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Corn is mostly 7 to 8 cents at midmorning.
- Corn futures are posting solid gains, led by strength in crude oil.
- The International Energy Agency has proposed the largest release (400 million barrels) of oil reserves in its history to bring down crude prices. The release would exceed the 182-million-barrels of oil that IEA member countries put onto the market in two releases in 2022 when Russia launched its full-scale invasion of Ukraine, according to the Wall Street Journal.
- Some concern remains over interior southern Brazil and Paraguay dryness. A few showers are possible, but the precipitation expected will not be very relieving and more moisture will be needed, according to World Weather Inc.
- May corn futures are facing resistance at $4.59, which is backed by this week’s high of $4.76. Support is layered at the 10-, 200-, 100- and 20-day moving averages, trading from $4.50 1/2 to $4.44 3/4.
Soybeans are 13 to 21 cents higher, while soymeal is around 70 cents higher. Soyoil is 270 points firmer.
- Soybeans are solidly higher amid support from notable strength in soyoil futures.
- Southeastern Argentina and Uruguay remain drier than usual and in need of rain. Some of that need may be fulfilled by rain next week; though follow up precipitation will still be needed. In the meantime, the heart of Argentina’s coarse grain and oilseed region will remain in good shape with alternating periods of rain and sun dominating the next two weeks, notes World Weather.
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- May soybeans continue to face initial support at Tuesday’s close of $12.01 3/4, which is backed by the 10- and 20-day moving averages. Resistance stands at this week’s high of $12.33 3/4.
Wheat futures are mostly 4 to 8 cents higher.
- SRW wheat futures are firmer, though U.S. dollar strength is curbing buyer interest.
- Too much heat and some dryness in the western wheat areas of the U.S. Plains is threatening a poor start to crop development this spring. There is also some concern over crop conditions in Nebraska, northeastern Colorado, South Dakota and Montana since those areas were snow free when bitter cold occurred in late January and early February possibly damaging some of the crop, according to World Weather.
- For the fourth straight month FranceAgriMer cut its forecast for French wheat exports outside of the European Union in 2025-26, which raised its outlook for ending stocks to a 16-year high.
- Jordan’s state grains buyer has issued an international tender to buy up to 120,0000 MT of milling wheat which can be sourced from optional origins, according to Reuters.
- May SRW futures are facing initial resistance at $6.13 1/4, which is backed by this week’s high of $6.49 3/4. Initial support lies at the 10-day moving average, currently trading at $5.96 3/4.
Live cattle are notably weaker, while feeders are posting heftier declines.
- Cattle futures are weaker as technical challenges remain and uncertainty grows around supply and demand fundamentals.
- Cash cattle trade is slow to develop this week, and is likely to continue to be delayed late into the week.
- Boxed beef values rose on Tuesday, with Choice up $3.38 to $394.67, while Select rose $3.15 to $386.77. Movement totaled 94 loads.
- April cattle futures are facing initial support at $230.13, which is backed by the 200-day moving average. The 10-day moving average of $237.58 serves as initial resistance.
Hog futures are posting moderate losses at midsession, with greater weakness in summer deferred contracts.
- Lean hog futures are facing pressure in tandem with cattle futures.
- The CME lean hog index is up a dime to $90.97 as of March 9.
- The pork cutout value fell $2.22 on Tuesday to $99.10 amid declines in all cuts aside from primal ribs. Movement improved to 348.1 loads for the day.
- April lean hogs are trading within Tuesday’s range, with support serving at the 40- and 20-day moving averages, layered from $95.28 and $94.63. Initial resistance stands at $96.64, which is backed by the Feb. 9 high of $97.625.