GRAIN CALLS
Corn: 2 to 4 cents lower
Soybeans: 1 to 3 cents lower
Wheat: 3 to 5 cents lower
GENERAL COMMENTS: Consolidation was the theme across the grain and oilseed markets early Friday, with some apparent near-term profit-taking pressuring prices. Soybeans were edging lower after January hit a 13-month high, boosted after Trump administration officials said China would buy 12 million metric tons of the commodity between now and January and another 25 million metric tons a year for the next three years.
The National Weather Service said a cool weather pattern is on tap from the Plains eastward due to the combination of cool air in the wake of the system pushing to the east and a reinforcing cold air mass moving in behind it; cold enough to induce lake-effect precipitation. Areas from the Rockies to the West coast and increasingly across the High Plains will see mostly above average temperatures and dry weather over the next few days.
The ICE U.S. Dollar Index, a measure of the currency against a basket of six major rivals, was up slightly early Friday, after hitting a nearly three-month high the previous session. Gains for the dollar, which came after Federal Reserve Chair Jerome Powell on Wednesday told investors to not assume a December rate cut is a foregone conclusion, were a headwind for grain futures.
CORN: Corn fell prey to profit-taking Thursday but remains in a solid uptrend. Support is seen at the week’s low of $4.26 and then at $4.20, with bears targeting a close below the October low at $4.09 ¼. Resistance is seen at Thursday’s high of $4.37 and then at $4.40, which would open the door to a test of the bullish upside objective of $4.50.
SOYBEANS: January soybeans posted a bullish outside day to the upside on the daily chart Thursday. First support is seen at $10.90, with solid support at the week’s low at $10.70 ¼. Resistance is seen at Thursday’s high of $11.14 ½ and then $11.25.
WHEAT: Wheat futures also felt profit-taking pressure Thursday after recent gains. Bulls need to fend off further pressure. First support for SRW is seen at this week’s low of $5.16 ¾ and then $5.10, with first resistance at this week’s high of $5.35 ½ and then $5.40, with bulls looking for a close above solid resistance at $5.50.
LIVESTOCK CALLS
CATTLE: Choppy/higher
HOGS: Choppy/higher
CATTLE: Stable price action over the past two sessions indicate a near-term bottom may be in, but bears remain in control. Cash markets have seen weakness. USDA Thursday reported active cash cattle trading so far this week, averaging $229.70 versus last week’s average of $237.89. Wholesale boxed-beef cutout values fell Thursday, with Choice-grade down $3.11 at $378.27, while Select-grade declined $2.27 to $359.52.
HOGS: Prices remain in a steep downtrend on the daily bar chart. Support lies at $80 and then $79, while resistance is seen at this week’s high of $82.575 and then last week’s high at $84.05. December hog futures still have a discount to the cash index, which may work to limit selling interest in futures. The latest CME lean hog index was down another 17 cents at $91.86. Today’s projected cash hog index is down another 33 cents at $91.53. Thursday’s national direct 5-day rolling average cash hog price quote is $87.99.