GRAIN CALLS
Corn: 3 to 5 cents higher.
Soybeans: 5 to 8 cents higher.
Wheat: 6 to 8 cents higher.
GENERAL COMMENTS: Corn, soybeans and wheat each favored the upside in overnight trade, a contrast to the weakness seen most of last week. Soybeans are up on corrective buying amidst oversold conditions. Outside markets are favorable this morning as front-month crude oil futures are solidly higher while the U.S. dollar index is around 250 points lower.
USDA reported daily sales of 396,000 MT of soybeans for delivery to China, with 330,000 slated for delivery during 2025-26 and the remaining 66,000 MT for 2026-27.
February gold futures overnight hit a record high of $4,453.00 an ounce, while March silver futures notched an all-time high of $69.525 an ounce. The two precious metals rallied on safe-haven demand on the weekend news that the U.S. is pursuing a third oil tanker near Venezuela, according to a U.S. official, as President Trump intensifies an oil blockade on Nicolás Maduro’s government. The tanker being pursued is flying under a false flag and under a judicial seizure order, and is believed to be the Bella 1 tanker, a Panamanian-flagged vessel sanctioned by the U.S., according to a Bloomberg report.
Russia has intensified its attacks at Ukraine’s Odesa ports in the Black Sea, including Pivdennyi, the country’s largest, reports Bloomberg. A shipping terminal belonging to oilseed firm Allseeds was attacked over the weekend, and the facility was damaged, according to a spokesperson for Vice Prime Minister Oleksiy Kuleba. The company confirmed that its terminal came under bombardment on Dec. 20 and at least one person was killed. “The strike caused extensive damage, including significant fires on site, the destruction of thousands of tons of stored sunflower oil, and damage to critical infrastructure,” Allseeds said on its website, as reported by Bloomberg. Russia again delivered a strike at Pivdennyi port overnight, Kuleba said. Thirty containers with flour and vegetable oil caught fire after the attack. Meanwhile, Russia said a drone attack damaged infrastructure and vessels at the Black Sea port of Taman, which handles products including grains, fertilizers and oil.
Federal Reserve Bank of Cleveland President Beth Hammack says U.S. monetary policy is in a good place to pause and assess the effects of 75 basis points of rate cuts in the economy during the first quarter. “Where we are today is my base case that we can stay here for some period of time until we get clearer evidence that either inflation is coming back down to target or the employment side is weakening more materially,” Hammack said in an interview for the Wall Street Journal’s Take On the Week podcast conducted Thursday and aired Sunday, and as reported by Bloomberg. The Fed’s latest interest rate cut on Dec. 10 faced three dissents, the most since 2019. Officials are divided about the appropriate path for rates, with some policymakers more concerned about a cooling labor market and others saying the Fed should prioritize reining in above-target inflation.
CORN: March corn saw some action above 200-day moving average resistance overnight. That level, currently at $4.46 1/4, remains a key technical pivot today. Resistance stands at the psychological $4.50 mark while support lies at $4.43 1/2.
SOYBEANS: January soybeans traded higher overnight. Bulls are eyeing resistance at $10.60 then $10.69 1/4 on continued strength. Additional corrective strength is possible given the oversold nature of the market. Support comes in at the psychological $10.50 mark on a reversal lower.
WHEAT: March SRW futures turned higher overnight. Bulls are targeting resistance at $5.18 3/4, the 10-day moving average, on persistent strength. Support comes in at $5.10 then the contract low at $5.04 on a turn lower.
LIVESTOCK CALLS
CATTLE: Higher.
HOGS: Higher.
CATTLE: Cattle futures are expected to open higher following Friday’s bullish cattle on feed report. Inventory was 2 percent below December 1, 2024. Placements in feedlots during November totaled 1.60 million head, 11 percent below 2024. Placements were the lowest for November since the series began in 1996. Marketings of fed cattle during November totaled 1.52 million head, 12 percent below 2024. Marketings were the second lowest for November since the series began in 1996. Cash cattle trade picked up at the end of the week near steady with a week prior. Wholesale beef saw impressive gains Friday as choice rose $4.35 to $361.63 while select climbed $2.05 to $346.02.
HOGS: Lean hog futures are expected to open higher in a continuation of recent strength. The technical posture remains fully bullish for lean hogs, but recent weakness returning to the CME lean hog index could limit buying interest after the open. The index is down 15 cents to $83.73 as of Dec. 18, bringing an end to the recent string of gains. Meanwhile, pork cutout rose $2.33 to $99.76 Friday, led by strength in hams and bellies, though all cuts except loins saw gains on the day.