Corn is mostly 4 cents lower at midmorning.
- Corn futures are posting followthrough selling in the wake of USDA’s bearish quarterly grain stocks data on Tuesday.
- A midnight U.S. government funding deadline passed with no agreement among Congress members, triggering the government’s first shutdown in nearly seven years and shuttering the government, aside from essential duties.
- Favorable drying conditions are likely across the U.S. Midwest through the weekend and into early next week supporting summer crop maturation and good harvest, notes World Weather Inc. The exception will be in Nebraska, into the eastern Dakotas and western Minnesota.
- December corn futures have edged below support at $4.12 1/2, with additional support at $4.09 1/2. The 40-day moving average of $4.14 1/2 is initial resistance.
Soybeans are mostly 4 to 5 cents lower, while soymeal is $2.90 lower. Soyoil is around 50 points higher.
- Soybeans are extending lower amid pressure from soymeal, which has carved fresh contract and multiyear lows.
- Republican lawmakers said China won’t begin purchasing U.S. agricultural products anytime soon after a briefing from David Perdue, the U.S. ambassador to China. “We recognize that China has intentionally not bought farm goods. We don’t expect them to change that. That’s part of the long-term stuff,” Senator Mike Rounds, a South Dakota Republican, said after the briefing Tuesday and as reported by Bloomberg.
- Many coarse grain and oilseed production areas of Inda will be plagued by frequent rain in the next week, slowing summer crop harvesting and raising some quality concerns especially for soybeans and some pulse crops. World Weather forecasts drier weather late next week and into the following weekend.
- November soybeans gapped lower overnight and have notched a fresh for-the-move low, though support lies at $9.95. Resistance is at the overnight high of $10.00 1/2 and is backed by the 10-day moving average.
Wheat futures are mostly 4 to 8 cents lower.
- SRW wheat futures are weaker amid persistent technical selling, though some support stems from a weaker U.S. dollar.
- Ukraine’s economy ministry has increased its projection for the country’s winter wheat sowing area by 9%, improving prospects for a boost to exports needed to help fund its defense against Russian forces.
- The Taiwan Flour Millers’ Association has issued an international tender to purchase an estimated 80,550 MT of grade 1 milling wheat to be sourced from the U.S.
- December SRW futures are trading within Tuesday’s lower range, with support at this week’s low of $5.02, while resistance stands at $5.11 1/2, which is backed by the 10-, 20- and 40-day moving averages, layered from $5.16 1/2 to $5.24 1/4.
Live cattle are solidly higher, while feeders are notching heftier gains at midsession.
- Nearby live cattle are correctively firmer after recent selling.
- The FDA has conditionally approved Dectomax-CA1 (doramectin injection) injectable solution for the prevention and treatment of New World screwworm larval infestations, and prevention of NWS for 21 days. The conditional approval is for use in cattle only.
- Choice boxed beef rose 35 cents to $371.03 on Tuesday, while Select slid another $1.64 to $347.25.
- December live cattle are testing resistance at the 40-, 20- and 10-day moving averages, layered from $235.19 to $235.84, while initial support lies at $233.84.
Hog futures are mixed at midmorning.
- Nearby lean hogs have turned from earlier lows but continue to face pressure from wholesale weakness.
- The CME lean hog index is down another nickel to $104.73 as of Sept. 29.
- Pork cutout fell $1.88 on Tuesday to $110.34 amid declines in all cuts aside from primal ribs. Movement totaled 309.9 loads.
- December lean hogs are testing support at the 20-day moving average, with additional support at $88.06. The 10-day moving average of $88.96 is initial resistance and is backed by last week’s high of $91.525.