Corn futures are mostly 2 to 5 cents higher at midmorning with old-crop leading gains.
- Nearby corn futures are reclaiming a portion of Tuesday’s losses amid, fresh export news, a return of bull spreading and end-of-month buying.
- USDA reported corn sales of 120,000 MT to unknown destinations for 2024-25.
- Ethanol production averaged 1.040 million barrels per day (bpd) during the week ended April 25, up 7,000 bpd (0.7%) from the previous week and 53,000 bpd (5.4%) above the same week last year. Ethanol stocks declined 92,000 barrels to 25.389 million barrels.
- China will plant four to five times more genetically modified (GM) corn this year than last, Reuters reported, building momentum in a rollout that has been slowed by tight state controls, public skepticism and mixed trial outcomes. China’s GM corn planting area is on track to increase to between 40 million and 50 million mu (3.3 million hectares) this year from roughly 10 million mu in 2024, according to CITICS Research and three seed industry insiders.
- Overnight, South Korea purchased 65,000 MT of U.S. corn and 132,000 MT of optional origin corn.
- July corn futures are facing resistance at the 100-, 20- and 10-day moving averages, layered from $4.79 1/2 to $4.83 3/4. Initial support lies at Tuesday’s low of $4.68 1/2.
Soybeans are 7 to 8 cents lower. Soymeal futures are around $1.00 lower, while soyoil is mostly 30 points lower.
- The soy complex is weaker despite strength in corn and wheat, as favorable weather and trade concerns weigh on soybeans.
- China’s used cooking oil (UCO) exports to the U.S., its largest buyer, are set to plunge in coming months due to steep tariffs, forcing sellers to divert shipments to Europe and elsewhere, Reuters reported. Shipments to the U.S. are tumbling with the last cargoes sailing around late March and early April before trade grinds to a halt, said three China-based UCO traders.
- Argentine farmers’ soybean sales were the slowest in 11 years despite the easing of exchange controls that President Javier Milei hoped would encourage sales. According to the ag ministry, soybean sales reached 24% of the 49 MMT estimated harvest as of April 23.
- July soybeans bounced from the spike of the 100-day moving average at $10.41, while resistance stands at the 200- and 10-day moving averages, trading at $10.49 1/2 and $10.51.
Winter wheat futures are 8 to 12 cents firmer, while HRS futures are mostly 5 to 6 cents higher.
- Winter wheat futures are notching corrective gains following new contract lows overnight.
- Wheat conditions in the central U.S. are improving and that trend will continue, though portions of Oklahoma are becoming too wet, notes World Weather Inc.
- Winter crops in much of Europe are beginning more aggressive growth amid mostly favorable moisture conditions. World Weather reports there will be some need for greater moisture in the North and Baltic Sea regions and in the lower Danube River Basin into Ukraine soon.
- July SRW futures are being supported by the new contract low of $5.23 1/4, while the 10- and 20-day moving averages, trading at $5.45 3/4 and $5.50, serve as resistance.
Live cattle are higher while feeders are posting mild losses at midmorning.
- Nearby live cattle have rebounded from earlier losses as cash fundamentals remain supportive.
- Choice boxed beef prices jumped another $5.49 to $348.26 on Tuesday, eclipsing the August 2021 peak to reach the second highest ever behind the 2020 surge to a record $450.92.
- Despite surging wholesale beef prices, packer margins remain deep in the red given record cash cattle prices.
- Cash cattle negotiations have been slow to develop with packers wanting to buy cattle at lower prices given highly negative margins while feedlots want higher bids.
- June live cattle are being limited by Tuesday’s high of $210.975, while support is layered at $209.54 and $208.88.
Hog futures are narrowly mixed at midsession.
- Nearby lean hogs are chopping around unchanged.
- The CME lean hog index is up another 60 cents to $88.78 as of April 28, the ninth straight daily rise. During that span the index has risen $3.69.
- The pork cutout value dipped $1.03 to $96.59 amid declines in primal loins, hams and butts. Movement totaled 331.9 loads.
- China, the world’s biggest pork consumer, is no longer a viable market for top U.S. pork processor Smithfield Foods due to retaliatory tariffs by Beijing, company executives said. Beijing’s additional tariffs pushed China’s effective duty rate on U.S. pork to 172%, according to industry data.
- June lean hogs are testing resistance at the 100- and 10-day moving averages, trading at $99.41 and $99.53, while initial support lies at $98.63.