Pro Farmer wishes you a Merry Christmas! Please be advised of the following holiday schedule:Markets: Early close Wednesday; closed Thursday.Reports: On Wednesday and Friday, we will observe an abbreviated schedule, publishing First Thing Today (8:00 a.m. CT) and After the Bell (Post-close). We will resume our regular publishing schedule on Monday, Dec. 29.
Corn is mostly unchanged to a penny lower at midmorning.
● Corn futures are pausing after notching modest gains yesterday, as choppy price action continues to maintain a hold on the daily chart.
● USDA this morning reported export sales of 1.744 MMT of corn for delivery in the current marketing year the week ending December 11th, up from 1.478 MMT last week and at the higher end of analyst expectations that ranged from 900,000 MT to 1.8 MMT.
● Dr. Michael Cordonnier left his Brazilian corn crop estimate unchanged at 137 million tons with a neutral to lower bias. While Rio Grande do Sul received recent rains that will help production, issues remain with crops that did not receive adequate rainfall in November to have successful pollination.
● March corn futures are up against resistance in the $4.49 area as the contract struggles to break the $4.50 mark. Corn finds initial support at the 40-day moving average of $4.43.
Soybeans are 1 to 3 cents higher, soymeal is around $3.30 higher. Soyoil is around 25 points lower.
● Soybeans are seeing minor corrective gains after a prolonged downtrend. Crude oil prices and a slightly lower dollar index are also price-friendly for soybeans.
● USDA reported export sales of 2.396 MMT of soybeans for delivery in the current marketing year for the week ending December 11th, up from 1.552 MMT last week and about mid-range of analyst expectations that varied from 1.8 MMT to 2.9 MMT.
● Dr. Michael Cordonnier increased his Brazilian soybean production estimate 1 million tons to 177 million tons with a neutral to higher bias. Cordonnier cites positive weather conditions and higher than expected rainfall in the Rio Grande do Sul region as the main driver for the increase.
● March soybeans are seeing support at last week’s low close of $10.59 1/2. Soybeans are facing initial resistance at $10.70, with the 200-day moving average at $10.77 serving as further resistance.
SRW wheat futures are trading unchanged to a penny lower, while HRW is a penny to 2 cents higher. HRS futures are around a penny lower.
● SRW wheat futures are pausing the gains that stemmed from recent short-covering due to geopolitical tensions in the Black Sea.
● USDA reported export sales of 432,600 MT for wheat in the week ending December 11th, up from 381,532 MT last week and in the middle of analyst expectations ranging from 300,000 to 600,000 MT.
● Wheat exports from the EU are at 10.8 MMT for the marketing year, down 2% compared to the same time last year.
● World Weather Inc. reports depletion of soil moisture is occurring across the southern and central Plains as abnormally warm and dry weather conditions move across the area. The forecast expects conditions for soil moisture loss to continue over the next 10 days.
● March SRW futures are up against resistance at the 10-day moving average of $5.18 1/4, which is backed by the 40-day moving average. Initial support lies at $5.10, then at the psychological $5.00 level.
Live cattle are posting minor losses, with feeders also trading modestly lower this morning.
● Cattle futures are seeing modest losses this morning as cash values decline slightly and technical momentum weakens.
● USDA reported cash cattle trade last week averaged $227.97 last week, down 22 cents from the previous report.
● Choice boxed beef rose $1.24 on Monday afternoon to $362.87, with Select also gaining $4.67 to $350.69. Movement was very light at 68 loads.
● February futures see initial support at the 10-day moving average of $229.05, and then the 40-day moving-average of $226.80. The initial resistance to push through will be at the $230 mark.
Hog futures are slightly firmer at midsession.
● Lean hog futures are modestly firmer and continuing chart-based strength.
● The quarterly Hogs and Pigs report is scheduled for release this afternoon, with analysts expecting a slight decrease in the number of hogs. The average estimate sees the total U.S. inventory coming in at 74.4 million head.
● The CME lean hog index is down 2 cents to $83.71 as of Dec. 19.
● The pork cutout value fell 74 cents on Monday afternoon to $99.02 with a $4.33 decline in hams driving the fall the most.
● February lean hogs are facing resistance at $86.25, while support lies at the 10- and 100-day moving averages, trading at $84.20 and $83.85 1/4.