GRAIN CALLS
Corn: 1 to 3 cents higher.
Soybeans: Steady to 2 cents higher.
Wheat: 1 cent lower to 1 cent higher.
GENERAL COMMENTS: Corn saw modest strength overnight while soybeans and wheat traded higher early before falling near unchanged going into the break. Little followthrough selling was seen in either market, a good sign and contrary to what has been seen the last couple days. Outside markets are mixed this morning as front-month crude oil futures are higher on corrective strength while the U.S. dollar index is up around 300 points.
USDA reported daily sales of 198,000 MT of soybeans for delivery to China, 177,055 MT of corn for delivery to Mexico and 125,000 MT of soybeans for delivery to unknown destinations. USDA also reported a cancellation of 132,000 MT of wheat for delivery to China.
China is selling large volumes of soybeans from its state reserves, as it steps up purchases from the U.S. to fulfill an agreement between the two countries in late October, Bloomberg reports. “Beijing often auctions soybeans to manage and rotate supplies from its substantial state reserves, but these are the first sales since it resumed buying from the U.S. following the trade truce with Washington. There have already been two auctions since last Thursday, with around 720,000 tons sold out of the more than 1 million tons on offer, according to official statements and Chinese consultancy Mysteel. Authorities will hold another auction for 550,000 tons on Friday,” said Bloomberg. Chinese state firms started buying U.S. soybeans in the days before the meeting and had taken a total of 2.5 million tons by the middle of November. There have been more purchases since then, but the U.S. government shutdown has delayed data on the latest total. Privately owned crushers, meanwhile, have largely steered clear of the beans, which still incur a 13% import tariff and remain unprofitable to process. China is expected to buy at least 12 million tons of U.S. soybeans by the end of February, according to the latest remarks from officials in Washington.
The U.S. is preparing a fresh round of sanctions on Russia’s energy sector to increase the pressure on Moscow should President Putin reject a peace agreement with Ukraine, according to people familiar with the matter and as reported by Bloomberg. The U.S. is considering options, such as targeting vessels in Russia’s so-called shadow fleet of tankers used to transport Moscow’s oil, as well as traders who facilitate the transactions, said the people who spoke on condition of anonymity to discuss private deliberations. The new measures could be unveiled as early as this week, some of the people said. Bloomberg said U.S. Treasury Secretary Bessent discussed the plans when he met a group of European ambassadors earlier this week. “President Trump is the President of Peace, and I reiterated that under his leadership, America will continue to prioritize ending the war in Ukraine,” Bessent wrote in a post on the social media platform X after the meeting
President Trump ordered a blockade of sanctioned oil tankers going into and leaving Venezuela, ratcheting up pressure on Venezuela as the U.S. builds up its military presence in the region. “Venezuela is completely surrounded by the largest armada ever assembled in the history of South America,” Trump wrote on social media Tuesday and as reported by Bloomberg. “It will only get bigger, and the shock to them will be like nothing they have ever seen before.” The move threatens to choke off the economic lifeblood of a country that was already under severe financial pressure. But it will have a less profound impact on global markets due to the diminished status of Venezuela’s oil industry.
CORN: March corn led strength overnight. Resistance stands at $4.40 on persistent strength, while support stands at $4.35 on a turn lower.
SOYBEANS: January soybeans struggled to maintain early overnight bullish momentum. Resistance stand at $10.68 3/4, the 200-day moving average. Bulls are looking to hold yesterday’s low of $10.59 1/2, which is backed by the psychological $10.50 mark.
WHEAT: March SRW futures consolidated near recent lows overnight. Prices hit a fresh contract low at $5.07 1/2 Tuesday, which stands as initial support. Additional support comes in at the psychological $5.00 mark. Bulls are seeking to overcome initial resistance at $5.15 on a bounce.
LIVESTOCK CALLS
CATTLE: Choppy/higher.
HOGS: Choppy/higher.
CATTLE: Cattle futures are expected to open higher in a continuation of recent strength, though technical resistance near $231.00 could limit gains after the open. Cattle have struggle to push to fresh highs this week, awaiting a fresh bullish catalyst. Cash cattle trade has been slow to start the week, which is typical in a Cattle-on-Feed report week. Wholesale beef ended Tuesday mixed with choice sliding 58 cents to $358.88 while select climbed $1.80 to $349.10.
HOGS: Lean hog futures are expected to open with a mostly firmer tone in a continuation of recent strength, though stiff technical resistance at $85.00 in February futures could limit gains after the open. That market has capped gains the past couple sessions, though a strong uptrend persists on the daily bar chart, which should help propel prices higher. The CME lean hog index is up another 31 cents to $83.30, extending the recent push higher. Pork cutout fell 33 cents to $98.56 Tuesday, led by losses in bellies, picnics and loins.