GRAIN CALLS
Corn: 3 to 5 cents higher.
Soybeans: 2 to 4 cents higher.
Wheat: 6 to 8 cents higher.
GENERAL COMMENTS: Corn, soybeans and wheat each rebounded from Tuesday’s selling pressure in the overnight session and went into the break near session highs. Volatility continues to run rampant across the general marketplace with recent reports noting Trump will leverage global tariffs to pressure trading partners. Front-month crude oil futures are modestly firmer this morning while the U.S. dollar index is around 500 points lower. Gold futures are trading at fresh all-time highs this morning.
The Trump administration is leveraging global tariff talks to pressure trading partners into limiting economic ties with China, according to the Wall Street Journal. The strategy, led by Treasury Secretary Scott Bessent, is aimed at undercutting Beijing’s global influence by requiring countries to choose between deeper access to the U.S. market or continued engagement with China. Bessent’s plan calls for over 70 nations to: Block Chinese companies from setting up operations to bypass U.S. tariffs; prevent transshipment of Chinese goods through their territories; and avoid absorbing cheap Chinese industrial output into their economies. China is also working diplomatic channels, with President Xi Jinping signing economic deals with Vietnam this week.
President Donald Trump addressed U.S. farmers directly on Tuesday, acknowledging the growing strain from the intensifying trade conflict with China. In a Truth Social post and public remarks, Trump said American farmers are “always put on the Front Line” during trade disputes, and once again find themselves bearing the brunt of retaliatory tariffs. “Our farmers are GREAT and EXCEPTIONAL,” Trump wrote, but added that their importance often means they become central players in global economic standoffs. Referencing his previous administration’s $28 billion aid package issued during the last trade war with China, Trump claimed the compensation was “all resulting from the China agreement,” and criticized President Biden for failing to uphold its benefits. He said similar support is now under White House consideration, as prices for key crops fall and inventories rise.
Trump to attend high-stakes U.S./Japan tariff and security talks. The talks in Washington today will center on contentious issues including tariffs, U.S. military cost-sharing, and broader concerns about trade fairness. Treasury Secretary Scott Bessent and Commerce Secretary Howard Lutnick will also attend, underscoring the stakes. Japan currently faces a 10% baseline tariff, plus a 25% duty on automobiles, steel and aluminum. An additional 24% tariff on exports to the U.S. is suspended for 90 days. Japan’s team, led by Economic Revitalization Minister Ryosei Akazawa, wants a full tariff rollback without deep concessions; the U.S. wants increased defense payments and broader trade adjustments. Observers are watching closely as this may set a precedent for other countries navigating U.S. tariffs.
CORN: May corn futures made up most of Tuesday’s loss overnight. Tentative resistance stands at $4.85 and is backed by resistance at $4.90 1/4. Support comes in at $4.80 then the 10-day moving average at $4.76 3/4 on additional profit-taking.
SOYBEANS: May soybean futures bounced overnight and look to be forming a bull flag on the daily bar chart. Resistance stands at $10.42 2/4 though bulls are ultimately looking to tackle psychological $10.50 resistance. Support comes in at $10.31 1/4, the 100-day moving average, which capped recent selling pressure.
WHEAT: May SRW futures bounced from strong technical support overnight. Bulls are seeking to maintain uptrend support at $5.41, which is reinforced by support at $5.35. Resistance stands at the psychological $5.50 mark then the 40-day moving average at $5.51 3/4.
LIVESTOCK CALLS
CATTLE: Choppy/lower.
HOGS: Choppy/lower.
CATTLE: Live cattle futures and feeders are expected to open with a mostly weaker tone as key technical resistance looms over the market. June live cattle futures closed Tuesday just below the key $200.00 mark, which is likely to ignite selling interest today. Cash cattle trade remains light so far this week as just 42 head of heifers have traded hands at $208.00. Cash trade is likely to remain light ahead of tomorrow’s Cattle on Feed Report from USDA. Wholesale beef continues to consolidate, with Choice beef falling 20 cents to $335.43 and Select sinking 61 cents to $315.24 on Tuesday.
HOGS: Lean hog futures are expected to open with a mostly weaker tone, driven by a resurgence of technical selling. Gains in June futures were capped by stiff technical resistance Tuesday, which is likely to weigh on prices today. The CME lean hog index continues to sink, as it fell another 63 cents to $85.67 as of April 14. Pork cutout weakened $1.05 to $91.73 Tuesday, led by a $6.26 decline in primal bellies. Weakness in cash fundamentals is likely to weigh on futures as well as post-Lent demand has done little to lift wholesale pork and cash hog values.