CME experiences technical issues. On time reopening questionable.

Good morning, grain futures are called mixed to higher at the start of this morning. Whether we start is still a question, as the CME experienced a computer outage Thursday night, which was termed a cooling issue that took down all of its trading capabilities. Some of them have been restored as of this morning, but a full reopening is not yet confirmed. We will send out an update later this morning if we are on track for an 8:30 a.m. opening.

Export sales inspections were substantial, released one day late after the Thanksgiving Day holiday, which typically would have had them on a Thursday morning. Sales of corn were put at a substantial 2.82 MMTs, with new crop 2026-2027 at 531,500 MTs. Soybeans were 1.11 MMTs, with wheat disappointing at 340,100 MTs. We will see if we get any flash sale announcements after 8:00 a.m. this morning, as we anticipate a large number from China based on early-week rumors after the President. Trump stated he had a reasonable phone call with Pres. Xi.

Heavy rains were reported across northern Goiás, Tocantins, and into Bahia over the last 48 hours. Forecast totals in central and northern Argentina have improved meaningfully since Wednesday. Uruguay and southern Brazil will dry out over the next two weeks, but the risk is low after an extremely wet late spring. Current crop expectations Soybeans: Brazil 178 MMT, Argentina 50 MMT, Paraguay 11.5 MMT Corn: Brazil 130 MMT, Argentina 60 MMT.

Spain confirmed its first case of African Swine Fever since 1994. Initial reporting frames it as isolated, and local farms are already acting to contain it. Hog markets are quietly forming a constructive base after breaking below $80 in mid-November.

Live and feeder cattle futures had seen substantial recovery gains on Wednesday, and a steady firm opening is anticipated this morning. This followed cash trade in the north on Wednesday, where live sales in the north were off $7.00 at $210, while sales in the South were at $215, also $7 lower for the week. Box beef values also softened with this past week, the choice cutout was off $1.81, while select was $0.42 lower.

Short-term on the charts, there is substantial resistance on the recovery bounce for February live cattle at 215-216. Substantial support is now at 204.50-205.00. January feeder cattle run into significant resistance today at the continuation chart 15-day MA, which has been substantial on the recent collapse. That number today falls between 319.00-319.75.

Keep an eye on the December cattle option expiry next week. We’ve seen massive buying at the nearby strikes, with the most significant open interest at the $220 and $210 levels. Delta hedging around those strikes should provide some stability before producers decide how to roll their hedges.