Market Snapshot | December 22, 2022

Corn futures are under light pressure in narrow-range, pre-holiday trade after fading from an overnight climb to three-week highs as soft exports continue to limit buying interest.
USDA reported net U.S. corn sales of 636,800 MT for 2022-23 during the week ended Dec. 15, down from 958,900 MT the previous week and at the low end of trade expectations between 625,000 to 900,000 MT.
A cargo insurance facility providing coverage for shipments via Ukraine’s grain export corridor will continue next year with no rate increases, an underwriter with Lloyd’s of London insurer Ascot said.
March corn overnight rose as high as $6.64 3/4, the contract’s highest intraday price since $6.69 on Dec. 1, before fading after hitting resistance at the 40-day moving average. Initial support comes in at the 20-day moving average around $6.53 3/4.

Soybeans are 8 to 10 cents lower, nearby soymeal is more than $3 lower and nearby soyoil is 60 to 80 points lower.

Soybean futures extended overnight weakness after finding little followthrough buying from Wednesday’s gains. Prospects for rain in South America is weighing on prices.
Argentina’s rainfall will be greatest Thursday into Sunday morning, bringing temporary relief from dryness is likely in nearly all areas, World Weather Inc. said. Drier weather is expected to return next week and an erratic rainfall pattern is expected through the end of the month.
In Brazil, timely rainfall is expected in most of the nation’s major production regions the next two weeks, World Weather said. Some net drying is possible in the far south and parts of Paraguay through the weekend, but timely rain will resume next week.
USDA reported net weekly U.S. soybean sales of 736,000 MT, down from 2.943 MMT the previous week and below trade expectations ranging from 800,000 MT to 1.25 MMT. Top buyers included China at 550,700 MT, including 252,000 MT switched from “unknown destinations” and decreases of 9,700 MT.
Indonesia’s 2022 palm oil exports are estimated at 34.67 MMT, down from last year’s 37.78 MMT, partly due to a temporary export stoppage in April, the chief executive of its palm oil fund said today.
March soybeans briefly dropped under 20-day moving average support at $14.69 1/4 and fell to $14.68 before rebounding slightly. Further support comes in at this week’s low of $14.62 1/4.

Wheat futures are mixed, with SRW and spring wheat down 1 to 4 cents and HRW contracts up 6 to 8 cents.

HRW futures rose to the highest levels in over a week amid concerns extreme cold will damage crops in the Central and Southern Plains. SRW wheat faded to losses after posting three-week highs overnight.
Temperatures fell into the negative single digits in much of HRW wheat country in the Central Plains overnight. The cold outbreak is expected to continue into the weekend, “raising the potential for unprotected wheat to be vulnerable to some damage and possibly some winterkill,” World Weather said.
Net weekly U.S. wheat sales totaled 334,200 MT, down from 469,000 MT the previous week and within trade expectations ranging from 200,000 to 500,000 MT.
Japan purchased 144,441 MT of milling wheat in its weekly tender, including 83,881 MT from the U.S. and 60,560 MT from Canada. Iraq purchased 150,000 MT of milling wheat, including 100,000 MT from Australia and 50,000 MT from the United State. Taiwan purchased 56,000 MT of U.S. milling wheat.
March SRW wheat overnight reached $7.77, the contract’s highest intraday price since $7.83 on Dec. 2, before fading.

Live cattle futures are down slightly after generating little followthrough buying from Wednesday’s rally to contract highs. Expectations for longer-term strength in the cash market continue to underpin the market.
Little cash trade has been reported so far this week even with extreme cold and blizzard-like conditions hitting the Plains. If packers don’t get many cattle bought it could increase their demand next week, though they will likely try to stretch supplies until after the holidays.
Choice beef cutout values fell 19 cents Wednesday to $264.86, ending a string of four straight daily gains. Movement was strong at 118 loads.
USDA reported net weekly beef sales of 4,500 MT for 2022, down from 10,900 MT the previous week. Japan led buyers at 3,500 MT, including decreases of 400 MT. Net sales of 7,200 MT for 2023 were led by Japan (2,600 MT) and China (2,000 MT).
USDA will release its monthly Cold Storage Report detailing frozen meat stocks at the end of November after today’s close. The five-year average is a 3.5-million-lb. increase in beef stocks during the month.
February live cattle is trading within the previous session’s range after prices reached $157.975 Wednesday, topping the previous contract high posted in late October.

Hog futures are slightly higher.

Lean hog futures touched the highest levels in over two weeks behind followthrough technical strength from Wednesday’s rally and expectations the cash market is near a bottom.
The CME lean hog index is down 29 cents to $80.57 (as of Dec. 20), an 11-month low. Despite a drop of nearly $42 from this year’s high in early August, the index is still $7.55 above year-ago, though a seasonal low had already been forged by now in 2021.
Wholesale pork remained under pressure, with pork cutout values dropping $1.01 to $82.45, the lowest daily average since Jan. 11.
USDA reported net weekly U.S. pork sales of 58,700 MT for 2022, quadrupling the previous week’s sales of 14,400 MT. Lead buyers included Mexico (33,400 MT, including decreases of 300 MT) and Japan (9,900 MT, including decreases of 700 MT). Net weekly pork sales for 2023 totaled 16,100 MT, primarily for China (4,800 MT), South Korea (3,200 MT), Mexico (2,500 MT), Japan (2,200 MT) and Canada (1,200 MT).
USDA will release its monthly Cold Storage Report detailing frozen meat stocks at the end of November after today’s close. The five-year average is a 52.7-million-lb. decline in pork stocks during the month.
February lean hogs reached $88.975, the contract’s highest intraday price since $90.00 on Dec. 6.

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