GRAIN CALLS
Corn: 1 to 3 cents higher.
Soybeans: 11 to 13 cents higher.
Wheat: Winter wheat 5 to 8 cents higher; HRS 2 to 4 cents higher.
GENERAL COMMENTS: Soybeans and wheat saw impressive gains overnight while corn struggled against the 200-day moving average. Corn needs to break above that level to see the complex continue to work higher. Outside markets are quiet this morning as front-month crude oil futures and the U.S. dollar index are both modestly lower.
President Trump late Tuesday said Venezuela would relinquish as much as 50 million barrels of oil to the US, worth roughly $2.8 billion at the current market price, announcing the cargoes would be sold with proceeds benefiting both countries. “The announcement late on Tuesday, which came with few details, marked a significant step up for the U.S. government as it seeks to extend its economic influence in Venezuela and beyond after the capture of leader Nicolas Maduro over the weekend. It’s also a blow to China, previously the top buyer of the country’s oil and a close partner,” reported Bloomberg. “I am pleased to announce that the Interim Authorities in Venezuela will be turning over between 30 and 50 MILLION Barrels of High Quality, Sanctioned Oil, to the United States of America,” Trump wrote in a social media post.
“President Trump has made acquiring Greenland a national security priority of the United States,” according to White House Press Secretary Karoline Leavitt. “The president and his team are discussing a range of options to pursue this important foreign policy goal, and of course, utilizing the U.S. military is always an option at the commander in chief’s disposal,” she said Tuesday. Still, U.S. Secretary of State Marco Rubio downplayed the notion of any U.S. military action in a briefing with lawmakers on Monday, instead signaling that a U.S. invasion is not imminent and that the U.S. goal was to buy the island from Denmark. European leaders have issued a joint statement warning that the U.S. needs to respect the territorial integrity of Greenland and Denmark, and that security in the Arctic must be achieved collectively with NATO allies.
China’s central bank extended its gold-buying streak to 14 months, underscoring sustained official demand for bullion as prices surge to record. Bullion held by the People’s Bank of China rose by 30,000 troy ounces last month, according to data released on Wednesday and as reported by Bloomberg. That brings total purchases since November 2024, when the current buying cycle started, to around 1.35 million ounces, or 42 tons. Gold has experienced a price-volatile run in the last few weeks, after surging to a record high last fall.
CORN: March corn continues to battle against the 200-day moving average at $4.46 1/4. Stiff resistance stands at $4.50 while bulls are ultimately looking to hold support at $4.43 3/4.
SOYBEANS: March soybeans reversed higher overnight. Bulls are eyeing resistance at $10.73 1/2 on continued strength. Support stands at $10.62 3/4 then $10.56 1/4 on a turn back lower.
WHEAT: March SRW futures saw impressive gains overnight. Bulls are looking to break prices above the 20-day moving average at $5.17 3/4. Support stands at $5.13 1/4 then $5.10 1/2 on a turn lower.
LIVESTOCK CALLS
CATTLE: Sideways/higher.
HOGS: Choppy/higher.
CATTLE: Cattle futures are expected to open sideways to higher as recent consolidation could persist. Tight cash fundamentals continue to support higher cash cattle prices, but poor packer margins and weak wholesale beef prices have stalled negotiations. Traders are awaiting cash cattle trade to push futures higher as futures continue to hold steady premiums above the cash market. Wholesale beef continues to stall as choice slid $2.45 to $351.25 Tuesday while select dipped 42 cents to $351.08, narrowing the choice/select spread to a meager 17 cents.
HOGS: Lean hogs are expected to open with a mostly firmer tone in a continuation of recent strength, though continued consolidation could limit gains after the open. Losses in the CME lean hog index have slowed, as the index is down another 8 cents to $81.54. Traders anticipate a seasonal low is close at hand as February futures trade above the cash market. Wholesale pork fell under pressure Tuesday, sliding $2.59 to $91.25 amid losses in all cuts, though demand remains robust at 419.13 loads.