Corn is chopping around unchanged.
- Corn futures are chopping around unchanged in narrow, sideways trade, with support at the 200-day moving average curbing seller interest.
- The International Grains Council (IGC) raised its forecast for 2026-27 corn production to 407.3 MMT, up from 401.3 MMT last month, reflecting an upward revision issued by USDA.
- The head of a United Nations rural development agency worries that the disruption of shipping through the Strait of Hormuz is starting to become visible in agricultural harvests, posing a threat to lower farm yields and push up food prices, Reuters reported. Hormuz-related disruptions to fertilizer shipments and higher fuel and transport costs, compounded by El Niño and disruptions to Black Sea wheat supplies, are adding costs throughout the food supply chain, Alvario Lario, president of the International Fund for Agricultural Development, told Reuters.
- Conab forecasts 2026-27 corn production at 148 MMT, up 2.4% from the previous season. The first corn crop is seen at 32.1 MMT, up 8.9% and the second safrinha crop at 113.25 MMT, up 0.4%.
- December corn futures have tested support at the 200-day moving average, trading at $4.79 1/2 for the fifth straight session, while resistance remains at the 100-day moving average, trading at $4.84 1/2.
Soybeans are 6 cents lower, while meal is around $1.70 lower. Soyoil is around 25 points higher.
- Soybeans are weaker for the fourth straight session amid technical selling and harvest pressure.
- USDA reported daily sales of 330,000 MT of soybeans to China and 283,450 MT to unknown destinations during the 2026-27 marketing year.
- Members of the National Oilseed Processors Association are estimated to have crushed 203.737 million bushels of soybeans last month, according to a Reuters survey of economists, which would mark a one-year low. Reuters said the expectations for a drop are due to scheduled processing plant downtime and as some Midwest plants ran short of crushing supplies due to weather-related harvest delays. Soyoil stocks held by NOPA members were projected to fall to 1.116 billion pounds, according to the survey.
- Brazil’s 2026-27 soybean output is expected to reach a record 181.6 MMT, according to Conab, up 0.7% from the previous season, driven by a 1.4% increase in planted area to 49.3 hectares (121.8 million acres).
- November soybeans are being pressured by resistance at the 10-, 40- and 20-day moving averages, layered from $12.85 3/4 to $12.96 ½, while support lies at $12.62 1/2.
Winter wheat futures are 4 to 6 cents higher while HRS futures are chopping around unchanged.
- SRW wheat futures are being supported by a pullback in the U.S. dollar and looming global supply constraints.
- Egypt’s state grain buyer Future of Egypt has tightened quality requirements for wheat imports by requiring a minimum ‘baking strength,’ a move that could further narrow sourcing options as disruptions to Black Sea grain exports increase, according to Reuters.
- Canada’s farmers struggled to harvest this year’s crops due to an unseasonably wet September, and farmers and crop quality assessors reported damage to pulse crops and spring wheat. Reuters notes lack of quality from Canada could contribute to tighter global wheat stocks and broadly higher food prices amid conflicts in Ukraine and the Middle East.
- December SRW wheat futures are testing resistance at the 100-day moving average, though additional resistance stands at the 10-day moving average, currently trading at $6.81 1/4. Support lies at $6.66, then at $6.58 ¾, which is backed by the 200-day moving average.
Live cattle and feeders are solidly higher at midsession.
- Live cattle futures are notably firmer amid wholesale support and a strong technical posture.
- Packers are ready to extend inventories at steady prices but are hesitant to raise prices amid hopes to hold onto margins.
- Boxed beef improved on Wednesday, with Choice up $1.35 to $376.50 and Select up $4.80 to $358.47. Movement totaled 107 loads.
- December live cattle are facing resistance at this week’s high of $227.60, while support lies at the 10-day moving average of $224.47, which is backed by the 20-day moving average.
Hog futures are mixed at midmorning.
- Lean hog futures are mixed after posting fresh contract lows as fundamental and technical woes linger.
- The CME lean hog index is down 19 cents to $75.75 as of Oct. 13.
- The pork cutout value fell $1.23 on Wednesday to $79.45, led by an $11 drop in primal bellies. Movement totaled 280.2 loads.
- December lean hogs have marked another contract low of $65.80, which is now support. Additional support lies at $65.52, while resistance is layered at $66.56 and $67.12.