GRAIN CALLS
Corn: Steady to 2 cents higher.
Soybeans: 2 to 5 cents higher.
Wheat: 1 to 3 cents lower.
GENERAL COMMENTS: Soybeans saw relative strength overnight, led by strength in meal, though failed to break above recent highs. Wheat saw profit-taking, while corn continued to trend sideways. Bulls remain in full control of the technical advantage in each market. Outside markets are quiet this morning following a volatile session on Tuesday.
Private businesses in the U.S. added 42,000 jobs in October, according to payroll service Automatic Data Processing, Inc. That is up from a 29,000 job cut in September and above forecasts of 25,000 jobs. Private employers added jobs for the first time since July. The service sector added 33,000 jobs, while jobs were shed in professional business services.
The U.S. government shutdown has become the longest in history, and with no sign of a resolution soon its economic toll is deepening. Now in its 36th day, the federal government shutdown has surpassed the previous record set in early 2019 during President Trump’s first term. Every week that passes costs the economy anywhere from $10 billion to $30 billion, based on analysts’ estimates, with several landing in the $15 billion range. Depending on its length, the shutdown could lower fourth-quarter U.S. economic growth by as much as 2 percentage points, according to the Congressional Budget Office. If the stalemate extends to Thanksgiving week, about $14 billion won’t be recovered at all, the CBO said and as reported by Bloomberg.
China has announced it will remove retaliatory tariffs on some U.S. farm products and lift export controls on several American firms, after Washington halved its fentanyl-related levies on Chinese goods. The country’s Finance Ministry confirmed in a Wednesday notice it would end tariffs imposed March 4 on soybeans and other U.S. agricultural products including corn, wheat, sorghum and chicken. That move — to take effect Nov. 10 — was previously flagged in a White House fact sheet. China is also removing an additional 15% retaliatory levy on U.S. wheat, according to the finance ministry notice and reported by Bloomberg. A major Chinese buyer is currently seeking a shipment of the grain from the U.S., which would be the first purchase by the Asian nation in more than a year.
CORN: December corn continues to trend sideways. Bulls are looking to push above resistance at $4.35 on strength, while support comes in at $4.39 3/4 then the psychological $4.25 mark on a reversal lower.
SOYBEANS: January soybean futures rebounded overnight. Resistance persists at $11.35, which has capped the upside the last couple of days. Support stands at the overnight low of $11.16 1/4 then $11.01 1/4, the 10-day moving average.
WHEAT: December SRW saw profit-taking overnight. Prices continue to trend higher on the daily bar chart, spurred higher by China reportedly returning to the U.S. market. Resistance stands at the psychological $5.50 mark then $5.59. Support stands at $5.40 then $5.35 1/4 on profit-taking.
LIVESTOCK CALLS
CATTLE: Choppy/higher.
HOGS: Choppy/lower.
CATTLE: Cattle futures are expected to open with a mostly firmer tone amid technical buying. December futures ended Tuesday near the lower end of the recent range, which could spur corrective buying today, though prices appear to be consolidating in an apparent bear flag on the daily bar chart. A break much lower would spur heavier selling efforts. Wholesale beef ended Tuesday mixed as choice cutout sunk $1.67 to $377.58 while select rose $1.32 to $361.25.
HOGS: Lean hog futures are expected to open with a mostly weaker tone in a continuation of recent selling pressure. Some corrective buying could limit the downside after the open. Prices continue to trend lower amid methodical selling with the upside largely being limited by the 10-day moving average, currently at $81.25. Losses have recently stalled in the CME lean hog index which could spur strength as well. The index is down another 8 cents to $90.90 as of Nov. 3. Pork cutout slid $2.48 to $99.17 Tuesday as all losses except ribs saw losses on the day.