Corn futures are 7 to 10 cents lower at midmorning.
- Corn futures are facing notable pressure amid heightened risk off sentiments across the ag complex.
- Canada could impose non-tariff measures such as restricting its oil exports to the U.S. or levying duties on U.S. imports if the trade dispute escalates further, Canada’s energy minister Jonathan Wilkinson said. Noting, “everything is on the table,” he stated Canada is considering imposing tariffs on U.S. ethanol as a part of a second tranche of trade penalties.
- Ethanol production during the week ended March 7 averaged 1.062 million barrels per day, down 31,000 bpd (2.8%) from the previous week but up 38,000 bpd (3.7%) from the same week last year. Ethanol stocks rose 87,000 barrels to 27.376 million barrels.
- May corn futures are being hemmed by the 10- and 100-day moving averages, each trading around $4.64 1/2, while support lies at the 200-day moving average of $4.55 1/2.
Soybeans are 12 to 14 cents lower, while soymeal futures are around $2.50 lower. Soyoil is posting 60-cent losses.
- Soybean futures are under pressure due to technical selling and concerns around biofuels production.
- The expiration of the $1-per-gallon blenders tax credit on Dec. 31, 2024, has led to the shutdown of multiple biodiesel plants in Iowa. Industry leaders face uncertainty as the Treasury Department has yet to finalize rules for the replacement 45Z Clean Fuel Production Tax Credit.
- Industry groups representing truckers, fuel marketers and convenience store operators are urging Congress to reinstate the expired 40A Biodiesel Tax Credit. In a letter to House Ways and Means Chair Jason Smith (R-Mo.) and Ranking Member Richard Neal (D-Mass.), they warned the credit’s expiration has led to volatility in diesel markets and could drive up costs for trucking, home heating and rail industries.
- Argentine oilseed workers called off a national strike at local soybean processing plants late Tuesday due to a government order that came hours before it was set to start, according to a leader of the SOEA union.
- May soybean futures continue to be pressured by the 10-day moving average of $10.15 3/4, while support lies at $9.95 1/2, which is backed by the March 4 low of $9.91.
Wheat futures are unchanged to a nickel lower.
- SRW wheat futures are favoring the downside in narrow, consolidative trade with a firmer U.S. dollar weighing on prices.
- France’s ag ministry lowered its 2024-25 wheat export forecast outside the EU by 200,000 MT to 3.2 MMT, the lowest in the office’s records back to 1996-97. The ministry raised wheat exports within the bloc by 40,000 MT to 6.24 MMT, still 0.3% below last year.
- Canadian Farmers intend to plant 27.5 million acres of wheat this year, up 702,000 acres (2.6%) from last year. Spring wheat area is expected to drive the increase, rising 2.5% to 19.4 million acres. Canola plantings are expected to decline 365,000 acres (1.7%) to 21.6 million acres.
- May SRW futures are hovering above the 10-day moving average of $5.52 1/4, while resistance stands at $5.61 1/4.
Live cattle are posting strong gains while feeders are sharply higher at midmorning.
- Nearby live cattle are solidly higher, with wholesale strength and lingering bullish fundamentals driving gains.
- Cash cattle trade is slow to start this week, with little to no trade taking place. Packers are likely cautious in raising bids amid weak margins, while feedlots are holding out for higher prices after last week’s reversal higher
- Wholesale Choice beef prices firmed $3.62 to $321.20 on Tuesday while Select slipped 9 cents to $306.86. Movement strengthened to 146 loads, including 109 boxes of Choice cuts. Choice beef has firmed $10.43 since Feb. 21, which has improved packer margins, though they remain deep in the red.
- April live cattle are testing resistance at $200.98 for the third straight session, with additional resistance serving at $202.42. Initial support lies at $200.02.
Hog futures are mixed at midsession.
- Nearby lean hogs are extending Tuesday’s losses, driven by technical pressure and risk-off sentiments as trade tensions escalate.
- The CME lean hog index is down a penny to $89.70 as of March 10, the fifth straight daily decline, though the total drop during that period is only 50 cents.
- The pork cutout fell 64 cents to $97.58 on Tuesday, led by losses in primal bellies.
- April lean hogs continue to be limited by the 20-day moving average of $87.78, while support lies at $85.78.