Market Snapshot | March 24, 2022

( )

Corn futures are 5 to 9 cents lower at midmorning, led by declines in nearby contracts.

  • Corn futures extended overnight declines after weekly USDA export sales came in at the low end of expectations.
  • USDA reported net U.S. corn sales for the week ended March 17 of 979,500 MT for 2021-22, down 47% from the previous week and down 29% from average for the previous four weeks. Net weekly sales for 2022-23 totaled 6,100 MT. Sales for 2021-22 were expected to range from 800,000 to 1.8 million MT and sales for 2022-23 were expected to range from 100,000 to 400,000 MT.
  • U.S. farm groups are urging USDA to allow farmers to plant on land set aside for conservation to counteract global supplies cut off by the ongoing war in Ukraine.
  • Argentina’s Buenos Aires Grain Exchange cut its 2021-22 corn crop estimate to 49 MMT from 51 MMT previously.
  • May corn slumped as low as $7.45 3/4, but remains in the multi-week sideways range. The contract has pivoted around $7.50 since early this month.

Nearby soybeans are 7 to 9 cents lower and nearby soyoil is around 90 points lower, while nearby soymeal is mostly higher.

  • Nearby soybeans fell for the first day in the past four in the wake of disappointing weekly export sales.
  • USDA reported net weekly soybean sales totaling 412,200 MT for 2021-22, down 67% from the previous week and down 70% from the prior four-week average. Sales were under the low end of expectations, which ranged from 500,000 MT to 1.3 MMT for 2021-22. For 2022-23, USDA reported net sales reductions of 13,000 MT for China. Weekly exports totaled 549,200 MT, down 23% from the previous week and down 38% from the prior four-week average.
  • USDA also reported a daily sale of 318,200 MT of soybeans for delivery to “unknown destinations” during the 2021-22 marketing year. That marked the second daily sales announcement to unknown destinations this week, following a 240,000-MT sale Tuesday.
  • May soybeans are trading within Wednesday’s range after rising yesterday to $17.36 1/2, the highest intraday price since the contract high of $17.59 1/4 posted Feb. 24. Initial support comes in at yesterday’s low of $16.91 and the 10-day moving average of $16.80 1/2.

Wheat futures are mixed, with HRW and SRW lower and spring wheat firmer.

  • Nearby SRW futures fell for a third day in a row as the market extended a profit-taking pullback, with additional pressure from lackluster weekly export sales.
  • Net weekly wheat sales totaled 155,700 MT for 2021-22, up 7% from the previous week but down 51% from the prior four-week average. Net sales for 2022-23 totaled 367,300 MT. Sales were expected to range from 100,000 to 600,000 MT for 2021-22 and 100,000 and 300,000 MT for 2022-23.
  • Egypt is in talks with Argentina, India, France and the U.S. for wheat imports but is in no rush to buy at the moment, the supply minister said. Egypt is looking for alternatives to Black Sea grain exports, which have been disrupted by Russia's invasion of Ukraine. Russia and Ukraine accounted for 80% of Egypt’s wheat imports last year.
  • May SRW wheat pushed slightly under the 10- and 20-day moving averages a few cents above $11.00 and dropped to $10.80 1/2, still above this week’s low of $10.61 3/4.

Cattle futures are higher at midmorning, led by the feeder market.

  • Feeder cattle futures reached a two-week high behind a downturn in corn prices.
  • Live cattle futures are higher in a continuation of yesterday’s late strength but trading in narrow ranges. Weaker-than-expected cash trade likely will limit buying interest.
  • Cash cattle trade yesterday was reported in the $137 to $138 range in the Southern Plains, down $1 to $2 from last week’s live steer average and contrary to expectations the market would extend last week’s strength.
  • Wholesale beef extended a two-week climb as retailers prepare for spring grilling. Choice cutout values rose $1.63 yesterday to $261.60, a four-week high. Movement totaled 113 loads.
  • USDA reported net weekly U.S. beef sales totaling 27,500 MT for 2022, a marketing-year high and up 29% from the average for the previous four weeks. Lead buyers included South Korea at 9,000 MT and China at 7,600 MT. Exports totaled 41,800 MT, also a marketing-year high.
  • USDA’s monthly Cattle on Feed Report tomorrow is expected to show record March 1 inventories and a year-over-year increase of about 6.1% in February placements, based on a Reuters survey.
  • June live cattle futures face resistance at the Jan. 5 high of $137.95 and the 40-day moving average around $138.22. Initial support is seen at the 10-day moving average around $135.90.

Lean hog futures are mostly lower in a pullback from yesterday’s jump to contract highs.

  • Lean hog futures are under followthrough pressure from a late slide yesterday amid softening cash fundamentals.
  • The CME lean hog index fell 56 cents to $101.21, its second straight daily decline, but the benchmark remains near a six-month high.
  • Pork carcass cutout values slipped 32 cents yesterday to $106.39 but are still near a two-week high. Movement totaled 299 loads.
  • Net weekly pork sales of 23,200 MT for 2022 were down 39% from the previous week and down 30% from the prior four-week average. Lead buyers included Mexico at 9,200 MT and South Korea at 4,800 MT.
  • USDA’s Cold Storage Report yesterday showed pork stocks climbed a larger-than-normal 45.9 million lbs. during February, ending the month at 480.4 million lbs., up 0.6% from a year earlier.
  • June lean hogs face resistance at yesterday’s contract high at $124.45, followed by psychological resistance at $125.00 and the spring 2014 high at $128.75. Bears may seek to fill a gap on the daily chart created yesterday between $120.225 and $121.20.
 

Latest News

H&P Report negative compared to pre-report expectations
H&P Report negative compared to pre-report expectations

Nearly every category topped the average pre-report estimates.

After the Bell | March 28, 2024
After the Bell | March 28, 2024

After the Bell | March 28, 2024

Pro Farmer's Daily Advice Monitor
Pro Farmer's Daily Advice Monitor

Pro Farmer editors provide daily updates on advice, including if now is a good time to catch up on cash sales.

PF Report Reaction: Bullish USDA data for corn
PF Report Reaction: Bullish USDA data for corn

Corn planting intentions and March 1 stocks came in lower than expected.

Report Snapshot: USDA shows lighter-than-expected corn acres and stocks
Report Snapshot: USDA shows lighter-than-expected corn acres and stocks

USDA reported corn acres of 90.036 million acres for 2024 and March 1 stocks of 8.347 billion bu., both well below trade estimates. Soybean acres were slightly lower than expectations, while stocks were higher.