in El Paso, the 23rd-most populous city in the nation according to the 2020 census, serves a vast swath of west Texas and eastern New Mexico.
China’s annual inflation rate eased sharply to 0.2% in January, month-on-month, marking the lowest level since October and coming in below market expectations of a 0.4% rise. Food prices declined for the first time in three months, while non-food inflation also moderated. Meanwhile, producer prices declined 1.4%, year-on-year, the mildest drop in 18 months.
CORN: March corn futures are threatening a technical breakdown on the daily bar chart. Support comes in at $4.25 on a push lower, while bulls are looking to overcome resistance at $4.30, the 20-day moving average, on resurgent strength.
SOYBEANS: March soybeans saw some profit-taking overnight. Bulls are looking to overcome resistance at $11.25 then last week’s high of $11.37 3/4 on persistent strength. Support comes in at $11.15 1/4 then the psychological $11.00 mark on a turn lower.
WHEAT: March SRW futures continue to trade in a tight range. Resistance stands at $5.33 on persistent strength, while bulls are looking to hold prices above support at $5.26 1/4.
LIVESTOCK CALLS
CATTLE: Choppy/higher.
HOGS: Choppy/lower.
CATTLE: Live cattle futures are expected to open with a mostly firmer tone in a continuation of recent strength. Prices have bene supported by 20-day moving average support following last Thursday’s breakdown. April futures closed right on that mark Tuesday and a break much lower could spur additional technical selling. Cash cattle trade has had a slow start to the week with little trade taking place. Choice cutout slid another 21 cents to $367.55 Tuesday.
HOGS: Lean hogs are expected to open with a mostly weaker tone in a continuation of recent selling pressure. While the front-end of the complex has underwent selling pressure amid daily losses in the CME lean hog index, the back-end has held strong and prices continue to trade near contract highs. The CME lean hog index is down another 15 cents to $86.32 as of Feb. 9. Pork cutout slid 37 cents to $95.46 Tuesday, led by losses in loins.