GRAIN CALLS
Corn: Steady to 2 cents higher.
Soybeans: Steady to 2 cents higher.
Wheat: Winter wheat steady to 2 cents higher; HRS 4 to 6 cents higher.
GENERAL COMMENTS: Corn, soybeans and wheat each favored the upside in overnight trade though saw an increase in selling pressure in the latter portion of the session, causing each to go into the break nearer session lows. A report from China that the U.S. is not having any talks with the nation on tariffs and that the U.S. should stop creating confusion coincided with the turn lower in grains this morning. Outside markets are unfavorable this morning as front-month crude oil futures are modestly lower while the U.S. dollar index is up around 250 points higher.
USDA reported daily sales of 235,000 MT of corn for delivery to Mexico. Of the total, 130,000 MT is for delivery during the 2024-25 marketing year, while the remaining 105,000 MT is slated for delivery during 2025-26.
China plans to exempt some U.S. imports from its 125% tariffs and is asking firms to identify critical goods they need duty-free. Reuters reported a commerce ministry taskforce is collecting lists of items that could be exempted from tariffs and is asking companies to submit their own requests, citing a person with knowledge of the situation. Beijing has not yet communicated publicly on any exemptions. An unverified list of 131 product categories that could be eligible for tariff exemptions has circulated widely on Chinese social media and among trade organizations. This list reportedly includes items such as vaccines, chemicals, jet engines, medical devices and certain semiconductor-related products (excluding memory chips). Bloomberg and other sources indicate that exemptions may also cover medical equipment, industrial chemicals (like ethane), and possibly aircraft leases — areas where Chinese industries are highly dependent on U.S. technology and components.
A U.S./India trade agreement under discussion will cover 19 categories, including greater market access for ag goods, e-commerce, data storage and critical minerals, Bloomberg reported. Terms of reference for a bilateral deal, which was finalized by both sides this week, includes trade in goods as well as services, the report said, citing people familiar with the matter.
President Donald Trump says his administration will announce trade deals “over the next three to four weeks.” Some countries “may come back and ask for an adjustment, and I’ll consider that,” Trump told Time magazine. The interview underscores that Trump is still the final word – or he views himself as the final word – on trade policy.
CORN: July corn futures continued yesterday’s reversal higher overnight, though paused near resistance at the 10-day moving average, currently at $4.84 1/2. Strength above that mark targets resistance at $4.89. Support comes in at the 40-day moving average at $4.80 on a reversal back lower.
SOYBEANS: July soybean futures found resistance at the 200-day moving average overnight, which currently stands at $10.66 3/4. That remains bulls initial target, while profit0taking finds support at $10.59 then the psychological $10.50 mark.
WHEAT: July SRW futures saw modest strength overnight. Bulls managed to inch prices higher yesterday after marking a fresh for-the-move low. Support stems from $5.39 1/4 then the contract low of $5.32 1/2. Bulls are looking to overcome psychological $5.50 resistance before tackling the 20-day moving average at $5.54 3/4.
LIVESTOCK CALLS
CATTLE: Mixed.
HOGS: Higher.
CATTLE: Live cattle and feeders are expected to open with a mixed tone as futures await direction from the cash cattle market. While nearby futures have climbed to fresh all-time highs, the cash cattle market has been slow to reciprocate, leaving traders wary of pushing cattle futures higher. While light trade so far this week is roughly steady with a week ago, active trade is likely to develop today. Wholesale beef continues to be largely sideways, though prices finished Thursday higher. Choice cutout rose $1.73 to $333.70 while Select climbed $1.83 to $316.35.
HOGS: Lean hog futures are expected to open higher in a continuation of yesterday’s reversal off key technical support. June lean hogs opened lower yesterday morning but bottomed early and ended the day near session highs. That strength is likely to extend today as cash fundamentals continue to support the recent futures rally. The CME lean hog index is up another 52 cents to $87.27 as of April 23, the sixth consecutive daily gain. Pork cutout climbed $1.78 to $95.86 Thursday as all cuts except bellies posted gains on the day.