GRAIN CALLS
Corn: 1 cent lower to 1 cent higher.
Soybeans: 5 to 7 cents lower.
Wheat: SRW 2 to 4 cents lower; HRW 6 to 8 cents lower; spring wheat 1 to 3 cents lower.
GENERAL COMMENTS: Soybeans continue to garner the most market attention as traders wait to see what the ramifications of Friday’s Supreme Court ruling are. Wheat consolidated from recent gains overnight while corn continues to butt up against technical resistance. Outside markets are favorable this morning as front-month crude oil futures are modestly higher while the U.S. dollar index is around 120 points lower.
President Trump said he will increase the global 10% tariff to 15%, effective immediately, in a social-media post on Saturday. “Trump is rushing to preserve his trade agenda following the U.S. Supreme Court’s ruling that his use of an emergency-powers law to impose tariffs was illegal. The president’s efforts to restore and maintain the tariffs will be subjected to fresh legal challenges, and he will face lawmakers on Tuesday as he delivers the State of the Union address to Congress in Washington,” said a Bloomberg report. The president said the U.S. would impose a levy on foreign goods, but the White House clarified it’s leaving in place an exemption for many goods shipped under the U.S.-Mexico-Canada Agreement. Read a weekend Bloomberg News headline: “Trump’s Treasured Negotiating Edge Dulled by Tariff Defeat.” Meantime, U.S. Trade Representative Jamieson Greer said individual deals with trading partners, including China, the European Union, and South Korea, remain in place despite the Supreme Court’s ruling.
The U.S. and Iran are set to resume negotiations this week over Iran’s nuclear program against a backdrop of massed U.S. military forces in the Middle East. The next round of talks in Geneva is slated for Thursday. Iranian Foreign Minister Abbas Araghchi told CBS on Sunday he saw a “good chance” of a diplomatic solution to the standoff over his country’s nuclear program, while reiterating Tehran won’t be pressured by the U.S. military buildup. Concerns about a Middle East conflict, coupled with several supply disruptions, have driven crude oil prices higher despite broad expectations for a global supply glut. A potential war would put shipments at risk in the Strait of Hormuz – the choke point for exports from the world’s top oil-producing region.
USDA said cattle and calves on feed for the slaughter market in the United States for feedlots with capacity of 1,000 or more head totaled 11.5 million head on Feb. 1, down 2 percent from the same date a year ago. Placements in feedlots during January totaled 1.74 million head, 5 percent below 2025, USDA said. Net placements were 1.68 million head. Marketings of fed cattle during January totaled 1.63 million head, 13 percent below 2025. The figures weren’t far out of line with pre-report estimates. A Bloomberg survey found an average estimate for cattle on feed at 98.4% of a year ago, while placements were seen at 96% and marketings at 87%
CORN: March corn futures continue to find resistance at the 10-day moving average, currently trading at $4.28. Strength above that mark targets $4.30. Support stands at $4.25.
SOYBEANS: March soybeans traded in the lower end of Friday’s range overnight. Key support stands at $11.26 3/4, Friday’s low. A break below there could indicate a top is in place. Resistance stands at $11.40 then Friday’s high of $11.48 1/4 on a push higher.
WHEAT: March SRW futures paused from the recent rally overnight. Some additional consolidation is possible given overbought conditions on the daily bar chart. Resistance stands at $5.75 on a push higher while support comes in at $5.60 on a turn lower.
LIVESTOCK CALLS
CATTLE: Choppy/higher.
HOGS: Higher.
CATTLE: Live cattle futures are expected to open with a mostly firmer tone in a continuation of recent strength. The Cattle on Feed report favored the bulls, but the main catalyst will be how cash trade reacted. Last week’s cash cattle average will be published by USDA later this morning. Choice beef rose $1.53 to $366.70 Friday. The lack of strength in cutout continues to push packer margins deeper into the red, slowing cash negotiations.
HOGS: Lean hogs are expected to open higher in a continuation of last week’s strength. April futures closed higher each day last week, showcasing an impressive rebound from weakness seen earlier this month. Gains have been supported by resurgent strength in the cash market, as the CME lean hog index is up another 36 cents to $87.95 as of Feb. 19. Pork cutout slid 67 cents to $95.61 Friday, led by losses in butts.