Corn is mostly a penny higher at midmorning.
● Corn futures are firmer but continue to face resistance at the 200-day moving average and pressure from weakness in crude oil.
● World Weather notes central Argentina should get relief from dryness later this week and early in the weekend. Buenos Aires will get partial relief during mid-week next week and more Jan. 15-16. However, stress to crops will increase through this weekend in parts of west central into southern Argentina where rain should not be great enough to prevent continued drying of the soil with serious stress to crops in some areas.
● Weekly ethanol production during the week ended Jan. 2 averaged 1.098 million barrels, down 2.0% from the previous week and 0.4% from year-ago. Ethanol stocks totaled 23.652 million barrels, the highest since Aug. 1, and up 3.1% from last week but down 2.1% from year-ago.
● March corn futures continue to struggle at the 200-day moving average, which is backed by the Dec. 26 high of $4.53. the 20-day moving average of $4.43 1/2 is serving as support, which is backed by the 100-day moving average, currently trading at $4.39 3/4.
Soybeans are around a dime higher, while soymeal is $4.20 higher. Soyoil is fractionally higher.
● Soybeans have reclaimed Tuesday’s losses with support from solid gains in meal futures.
● Grain exporter group, Anec, forecasts Brazil’s soybean exports in 2026 will reach a record 112 MMT. Of the total, 77 MMT are estimated to be sent to China. Brazil’s 2025 exports currently total around 109 MMT, slightly below Anec’s forecast of 110 MMT, as rains slowed shipments in December.
● The driest areas in northeastern Brazil will see a drier weather pattern through the next ten days and the occasional rounds of rain expected will be important in preventing the soil from quickly drying out again, states World Weather. Regular rounds of showers and thunderstorms will occur elsewhere in Brazil and Paraguay during the next two weeks, keeping soil moisture favorable for crop development, while fieldwork is slowed.
● March soybeans are testing resistance at the 10- and 200-day moving averages, trading at $10.61 1/2 and $1.066 3/4, though additional resistance stands at the 20-day moving average of $10.70 1/2. Initial support lies at $10.51 1/2, then at last week’s low of $01.38.
Winter wheat futures are 6 to 7 cents higher, while HRS futures are 3 to 4 cents higher.
● SRW wheat futures are posting solid gains as global production concerns surface.
● China’s vice premier has called for efforts to ensure that winter wheat gets through the winter safely and said that, while the planting area remains stable, the condition of seedlings for winter wheat is currently weak in some areas, according to Reuters.
● Rain and snow will impact HRW production areas today through Friday, and may genereate the best coverage for precip since the last weekend in November, though much more will be needed to provide a better boost in soil moisture for crop use in the spring, notes World Weather.
● March SRW futures are testing resistance at the 10- and 20-day moving averages, with additional resistance at $5.18 1/2, which is backed by the 40- and 100-day moving averages, currently trading at $5.30 1/4 and $5.34 1/2. Initial support remains at $5.08 1/2, which is backed by last week’s low of $5.01 1/2.
Live cattle are lower while feeders are posting stronger losses at midmorning.
● Cattle futures are notably weaker as traders retreat from technically overbought territory.
● Light cash cattle trade has occurred this week at firmer prices.
● Boxed beef values edged lower on Tuesday, with Choice down $2.45 to $351.25 and Select down 42 cents to $351.08, narrowing the Choice/Select spread to a notable 17 cents.
● February futures continue to be pressured by this week’s high of $237.45, while initial support at $234.32 is backed by the 10-, 100- and 20-day moving averages.
Hog futures are weaker at midsession.
● Lean hog futures are extending Tuesday’s corrective weakness with pressure from wholesale weakness.
● The CME lean hog index is down another 8 cents to $81.54.
● The pork cutout value slid $2.59 on Tuesday to $91.25 amid declines in all cuts. Movement was strong at 419.3 loads, indicating strong demand.
● February lean hogs are testing support at the 100- and 10-day moving averages, trading at $85.30 and $85.18, with additional support at the 20-day moving average of $84.52. Resistance stems from this week’s high of $86.50.