Corn is mostly 3 cents lower at midmorning.
- Corn futures are posting followthrough losses amid continued selling in crude and spillover from both wheat and soybeans.
- Crop consultant Dr. Michael Cordonnier lowered his 2025-26 Brazilian corn production estimate by 1 MMT to 137 MMT, and noted a neutral to lower bias. He left his Argentine production estimate unchanged at 54 MMT, and holds a neutral bias going forward.
- Brazilian farmers are increasingly adopting grain sorghum as an alternative to corn as a second crop following soybeans, especially if the corn might be planted late.
- March corn futures breached support at the 100-day moving average of $4.36 3/4. Additional support serves at $4.34 3/4, while resistance is at $4.39 1/4.
Soybeans are around 6 to 7 cents lower, while soymeal is slightly firmer. Soyoil is around 120 points lower.
- Soybeans continue to weaken, with a lacking RFS decision before year-end spurring extended selling.
- The U.S. EPA currently expects to issue a final rule setting 2026 and 2027 Renewable Fuel Standard RVOs during the first quarter of 2026, according to a notice filed with the U.S Court of Appeals for the D.C. Circuit on Dec. 15.
- Dr. Michael Cordonnier left his 2025-26 Brazilian soybean production estimate unchanged at 176.0 million tons with a neutral bias. He noted rainfall last week and over the weekend in Brazil became much more regular, favoring crop development and the planting of the remaining soybeans. Cordonnier left his Argentine estimate unchanged at 49 MMT, with a neutral bias going forward.
- China’s state stockpiler Sinograin on Tuesday sold about 323,000 metric tons of imported soybeans, or 62.9% of the total offered, according to two traders, and announced its third auction of the month as it prepares for U.S. imports, according to Reuters.
- January soybeans dipped below the 100-day moving average, with support now serving at $10.59 3/4. Initial resistance is layered at $10.72 3/4 and $10.78 3/4.
Winter wheat futures are mostly 4 to 7 cents lower, while HRS futures are around a penny to 2 cents lower.
- SRW wheat futures have reached fresh near-term lows amid increasing odds of a peace deal between Ukraine/Russia.
- Ukrainian President Volodymyr Zelenskiy said he has an agreement with the U.S. to make security guarantees legally binding through a vote in Congress as part of a deal to end Russia’s war, according to Bloomberg. The odds of a peace deal between Russia/Ukraine are rising, pressuring wheat prices.
- U.S. central and southern Plains, southern Rocky Mountain region, southwestern desert region and southern California along with northern Mexico will be dry during much of the next ten days to two weeks. World Weather notes winter crops are dormant and unaffected by such conditions; although, rain and/or snow will be needed in late winter and early spring to recharge soil moisture ahead of spring crop development.
- March SRW futures are facing support at $5.07, which is backed by the psychological $5.00 level, while resistance is at $5.17.
Live cattle are firmer, while feeders are posting heftier gains at midmorning.
- Live cattle are posting modest gains as technical resistance is curbing buyer interest.
- USDA reported the average cash cattle trading price last week was $228.19, up $6.98 from the week prior.
- Wholesale beef values rose on Monday, with Choice up $2.02 to $359.46, while Select jumped $3.08 to $347.30. Movement totaled 114 loads.
- Unusually warm temperatures are expected to return to the contiguous United States over the coming week; however, a short term bout of bitter cold in the far northern Plains and southern Canada Prairies Wednesday and Thursday will induce blizzard conditions and a short-term (2-day) bout of bitter cold conditions, according to World Weather Inc.
- February futures are facing support at $229.15, which is backed by the 10- and 40-day moving averages. Initial resistance stands at the 100-day moving average of $231.82.
Hog futures are higher at midsession.
- Lean hog futures continue to firm amid support from both cash and wholesale fundamentals.
- The CME lean hog index is up another 19 cents to $82.99 as of Dec. 12.
- The pork cutout value rose 68 cents on Monday to $98.89 amid gains in all cuts aside from primal picnics. Movement totaled 273.0 loads.
- China sharply reduced tariffs on pork imports from the European Union, worth over $2 billion in a final ruling of an anti-dumping investigation.
- February lean hogs are facing support at the 10-, 40- and 20-day moving averages, layered from $82.53 to $81.00. Initial resistance remains at the 100-day moving average of $85.39.