Corn and soybean markets are testing key resistance levels this week, with export demand and weather conditions playing crucial roles in their near-term outlook. The December corn contract needs to hold support at recent lows set just under $4.40 and break out beyond its 20-day moving average at $4.51 to attract more buyers. Meanwhile, the January soybean contract hit 20-day moving average resistance and pulled back, suggesting that significant weather concerns in South America may be needed to spark a rally. Wet conditions are expected to impact planting progress, but the market may wait for dry conditions in Brazil later in the growing season for a more substantial move.
Wheat prices continue to struggle as the dollar index surges to fresh highs, overshadowing any potential gains from Russia/Ukraine news. The December Chicago wheat contract has failed to sustain rallies above $6.00, with U.S. wheat export business showing little improvement despite Black Sea disruptions. The contract could fall another 20 to 30 cents before finding the next support levels.
In the livestock markets, December live cattle initially rose but struggled to maintain gains above the $219 to $220 area. If they can push past this resistance, the next target is $222.50 to $223.50. Feeder cattle, however, continued their upside move with gains of as much as $6.00, eyeing a target of at least $340. Meanwhile, December hogs fell over $1.00, with ongoing negativity in the cash hog market limiting any chances of strength. February and April hogs reached gains of $1.00 before backing off, with February hogs needing to close the gap above $62.15 for a more positive outlook.
The report also noted that today’s export flash sales included 136,000 metric tons of soybeans to China during the 2026/27 marketing year. Additionally, last week’s ethanol production was 1.130 million barrels/day, below expectations but up 5.1% from a year ago.