GRAIN CALLS
Corn: 1 cent lower to 1 cent higher.
Soybeans: Steady to 2 cents higher.
Wheat: 2 to 4 cents higher.
GENERAL COMMENTS: Corn and soybeans saw action on either side of unchanged overnight, facing a modest increase in selling pressure going into the break. Wheat saw relative strength, building on recent gains. Outside markets are supportive this morning as front-month crude oil futures are modestly higher on profit-taking while the U.S. dollar index is down around 125 points.
The National Weather Service today reports that east of the Rocky Mountains an existing upper ridge will promote above average to well above average temperatures for most areas. Record high afternoon temperatures and record high morning low temperatures are likely to stretch from the Northern Plains into the upper Mississippi Valley and Great Lakes over the next two days. Across these areas, high temperatures Friday and Saturday are expected to be in the mid-80s to lower 90s, ranging from 15 to 30 degrees above average. This late-season heat wave will produce moderate to major heat risk across parts of the Dakotas, Minnesota, Iowa, western Wisconsin, and into northern Illinois. Relief from this heat will begin late this weekend as a strong front pushes eastward across the north-central U.S.
Democrats are standing firm in the face of President Trump’s threats to fire thousands of federal workers, with the two sides locked in a standoff that raises the prospects of lengthy furloughs and a prolonged disruption in U.S. government services. “The leaders of both parties are sticking to their talking points as the first shutdown in nearly seven years enters its third day. Lower-level negotiations have failed to strike a deal and another Senate vote Friday on a House-passed temporary spending bill is expected to fail,” said a Bloomberg report. The Senate is unlikely to hold votes over the weekend, almost certainly pushing the shutdown into next week as the two parties blame the other for the failure to reach an accord.
U.S. Treasury Secretary Scott Bessent said Thursday the federal government will support American farmers amid China’s refusal to buy U.S. soybeans and that an announcement would be made next Tuesday. “American farmers overwhelmingly voted for President Donald Trump in the 2024 presidential election,” Bessent said, adding he met with Trump and Ag Secretary Rollins in the Oval Office Wednesday to discuss a strategy to help U.S. farmers, especially soybean farmers. The Wall Street Journal reported the administration is considering providing $10 billion or more in aid to U.S. farmers as the agriculture sector has warned of the economic fallout from U.S. tariffs.
CORN: December corn pushed higher early in the overnight session but have since turned lower. Support stands at $4.20 while bulls are seeking to topple resistance at $4.23, then the psychological $4.25 mark.
SOYBEANS: November soybeans are encountering stiff resistance at $10.25, which coincides with the 40-day moving average. Support stands at $10.18 1/4 on profit-taking.
WHEAT: December SRW wheat continue to grind higher. Bulls are eyeing 20-day moving average resistance at $5.20 on persistent strength. Support stands at $5.10 on a reversal lower.
LIVESTOCK CALLS
CATTLE: Choppy/higher.
HOGS: Choppy/higher.
CATTLE: Cattle futures are expected to open higher amid technical buying. December live cattle futures continue to trade near 40-day moving average support. A close below which would open the door for lower prices, but that level has continued to provide robust support. Cash cattle trade is pointing to another week-over-week decline, which could limit gains after the open. Wholesale beef continues to work lower as well, with Choice sliding another $5.25 to $363.22 while Select sunk $3.49 to $343.40.
HOGS: Lean hog futures are expected to open wit ha mostly firmer tone on corrective buying. December futures have seen persistent selling for four consecutive sessions but saw some profit-taking late on Thursday. The CME lean hog index is down another 56 cents to $103.70, extending the seasonal decline. The daily losses are getting larger in the index, which could be spurring selling in futures. Pork cutout is down another $1.00 to $107.35 as all cuts except loins saw losses on the day.