Corn futures are 4 to 6 cents lower at midmorning.
- Nearby corn futures are extending Monday’s weakness as planting progress was more advanced than traders expected.
- USDA reported 12% of the corn crop was planted as of April 20, up eight points on the week and two points ahead of average.
- Weather for the safrinha corn crop remains generally beneficial, especially in central Brazil where the crop is filling. As a result, South American crop consultant Dr. Michael Cordonnier raised his Brazilian corn crop forecast 3 MMT to 125 MMT. He also raised his Argentine corn estimate by 2 MMT to 48 MMT.
- Thailand’s trade talks with Washington originally scheduled for Wednesday were postponed because the U.S. has asked Bangkok to review important issues, Prime Minister Paetongtarn Shinawatra said. “We’re not too slow and we are reviewing issues, including our tariffs that may be adjusted appropriately,” Paetongtarn said, adding that Thai agriculture exports and additional imports were being examined.
- July corn futures fell below the 10-day moving average at $4.87 3/4, which is now serving as resistance, while support lies in the $4.76 to $4.75 area.
Soybeans are 2 to 4 cents higher in old-crop contracts, with new-crop chopping around unchanged. Soymeal futures are around $1.00 higher. Soyoil is around 20 points lower.
- Soybean futures are mostly firmer in consolidative trade.
- USDA reported the soybean crop was 8% planted as of April 20, up six points on the week and three points ahead of average.
- Archer-Daniels-Midland will permanently close its soybean processing plant in Kershaw, South Carolina, later this spring as part of a cost-cutting and consolidation push announced earlier this year, the company confirmed to Reuters. The Kershaw plant is the smallest of more than a dozen soy processing facilities operated by ADM in the United States.
- Crop consultant Dr. Michael Cordonnier raised his Argentine soybean estimate 1 MMT to 49 MMT.
- July soybeans are trading between the 200-day moving average of $10.51 1/4 and the 10- and 100-day moving averages, which have converged at $10.39.
Wheat futures are unchanged to 2 cents lower.
- Wheat futures are under pressure but off their earlier lows.
- USDA rated the winter wheat crop 45% “good” to “excellent” and 21% “poor” to “very poor.” On the weighted Pro Farmer Crop Condition Index (0 to 500-point scale, with 500 being perfect), the HRW crop declined 3.4 points to 315.8 amid a 3-point drop in top producer Kansas. The SRW crop dropped 1.4 points to 368.8, as a 4.4-point decline in top producer Illinois offset improvements in the other states. CCI ratings for both crops remain below year-ago. Click here for full details.
- Rain will impact most U.S. HRW areas at one time or another over the next week, although a general soaking rain is not likely, notes World Weather Inc. Meanwhile, Midwest SRW areas are plenty wet, with more rain expected, which could raise the potential for some crop disease.
- July SRW futures are facing resistance at the 20-day moving average, currently trading at $5.54, while support is at $5.46 3/4.
Live cattle and feeders are sharply higher at midmorning.
- Nearby live cattle are firmer with support from firmer cash and wholesale fundamentals.
- Cash cattle averaged $211.63 last week, up $3.93 and snapping a three-week string of losses. Feedlots expect to receive higher prices for cash cattle again this week, despite packer margins remaining deep in the red.
- Wholesale beef values rose on Monday, with Choice up $2.00 to $333.52, while Select increased $3.22 to $318.7, though movement was light at only 75 loads.
- June live cattle are trading near the upper end of Monday’s range, with resistance at the previous session high of $206.175. Support is at $204.44.
Hog futures are posting moderate- to strong gains at midsession.
- Nearby lean hogs have extended recent strength to the highest intraday level since Feb. 27, with cash strength underpinning gains.
- The CME lean hog index is up another 25 cents to $85.71 as of April 18, the third consecutive daily gain.
- Pork cutout dropped 61 ents to $96.39 on Monday, fueled by a $3.67 decline in primal bellies.
- June lean hogs have breached resistance at the 100-day moving average of $99.50, with additional resistance at the psychological $100.00 level. Initial support lies at $98.23.