GRAIN CALLS
Corn: 1 cent lower to 1 cent higher.
Soybeans: Steady to 2 cents lower.
Wheat: 3 to 5 cents lower.
GENERAL COMMENTS: Wheat saw persistent selling pressure early this morning, seeing relative weakness compared to corn and soybeans. Corn and beans continue to consolidate sideways following Friday’s leg lower. Outside markets are supportive this morning as equity futures are solidly higher while front-month crude oil is up on corrective gains. The U.S. dollar index is around 100 points lower.
The National Weather Service reports there is a chance of showers and thunderstorms over parts of the Midwest, Northern Plains to the Southern Plains and Upper Great Lakes today and Thursday. Heavy snow is likely over parts of the Sierra Mountains today and over the northern Rockies on Thursday. The showers and thunderstorms will develop over parts of the central/southern Rockies today into Thursday morning. Rain will continue on Thursday over the Northern Plains, the middle Mississippi Valley, and the Great Lakes.
President Trump on Tuesday said he might stop trade in cooking oil with China. The potential move would be a retaliation against China for its refusal to buy U.S. soybeans, which Trump said “is an economically hostile act” that is purposefully “causing difficulty for our soybean farmers.” China remains well supplied with soybeans, largely due to South American purchases. “We are considering terminating business with China having to do with cooking oil, and other elements of trade, as retribution. As an example, we can easily produce cooking oil ourselves; we don’t need to purchase it from China,” Trump posted on social media. Just hours earlier, both Trump and U.S. Trade Representative Jamieson Greer expressed confidence that U.S.-China tensions would ease through ongoing trade talks. Used cooking oil, or UCO, became a flashpoint in the U.S. last year, with imports used to make renewable diesel fuel raising concerns that U.S. soybean farmers were missing out on demand. Imports from China reached a record high in 2024, according to USDA and as reported by Bloomberg.
Federal Reserve Chairman Jerome Powell on Tuesday said in a speech to an economics group that the Fed is on track to deliver another quarter-point interest-rate cut later this month. He pointed to the low pace of hiring and said the job sector may weaken further, adding that further declines in job openings might show up in the unemployment rate. The Fed is scheduled to meet Oct. 28-29. Powell said he and his colleagues are looking to alternative data sources due to the U.S. government shutdown, which is reducing their read on the U.S. economy.
CORN: December corn continues to consolidate following Friday’s leg lower. Support stands at yesterday’s low of $4.09 1/4, while resistance comes in at $4.15 then $4.16, the 10-day moving average.
SOYBEANS: November soybeans continue to trade sideways. Bulls are looking to hold support at $10.00. Resistance stands at $10.12 3/4, the 10-day moving average, on a push higher.
WHEAT: December SRW wheat saw resurgent selling overnight. Resistance stands at the psychological $5.00 mark while support comes in at yesterday’s contract low of $4.92 1/4.
LIVESTOCK CALLS
CATTLE: Higher.
HOGS: Lower.
CATTLE: Cattle futures are expected to open higher in a continuation of recent strength, though overbought conditions on the daily bar chart could limit gains. Live cattle futures have closed higher for eight consecutive session and are trading at contract highs. Cash cattle trade has been very light to start the week, with small lots trading hands at higher prices, at $236.00. Wholesale beef ended Tuesday higher, with choice climbing 51 cents to $364.42 while select rose 80 cents to $350.55.
HOGS: Lean hog futures are expected to open lower amid the ongoing technical breakdown. Bears look to be targeting the August low of $80.53 in December lean hogs. The CME lean hog index is down another 58 cents to $97.99 as of Oct. 13. That is notably smaller than the declines seen over the past couple weeks. Pork cutout inched 17 cents higher to $103.76 Tuesday, led by gains in bellies and ribs