Corn is mostly a penny to 2 cents lower at midmorning.
- Corn futures are weaker as technical headwinds continue to limit buyer interest.
- A European Union assessment found that President Trump’s new tariff policy will increase levies on some of the EU’s exports, including cheese and some agricultural products, above the level permitted in their trade agreement, Bloomberg reported.
- Crop consultant Dr. Michael Cordonnier lowered his 2025-26 Brazilian corn production estimate 1 MMT to 135 MMT, indicating a neutral to lower bias as safrinha planting efforts remain slow overall. “With a notable amount planted later than desired, the risk of lower yields has increased,” according to Cordonnier. He left his Argentine corn production estimate unchanged at 53 MMT, but holds a neutral to lower bias.
- The first vessel of Brazilian DDG’s destined for China left the Brazilian port of Imbituba, Santa Catarina last week, loaded with 62,000 tons of DDG’s.
- May corn futures are trading within Monday’s lower range, with support at the 20-day moving average of $4.37 ¾, while resistance remains at the 100- and 200-day moving averages, layered from $4.45 3/4 and $4.48 1/2.
Soybeans are mostly 3 to 6 cents higher. Soymeal is around $2.10 higher. Soyoil is around 50 points higher.
- Soybean futures are firmer in a unified tone, with support from both meal and soyoil.
- Dr. Michael Cordonnier lowered his 2025-26 Brazilian soybean production estimate by 1 MMT to 178 MMT, as excessive rains affect central Brazil and lacking rain in parts of Rio Grande do Sul remain. He maintained his Argentine soybean estimate of 47 MMT, but holds a neutral to lower bias after many areas faced damage caused by high winds and hail.
- European Union soybean imports for the 2025-26 season, which began in July reached 8.11 MMT by February 22, down 11% from the same period a year earlier, according to data published by the European Commission earlier today.
- May soybeans continue to find support at the 10-day moving average of $11.49, which is backed by the 20-day moving average. Resistance stands at Monday’s high of $11.65.
Wheat futures are unchanged to 4 cents lower at midmorning.
- SRW wheat futures are extending Monday’s corrective selling after reaching a fresh multi-month high.
- Record low temps across most of Ukraine in February led to deep soil freezing, which could delay the start of the grain sowing campaign, according to the head of the agricultural department of the state meteorological center on Monday.
- Dmitry Rylko, head of IKAR consultancy has noted the situation with shipments from Russian ports remain difficult, as stormy weather continues in the Black Sea, with ice preventing ships from passing through the Caspian and Baltic Seas.
- May SRW futures are facing resistance at Monday’s high of $5.83 1/2, while support at $5.70 is backed by the 200- and 10-day moving averages, trading at $5.61 and $5.58.
Live cattle are modestly firmer, while feeders are posting heavier gains at midmorning.
- Nearby futures are posting modest gains, following a two-day selloff, as technical resistance brings pause among buyers.
- Cash cattle trade averaged $246.91 last week, up $1.29 from the previous week.
- Wholesale beef values rose on Monday, with Choice up $2.52 to $369.22, while Select rose $3.57 to $364.31, though movement was light at 75 loads, indicating weakening demand as packer margins continue to suffer.
- April live cattle futures are trading within Monday’s lower range, bound by resistance at the 20- and 10-day moving averages, trading at $239.67 and $240.93. Initial support lies at the 40-day moving average of $237.40.
Hog futures are notably firmer at midsession.
- Lean hog futures gapped higher at the open and are posting solid gains with support from improving cash and wholesale fundamentals.
- The CME lean hog index is up 22 cents to $88.17 as of Feb. 20.
- The pork cutout value rose $1.79 on Monday to $97.40 amid gains in all cuts aside from primal ribs. Movement totaled 239.0 loads.
- April lean hogs are facing resistance at the 20-day moving average, trading at $95.10, while initial support lies at the 40- and 10-day moving averages, layered at $93.80 and $93.32.