GRAIN CALLS
Corn: 1 to 3 cents higher.
Soybeans: 5 to 7 cents higher.
Wheat: 4 to 6 cents higher.
GENERAL COMMENTS: Wheat pressed to fresh highs overnight and continues to lead strength while corn and soybeans traded within Wednesday’s range. Stiff overhead resistance at $4.35 persists in corn, which was the bottom end of the sideways range from November through December. Front-month crude oil futures continue to press higher and hit a four-month high overnight while the U.S. dollar index continues to fall under pressure.
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President Trump warned Iran to make a nuclear deal with the U.S. or face military strikes far worse than the attack he ordered last June, increasing pressure on the regime and propelling crude oil prices higher. In a social-media post late Wednesday, Trump said the fleet of U.S. ships he’d ordered to the region, led by the USS Abraham Lincoln aircraft carrier, is “ready, willing, and able to rapidly fulfill its mission, with speed and violence, if necessary,” Bloomberg reported. “Hopefully Iran will quickly ‘Come to the Table’ and negotiate a fair and equitable deal - NO NUCLEAR WEAPONS - one that is good for all parties,” Trump wrote. In response, Iran said it stands ready for dialogue based on mutual respect and interests but warned that “IF PUSHED, IT WILL DEFEND ITSELF AND RESPOND LIKE NEVER BEFORE,” the country’s mission to the United Nations said in a post on X.
The Federal Reserve, as expected, left interest rates on hold Wednesday after cutting in the three previous meetings, with Chair Jerome Powell giving no indication the central bank is in a rush to resume easing despite intense pressure from President Donald Trump. “I would bet pretty heavily that there’s not another rate cut under Jay Powell,” said closely followed bond-market guru Jeffrey Gundlach, founder, CEO and chief investment officer of Doubleline Capital, in a CNBC interview after Powell’s post-meeting news conference.
Talks between top U.S. Senate Democrats and the Trump administration aimed at averting a federal government shutdown have moved closer to Democrats’ demands, according to a person familiar with the negotiations and as reported by Bloomberg. No deal has yet been reached, the person said late Wednesday night. Without an agreement, government funding will lapse on Saturday for much of the federal government, including the Departments of Defense and Health and Human Services, but not USDA. Senate Democratic Leader Chuck Schumer has insisted Republicans agree to remove long-term Homeland Security funding from a massive spending bill to keep the government open past Friday. Some senators in both parties have said they could support a short-term stopgap measure for Homeland Security funding to give both sides more time to discuss potential restrictions on immigration enforcement operations. The Senate is set to hold the first procedural vote on the spending package this morning. Any single senator could trigger a brief government shutdown through procedural action, Bloomberg said.
CORN: March corn futures favored the upside overnight. Bulls are eyeing resistance at $4.33 1/4 on persistent strength, with additional resistance at $4.35. Support comes in at $4.31 then $4.28 1/2 on a turn lower.
SOYBEANS: March soybeans saw impressive gains overnight. Prices remained in Wednesday’s range with resistance standing at $10.84 3/4. Support comes in at $10.74 1/4 on a turn lower.
WHEAT: March SRW futures continue to lead strength.Next resistance stands at $5.44 1/2, which sees little reinforcement until $5.50. Support comes in at $5.33 1/2 on a reversal lower.
LIVESTOCK CALLS
CATTLE: Choppy/lower.
HOGS: Choppy/lower.
CATTLE: Live cattle futures are expected to open with a mostly weaker tone as stiff technical resistance from the early January highs continues to weigh on prices. Cash negotiations remain slow so far this week with light trade taking place at $234.00. Wholesale beef ended Wednesday mixed with modest strength coming back to choice cutout, which rose $1.63 to $369.74 as select slid $1.62 to $363.57.
HOGS: Lean hogs are expected to open with a mostly weaker tone in a continuation of Wednesday’s selling pressure. Hefty premiums to the cash market weighed on futures, leading to a close below the 10-day moving average for the first time since Jan. 2. The CME lean hog index is up another 79 cents to $85.22 as of Jan. 27. Meanwhile, pork cutout fell another 64 cents to $95.05, led by losses in bellies and loins.