Market Snapshot | April 6, 2023

Corn is 4 to 9 cents lower, with old-crop posting heavier losses.  

• Corn futures are notably lower on thin volume ahead of the holiday weekend and improved forecasts for the Midwest.
• World Weather Inc. states the two-week forecast for the Midwest is a little drier overall than what was advertised Wednesday and conditions for fieldwork will steadily improve with quick improvements in much of the region next week when temperatures warm.
• USDA reported corn export sales of 1.247 MMT during week ended March 30, which was up 20% from the previous week but down 26% from the four-week average. Net sales were within pre-report estimates ranging from 800,000 MT to 1.5 MMT.
• May corn dropped below Wednesday’s low, with initial support at $6.39 1/2. Initial resistance is at near the 50-day moving average of $6.52 1/2.

Soybeans are 10 to 20-plus cents lower, with old-crop posting heavier losses. May meal futures are more than $2.00 lower and May soyoil is around 80 points lower.

• Front-month soybeans have dropped below $15.00, extending losses for the third straight session as export sales continue to wane amid fresh South American supplies.
• USDA reported soybean export sales of 155,300 MT for week ended March 30, which was down 55% from the previous week and 42% from the four-week average. Total net sales missed the pre-report range of 200,000 and 600,000 MT.
• Malaysian palm oil futures rose overnight, recouping previous session losses amid expectations of a sharp decline in March stockpiles.
• May soybeans have fallen as low as $14.83 1/4, while support lies at the 20-day moving average of $14.80 1/2. Initial resistance stands at the psychological $15.00 mark.

SRW wheat is 3 to 4 cents lower, while HRW is 7 to 9 cents higher. HRS wheat is 4 to 6 cents higher.

• SRW wheat is posting moderate losses amid spillover from corn and soybeans, while HRW pushes higher on expectations of persisting dry conditions.  
• Western portions of the U.S. hard red winter wheat region will stay drier than usual through mid-month, according to World Weather Inc.
• USDA reported wheat export sales of 193,600 MT for week ended March 30, which was up noticeably from the previous week but down 5% from the four-week average. Net sales were near the middle of the pre-report range of 100,000 to 350,000 MT.
• May SRW wheat is chopping around yesterday’s lows, with initial support remaining at $6.73 1/2. Initial resistance is near $6.83 1/2.

Live cattle and feeders are posting strong gains at midsession.

• Nearby live cattle gapped higher at the open on strong cash fundamentals.
• Cash cattle trade began Wednesday around $170 in the Southern Plains and as high as $178 in the northern market, which was up sharply on the week in both regions.
• Wholesale beef prices rose on Wednesday with a 68-cent gain in Choice boxes to $288.62 and a 21-cent increase in Select to $278.16. Movement totaled 102 loads.
• USDA reported weekly net beef export sales of 13,500 MT, which was up 20% from the previous week and 1% above the four-week average.
• June live cattle gapped sharply higher to begin the session, notching a new contract high of $163.225. Initial support lies at former resistance around $161.86.

Lean hogs are firmer at midsession.

• Lean hogs are firmer amid corrective buying, though weakening cash fundamentals are limited buyer interest.  
• The CME lean hog index continued its decline for the 13^th straight session, with another 76-cent drop to $73.91 as of April 4.
• The pork cutout value fell an additional 29 cents on Wednesday to $76.56, with an over $9 drop in bellies leading the loss. Movement totaled 305 loads for the day.
• USDA reported weekly pork export sales of 53,200 MT for 2023, a marketing-year high. Net sales surged 75% from the previous week and 69% from the four-week average. China was the top buyer at 20,200 MT.
• June lean hogs extended to a new contract low of $87.05, dipping below initial support of $87.40, before rebounding. Initial resistance persists at $89.35.