Corn is mostly a nickel higher at midmorning.
● Corn futures have rallied from overnight lows amid elevated geopolitical tensions, though technical resistance is limiting a move higher in midmorning trade.
● USDA reported weekly corn export inspections for the week ended Jan. 1 totaled 1.21 MMT, down 128,115 MT from the previous week and within the pre-report range of 900,000 MT and 1.4 MMT.
● Dryness in southern Argentina is a concern and with limited rain and periodic warm conditions expected over the week, some yield potential may decline, notes World Weather Inc. Scattered showers from late this week through mid-month will be extremely important in stopping the decline in production potential – any missed rains will worsen the situation, according to the forecaster.
● March corn futures are facing resistance at the 20-, 40-, 10- and 200-day moving averages, layered from $4.44 to $4.45 1/2. Initial support lies at the 100-day moving average of $4.38 3/4.
Soybeans are around 16 to 17 cents higher, while soymeal is $3.70 higher. Soyoil is around 60 points higher.
● Soybeans are correctively higher after a heavy selling since mid-November.
● USDA reported weekly soybean export inspections totaled 980,518 MT during the week ended Jan. 1, down 206,918 MT from the previous week but within the pre-report range of 750,000 MT to 1.15 MMT.
● Crops in Brazil are rated well and should continue to perform favorably due to a good mix of rain and sunshine over the next two weeks, according to World Weather. A few drier pockets are unlikely to have a big impact on production potential.
● India’s palm oil imports fell to an eight-month low in December, weighed down by weaker winter demand and as refiners increased purchases of rival oils, according to Reuters.
● March soybeans are facing resistance at the 10- and 200-day moving averages, trading at $10.61 3/4 and $10.66 1/4. Initial support lies at $10.40 1/4.
Winter wheat futures are 5 to 9 cents higher, while HRS futures are around 2 cents higher.
● SRW wheat futures are posting gains, in tandem with corn and soybeans amid bargain buying.
● USDA reported weekly wheat inspections totaled 183,305 during the week ended Jan. 1, down 135,345 MT from the previous and short of the pre-report range of 200,000 to 350,000 MT.
● U.S. HRW wheat production areas need moisture and cooler temps, according to World Weather Inc. Winter crops are not dormant in Texas or Oklahoma, though dry soil conditions and shortened hours of daylight is limiting growth. Unusually warm weather is expected to continue through Wednesday of this week.
● Ukrainian exports of key agricultural commodities fell to 3.28 MMT in December, down from 3.58 MMT in November, mostly due to smaller wheat and soybean shipments, according to traders’ union, UGA earlier today.
● March SRW futures are up against resistance at the 10-day moving average, currently trading at $5.13, while initial support lies at $5.05 1/2, which is backed by last week’s low of $5.01 1/2 and psychological support at $5.00.
Live cattle are firmer while feeders are posting heftier gains at midmorning.
● Cattle futures are posting modest followthrough strength as traders pause in the wake of Friday’s strong gains.
● Mexican authorities reported a case of the New World Screwworm parasite late last week, Reuters said, the second case reported in two days as Mexico works to contain an outbreak that has kept the U.S.-Mexico border closed to Mexican livestock. The parasite was detected and treated in a goat in the State of Mexico, which borders capital Mexico City, the ministry said, adding that the 20 other animals at the site tested negative and were given preventive treatment.
● Wholesale beef values rose on Friday, with Choice up $2.52 to $349.97, while Select rose $4.54 to $346.92. Movement was light at only 85 loads.
● February futures are facing resistance at $237.725, while support serves at the 100- 10- and 20-day moving averages, layered from $232.18 to $230.16.
Hog futures are notably firmer at midsession.
● Lean hog futures have notched the highest intraday level since mid-Oct, with support from cattle futures and an improved technical posture.
● The CME lean hog index is down 41 cents to $81.82 as of Dec. 31.
● The pork cutout value rose 83 cents to $94.57 on Friday, led by gains in primal picnics and ribs. Movement was light at 177.6 loads.
● February lean hogs have edged above the 10- and 100-day moving averages and are now facing resistance at the Oct. 14 high of $86.425, while initial support lies at the 20-day moving average of $84.25.