Market Snapshot | April 19, 2022

Corn futures are lower at midmorning, led by declines of 4 to 7 cents old-crop contracts.

• Corn futures extended overnight losses after coming under corrective profit-taking pressure. New-crop contracts are holding up better as U.S. planting progress lags.
• Wet conditions will continue to hamper planting progress. USDA reported 4% of the U.S. corn crop was planted as of April 17, up from 2% a week earlier but behind the 6% average the previous five years. The crop was expected to be about 5% planted.
• The Midwest will receive frequent precipitation over the next week along with temperatures that will often be cool, keeping fieldwork to a minimum in most areas, World Weather Inc. said today. “Most of the precipitation should not be heavy enough to cause lasting delays to fieldwork if warmer and drier weather were to follow,” the forecaster said. The April 27-May 3 period “will be drier overall and planting should increase.”
• July corn reached a contract high at $8.14 overnight before coming under pressure, while December futures hit $7.55, a contract high for the seventh straight session.
• May corn futures overnight hit $8.19 3/4, the highest intraday price for a front-month contract since August 2012. Further strength may have bulls targeting the all-time high at $8.43 3/4.

Soybean futures are up 3 to 5 cents after erasing early declines, while nearby soymeal is up over $3; nearby soyoil is down around 60 points.

• Nearby soybeans rebounded at midmorning after slipping overnight as crude oil futures tumbled and profit-taking pressure spilled over from wheat and corn.
• USDA reported a daily sale of 123,650 MT of soybeans for delivery to “unknown destinations” during the 2021-22 marketing year. That followed a USDA announcement last Friday of soybean sales to China totaling 661,000 MT (121,000 MT for 2021-22 and 540,000 MT for 2022-23), along with 177,000 MT to unknown destinations for 2021-22.
• USDA reported 1% of the U.S. crop was planted as of April 17, slower than the 2% five-year average.
• July soybeans reached a three-week high at $17.05 3/4 overnight before fading. Initial support comes in around yesterday’s low at $16.69, followed by the 10-day moving average around $16.53.

Wheat futures are lower, led by declines of 10 to 12 cents in SRW contracts.

• Winter wheat futures fell under profit-taking pressure even as USDA’s crop condition ratings declined, contrary to expectations for slight improvement.
• Winter wheat conditions deteriorated last week as drought persisted in the Plains. USDA rated 30% of U.S. the crop in “good” to “excellent,” down two percentage points from a week ago, below an average of analyst expectations and the lowest for this time of year since 1996.
• When USDA’s weekly crop condition ratings are plugged into the weighted Pro Farmer Crop Condition Index (0 to 500-point scale, with 500 being perfect), the HRW crop declined 6.3 points to 271.5, which is 59.4 points below the five-year average for mid-April.
• July SRW wheat overnight nudged above yesterday’s high to reach a six-week high $11.43 1/2 but found little followthrough buying and faded under corrective selling. Initial support at yesterday’s low of $11.09 1/4 is backed by the 20-day moving average at $10.84 1/2.
• July HRW wheat reached a six-week high at $12.02 1/4 overnight before fading.

Cattle futures are higher at midmorning, led by feeder contracts.

• Live cattle are firmer but trading within yesterday’s range as the market waits for cash trade to establish.
• Weaker corn prices are supporting feeder cattle, though nearby contracts are still technically weak after gapping lower and ending with sharp losses yesterday.
• Cash cattle averaged $141.02 last week, up $2.20 from the previous week. While there are some ideas prices will strengthen further, USDA’s Cattle on Feed report Friday may lead to delayed cash activity this week.
• Wholesale beef prices have eroded slightly over the past week after reaching two-month highs earlier in April. Choice cutout values fell $1.54 yesterday to $271.08, though movement was relatively firm at 107 loads.
• China will auction 3,000 lbs. of frozen beef and mutton from state reserves on Thursday.
• June live cattle face initial resistance at the 50-day moving average around $137.20 and yesterday’s high at $137.475. Initial support is seen around yesterday’s low at $135.375, followed by the 10-day moving average around $135.20.

Hog futures are higher, led by summer contracts.

• Lean hog futures rose a third consecutive session and neared a three-week high on strengthening cash fundamentals.
• The CME lean hog index is up another 35 cents, the fourth straight daily gain, to $100.32. June futures are still trading around $22 above the index.
• Pork cutout values fell 72 cents yesterday to $109.49, down from a seven-week high reached Friday. Movement totaled 295 loads.
• June lean hogs reached $123.075, the highest intraday price since the contact high of $127.325 posted March 31. Initial support comes in around the 20-day moving average at $119.80.