GRAIN CALLS
Corn: 1 to 3 cents higher.
Soybeans: 4 to 6 cents higher.
Wheat: SRW 5 to 7 cents higher; HRW 2 to 4 cents higher; spring wheat 1 to 3 cents higher.
GENERAL COMMENTS: Wheat continues to lead strength while corn and soybeans followed the market higher overnight. Beans looked poised for a leg higher but stiff resistance at this week’s highs remains. Outside markets are quiet this morning given the GDP miss as front-month crude oil futures are modestly lower while the U.S. dollar index is around steady.
The U.S. economy expanded at an annualized 1.4% in Q4 2025, according to the Bureau of Economic Analysis. That is the weakest since Q1 2025 and well below expectations. That followed 4.4% growth in Q3. Consumer spending slowed alongside exports, which slid heavily from Q3. Government spending contracted sharply by 5.1%, subtracting nearly a full percentage point from GDP, largely due to the historic government shutdown.
The U.S. dollar is poised to notch its best week in four months as traders pare back expectations for Federal Reserve interest-rate cuts while geopolitical risks boost the currency’s safe-haven appeal. Bloomberg said its Dollar Spot Index has climbed 0.9% this week, set for its biggest gain since October. “Heightened inflation concerns and recent U.S. economic data have clouded the outlook for Fed easing this year, buoying the U.S. currency. A continued build-up of U.S. forces in the Persian Gulf has also burnished the appeal of the dollar, a popular destination during uncertain times,” said the report.
U.S. purchases of goods from China plunged almost 44% in December from a year earlier, to $21.1 billion, while shipments from Taiwan more than doubled during the same period to $24.7 billion, according to the Bureau of Economic Analysis, which is part of the U.S. Commerce Department. The surge in goods going from Taiwan to the U.S. was roughly double that going to China, with the U.S. taking almost a third of Taiwan’s total exports last year. The U.S. ran a $12.7 billion trade deficit in December with China, and the deficit with China fell $93.4 billion to $202.1 billion in all of 2025, while it more than doubled to almost $147 billion with Taiwan.
CORN: March corn futures bounced overnight. Persistent strength eyes resistance at $4.28 1/4 then $4.30. Support stands at $4.27 then yesterday’s low of $4.24.
SOYBEANS: March soybeans are trading in the upper end of the recent consolidation range. Resistance stands at this week’s high of $11.44 then the psychological $11.50 mark. Support stand sat $11.33 1/2 then the 10-day moving average at $11.26 1/2.
WHEAT: March SRW futures climbed to fresh highs overnight. Next resistance stands at $5.70. Meanwhile, support comes in at $5.52 1/4 on a turn lower.
LIVESTOCK CALLS
CATTLE: Choppy/higher.
HOGS: Choppy/higher.
CATTLE: Live cattle futures are expected to open with a mostly firmer tone in a continuation of recent strength. Cash trade remains light this week ahead of this afternoon’s Cattle on Feed report from USDA. Placements are expected to fall 3.5% from year ago, marketings are expected to drop 12.9%, while cattle on feed is seen as slipping 1.6% to 11.529 million head. Choice cutout rose $1.37 to $365.17 Thursday, though remains stuck in the mid $360’s.
HOGS: Lean hogs are expected to open with a mostly firmer tone in a continuation of recent strength. Some technical headwinds from the 40-day moving average could limit continued strength. The CME lean hog index is up another 40 cents to $87.59 as of Feb. 18. Bigger gains returning to the cash market could be what is needed to continue to push futures higher. Pork cutout rose 72 cents to $96.28 Thursday, led by gains in butts.