Market Snapshot | June 3, 2022

Corn futures are slightly lower at midmorning after trading both sides of unchanged.

• Corn futures are under modest pressure to end the week as traders monitor Midwest weather and prospects for grain shipments from Ukraine. July futures are heading for a fifth straight weekly decline.
• USDA reported a daily sale of 101,600 MT of corn for delivery to “unknown destinations” during the 2021-22 marketing year.
• USDA weekly export numbers were disappointing for new-crop sales. USDA reported net U.S. corn sales for the week ended May 26 of 185,800 MT for 2021-22, up 23% from the previous week but down 52% from the average for the previous four weeks. Net sales for 2022-23 totaled 48,700 MT. Sales for 2021-22 were expected at 125,000 to 400,000 MT for 2021-22 and from 100,000 to 300,000 MT for 2022-23.
• July corn is trading in a narrow range after falling to $7.26 3/4, down from $7.77 1/4 at the end of last week. Initial support comes in at this week’s low of $7.20 1/2.

Soy complex futures are mostly lower, led by declines of about 25 cents in nearby soybeans and nearly $3 in nearby soymeal; soyoil is mixed.

• Nearby soybeans are poised to post the first weekly decline in four weeks on pressure from profit-taking following gains earlier this week. Concerns over planting delays and tight global vegoil supplies are limiting price downside.
• Malaysian palm oil futures ended with a weekly gain of more than 1.5% on expectations for sluggish production and a slow resumption of exports in Indonesia
• Net weekly U.S. soybean sales totaled 111,600 MT for 2021-22, down 60% from the previous week, down 77% from the prior four-week average and a marketing year low. For 2022-23, net sales totaled 284,000 MT, primarily for “unknown destinations,” at 105,000 MT. Sales for 2021-22 were expected to range from 100,000 to 400,000 MT for 2021-22, while sales for 2022-23 were expected from 100,000 to 600,000 MT.
• July soybeans fell as low as $17.01, down from $17.32 1/4 at the end of last week.

Wheat futures are lower, with HRW contracts down around 20 cents.

• Winter wheat futures are heading for a third consecutive weekly decline amid technically-driven selling fueled by chart breakdowns over the past two weeks. Traders continue to monitor prospects for an agreement to allow grain exports from Ukraine.
• Net weekly U.S. wheat sales totaled 700 MT for 2021-22, while net sales for 2022-23 totaled 363,500 MT. Net sales for 2021-22 were expected to range from minus-50,000 to 100,000 MT, while 2022-23 sales of were expected to range from 200,000 to 350,000 MT.
• The condition of France’s soft wheat crop declined for a fifth consecutive week amid persistent dryness. France’s ag ministry rates 67% of the crop as good/excellent, down two percentage points from last week. The crop rating plunged 22 points over the past month amid hot, dry conditions.
• SovEcon raised its forecast for Russia’s wheat exports in 2022-23 by 1.3 MMT to a record 42.3 MMT. Western sanctions imposed on Moscow have not targeted grain exports but have complicated logistics and payments.
• July SRW wheat fell as low as $10.36 1/4 and is down from $11.57 1/2 from the end of last week.

Live cattle and feeder cattle futures are modestly firmer at midmorning.

• Live cattle futures are higher on followthrough from gains in recent sessions and strength in wholesale beef that’s suggested stronger retailer demand.
• August feeder futures rose to $173.85, the highest in over three weeks, with support from weakness in corn.
• Packers moved 131 loads of beef on Thursday, the third consecutive day of strong movement this week, and while Choice cutout values fell 77 cents to $266.65, the average remains near a six-week high. Wholesale beef trade this week signals retailers are actively restocking after Memorial Day, suggesting holiday clearance was strong.
• Net weekly U.S. beef sales totaled 17,900 MT for 2022, down 11% from the previous week and down 17% from the prior four-week average. Prominent buyers included Japan (6,000 MT, including decreases of 600 MT), China (4,800 MT, including decreases of 300 MT) and South Korea (2,700 MT, including decreases of 400 MT).
• August live cattle rose as high as $134.40, up from $132.40 at the end of last week.

Hog futures are mostly lower, with summer contracts leading declines.

• Hog futures generated little followthough buying from firm gains the past two sessions, leading to corrective selling ahead of the weekend.
• The CME lean hog index is up 12 cents to $105.03, the benchmark’s 10th gain in 11 days and the highest level since August. Futures’ premiums to the index may be muting buyer interest, but the cash market may continue to firm seasonally as slaughter numbers tighten into summer.
• Net weekly U.S. pork sales totaled 31,900 MT for 2022, down 13% from the previous week but up 15% from the prior four-week average.
• July lean hogs fell as low as $111.10, down from $111.725 at the end of last week.