GRAIN CALLS
Corn: Unchanged to 3 cents higher
Soybeans: 2 to 5 cents lower
Wheat: Winter wheat 6 to 10 cents higher, HRS 8 to 10 cents higher
GENERAL COMMENTS: Wheat futures continued strength into the overnight on concerns over production in the U.S. Plains. Corn and soybeans failed to capitalize on any spillover support, trading slightly lower. The outside markets are mixed with the U.S. dollar slightly firmer this morning and crude prices also modestly higher.
The United Nations is ready to set up a corridor to allow fertilizer to move freely through the Strait of Hormuz and reach farmers for the planting season — but doing so hinges on a political agreement to go forward, Bloomberg reported. “The U.N. is ready — we have the teams identified, we have the system prepared, we have the technical design of the mechanism. We just need a political and diplomatic solution that allows us to start,” U.N. Undersecretary General Jorge Moreira da Silva, who is overseeing the initiative, said in an interview. Talks with U.N. member states are underway in a bid to reach an international agreement, da Silva said. He didn’t share who was involved but said he’s having “extensive conversations with countries in the region, not only those that are more direct affected and involved in the conflict, but also globally.”
China’s economic growth rebounded more than expected in the first quarter, with GDP expanding 5% from a year ago. Industrial output grew 5.7% in March from a year ago, while retail sales increased 1.7%, down from a 2.8% expansion in the first two months. The economy’s growth was driven by strong manufacturing and exports. However, consumer spending and private investment continued to cool, resulting in an increasingly lopsided economy.
World Weather Inc. late Wednesday issued a special report saying drought is intensifying across the U.S. central and southern Plains. “A significant amount of the hard red winter wheat is rated poor or very poor and there is a pressing need for rain. The High Plains region will remain mostly dry through the middle of next week, with temperatures often running above or well above normal for this time of year.” Eastern sections of Oklahoma and Kansas will see periods of rain and thunderstorms that will alleviate some of the dryness, though not enough to completely fix the drought. “Wheat conditions will likely deteriorate and the need for abundant rain will remain high heading into early May.”
CORN: July corn futures saw mostly rangebound trade overnight. Resistance is found at $4.65 3/4 , while support now stands at $4.52 1/4
SOYBEANS: July soybeans went higher early in the overnight before falling lower in the morning hours. Resistance continues to stand at $11.89 1/2, with support at $11.71.
WHEAT: July SRW futures continued yesterday’s strength into the overnight. Support is at the 10-day moving average of $5.98 3/4. Initial resistance is at $6.09 1/2, with firmer levels at $6.16 3/4.
LIVESTOCK CALLS
CATTLE: Choppy
HOGS: Choppy/lower
CATTLE: Live cattle futures are expected to open choppy. Cash fundamentals remain supportive, however the potential for a continuation in profit taking is possible as the front-month contract pushed above the psychological $250.00 mark in trade earlier this week.
HOGS: Lean hogs are expected to open choppy to lower, a continuation of the technical weakness in the market that has persisted for nearly two weeks. June hogs hit a three-month low yesterday. Cash fundamentals are improving just slightly, with the latest CME lean hog index up 6 cents at $90.33. Today’s projected cash index price is up 27 cents at $90.60.