GRAIN CALLS
Corn: Steady to 2 cents higher.
Soybeans: 1 to 3 cents lower.
Wheat: Winter wheat 11 to 14 cents higher; HRS 6 to 8 cents higher.
GENERAL COMMENTS: Wheat led strength overnight following peace talks around the Black Sea falling apart. Corn and soybeans traded higher early but have since fell near unchanged. Front-month crude oil futures are modestly higher and hit a fresh for-the-move high overnight, while the U.S. dollar index is down over 300 points.
Saudi Arabia halted several energy facilities in the south as the Iran-backed Houthi militants claimed fresh strikes on the kingdom. The Yemen-based Houthis said they had targeted Saudi Aramco’s facilities in Abha, Najran and Jazan with ballistic missiles and drones, the group’s military spokesperson said in a statement and as reported by Bloomberg. Saudi Arabia’s energy ministry didn’t immediately respond to a request for comment. The escalation of hostilities in the region bordering Yemen is deepening concerns about energy supply disruptions, driving Brent crude prices closer to $100 a barrel. Nymex WTI crude oil futures were trading around $94 this morning, at a three-month high. Shipments through the Strait of Hormuz continue to be curtailed as the U.S. and Iran fight over control of the crucial waterway. The strikes on Tuesday caused fires at the facilities and wounded a number of people, the state-run Saudi Press Agency reported, citing officials at the energy ministry.
President Vladimir Putin remains committed to continuing Russia’s war in Ukraine after his latest meeting with U.S. envoys Steve Witkoff and Jared Kushner, Bloomberg reported, citing people familiar with the discussions. “There was no breakthrough at the Kremlin talks, the people said, asking not to be identified because the matter is sensitive. Putin is determined to seize control of all of Ukraine’s eastern Donetsk region and believes Russia’s army can achieve this goal in the next six months, they said. It’s possible there’ll be a phone call between Putin and U.S. President Donald Trump on the weekend’s diplomacy, Kremlin spokesman Dmitry Peskov said Monday, according to Interfax. He didn’t rule out a resumption of trilateral talks between Russia, Ukraine and the U.S. though he said it’s too early to discuss the timing or any venue, the news service reported.” Kremlin foreign policy aide Yuri Ushakov called Saturday’s talks “substantive, constructive, extremely frank and trusting” in a briefing after Putin met Witkoff and Kushner for more than three hours. “We had progress in Moscow,” Witkoff said at a press briefing later. “We have new ideas, and we brought them to Kyiv.” Ukraine President Zelenskyy appeared more cautious about the outcome of the talks, which also included national security chiefs from the U.K., France and Germany in Kyiv. He saw no quick end to the war, with Ukraine preparing for another tough winter ahead and looking to bolster air defenses against Russian attacks, said the report.
CORN: December corn struggled to maintain early overnight bullish momentum. Key resistance at the psychological $5.50 mark remains bulls’ hurdle. Support stands at the 10-day moving average at $5.32 1/2.
SOYBEANS: November soybeans continue to trade in a tight range. Resistance stands at the contract high of $13.24 on a push higher. Support comes in at the psychological $13.00 mark then the 10-day moving average at $12.89 3/4.
WHEAT: December SRW wheat saw some strength early in the overnight session. The 10-day moving average remains a key pivot at $7.46 1/2 today. Support stands at $7.30 1/2, last week’s low, while bulls are looking to challenge resistance at $7.50 then $7.63.
LIVESTOCK CALLS
CATTLE: Choppy/lower.
HOGS: Lower.
CATTLE: Live and feeder cattle futures are expected to open with a mostly weaker tone in a continuation of recent selling pressure. Price action remains choppy and largely dictated by the cash market. The cash market is poised for another week-over-week decline, but last week’s average won’t be known until later this morning. Choice beef slid 73 cents to $376.17 Friday, extending the recent slide.
HOGS: Lean hog futures are expected to open lower following Friday’s technical break lower. Seasonal weakness returned to the cash market, as the CME lean hog index fell 54 cents to $90.54 as of Sept. 3, spurring a technical breakdown in futures. Futures are keyed in on the cash market, which could spur volatility. Pork cutout climbed $1.74 to $92.86 Friday, led by a $12.51 jump in bellies.