GRAIN CALLS
Corn: Steady to 2 cents higher.
Soybeans: 4 to 6 cents higher.
Wheat: 4 to 6 cents higher.
GENERAL COMMENTS: Soybeans continue to lead strength while corn and wheat made up some of the recent losses overnight. Soybeans are attempting to buy some acres for 2026, shoring up the soybean/corn ratio over the past several days. Outside markets are mixed this morning with front-month crude oil futures modestly lower this morning while the U.S. dollar index is around 135 points lower.
President Trump Wednesday afternoon said he would refrain from imposing tariffs on goods from European nations opposing his effort to take possession of Greenland, citing a “framework of a future deal” he said was reached regarding the island, Bloomberg reported. Trump announced the decision after a meeting with North Atlantic Treaty Organization Secretary General Mark Rutte at the World Economic Forum in Davos, Switzerland, but did not detail the parameters of the framework. Danish Foreign Minister Lars Lokke Rasmussen welcomed the latest developments but added that it’s obvious that Trump has not given up on his ambition to gain control of Greenland, which is still “a red line for the Kingdom of Denmark.” Rutte said a breakthrough over Greenland was secured without discussing the territory’s sovereignty with President Trump. The discussion centered on regional security in the Arctic region and how to prevent Russia and China from accessing Greenland. Global stock and financial markets breathed a sigh of relief of the framework news. Global stock markets rallied and gold prices backed off, while the U.S. dollar and Treasury markets steadied.
President Trump in a speech at the World Economic Forum in Davos, Switzerland said his new Board of Peace will work with the United Nations and work to end wars. He said only “little fires” are left regarding the war in Gaza, while saying Iran does want to talk to the U.S. Trump reiterated his desire for $1.5 trillion in annual U.S. defense spending. He said all NATO members have committed to spending 5% of the GDP on defense, except Spain.
Secretary of Agriculture Brooke Rollins Wednesday announced the launch of the New World Screwworm (NWS) Grand Challenge. “This funding opportunity marks a pivotal step in USDA’s comprehensive strategy to combat NWS and prevent its northward spread,” said a USDA press release. “This is a strategic investment in America’s farmers and ranchers and is an important action to ensure the safety and future success of our food supply, which is essential to our national security,” said Secretary Brooke Rollins. “These are the kinds of innovations that will help us stay ahead of this pest and protect our food supply and our economy, protecting the way of life of our ranchers and go towards rebuilding our cattle herd to lower consumer prices on grocery store shelves…” As part of the Grand Challenge, USDA’s Animal and Plant Health Inspection Service (APHIS) will make up to $100 million available to support innovative projects that enhance sterile NWS fly production, strengthen preparedness and response strategies, and safeguard U.S. agriculture, animal health, and trade, said the press release.
CORN: March corn futures saw modest strength overnight.Bulls are looking to tackle resistance at $4.25 before tackling the 10-day moving average at $4.27. Support comes in at $4.21 on resurgent selling pressure.
SOYBEANS: March soybeans continue to press higher. Bulls closed prices above the key 20-day moving average at $10.62 1/4 Wednesday, which remains key support. Resistance stands at $10.73 1/2 on persistent strength.
WHEAT: March SRW futures saw resurgent strength overnight. Bulls defended key support around $5.07 yesterday. Bulls are eyeing resistance at $5.14 1/2 on persistent strength.
LIVESTOCK CALLS
CATTLE: Choppy/higher.
HOGS: Choppy/higher.
CATTLE: Live cattle futures are expected to open with a mostly firmer tone as prices are supported by technical buying, though some additional consolidation is possible as the market awaits tomorrow’s cattle-on-feed report. Friday’s sell-off did some technical damage on the daily bar chart and bulls are hesitant to stick their neck out so far this week. Wholesale beef continues to work higher as choice cutout rose $1.35 and select rose $2.61 to $362.45 on Wednesday.
HOGS: Lean hogs are expected to open with a mostly firmer tone in a continuation of recent strength, though some additional consolidation is possible. Traders have been encouraged by resurgent strength in the CME lean hog index, which is up another 37 cents to $82.40 as of Jan. 20. While there has been strength in the index, volume in the cash market has been pretty light. Pork cutout rose 51 cents to $93.98, led by strength in bellies.