Market Snapshot | June 12, 2023

Corn is 15 to 17 cents higher at midmorning.

• Corn futures are notably higher on persisting weather concerns, despite largely unsupportive outside markets.
• World Weather Inc. reports western U.S. Midwest crop production areas will be dry this week, resulting in greater crop stress for parts of Iowa, Illinois and the upper Midwest that missed rain during the weekend and were already dry.
• USDA reported corn export inspections of 1,169,134 MT (46.0 million bu.), down 37,674 MT from the previous week, but near the top-end of the pre-report range of 750,000 MT to 1.3 MMT.
• AgRural reported Brazil’s safrinha corn harvest was 2.2% completed as of last Thursday, behind last year’s pace of 6.6% on the same data. The firm notes safrinha corn is developing favorably, though attention will remain on temps the second half of the month as a cooldown is expected.
• July corn surged above last week’s high but the contract is being restricted by the 100-day moving average at $6.22 3/4. Support lies at Friday’s close of $6.04 1/4.

July soybeans are around 2 cents lower, while new-crop edges 7 to 8 cents higher. July meal futures are around $2.00 higher and July soyoil is marginally higher.

• Aside from the lead July contract, soybeans are being supported by weather and spillover from the corn market.
• Frost and a few freezes occurred this morning in portions of Wisconsin, possibly impacting crops in a negative manner, notes World Weather.
• USDA reported soybean export inspections of 140,197 MT (5.2 million bu.), which were down 82,126 MT from the previous week, missing the pre-report range of 175,000 to 400,000 MT.
• Malaysian palm oil futures fell to a near two-and-a-half-year low amid low demand and strong supply. Early cargo surveyors showed that exports of Malaysian palm oil products fell 16.7% to 17.6% from the previous month in the first 10 days of June.
• July soybeans have reached as high as $13.92 3/4 and traded above the 40-day moving average for the first time since April 20. Initial support lies at $13.76 3/4.

SRW wheat is 5 to 7 cents higher, while HRW is around a penny lower. HRS wheat is mostly 4 to 6 cents higher.

• SRW wheat futures are posting moderate followthrough gains on support from corn.
• U.S. HRW wheat production areas will experience a good mix of rain and sunshine during the next 10 days, according to World Weather. That will help accelerate harvest activity.
• USDA reported wheat export inspections of 246,559 MT (9.1 million bu.), which were down 57,841 MT from the previous week and just above the pre-report range of 200,000 and 425,000 MT.
• India has imposed a limit on the amount of wheat stocks traders can hold to bring down domestic prices. New Delhi will also provide 1.5 MMT of wheat to bulk consumers such as flour millers, as part of efforts to lower prices.
• July SRW wheat is trading mostly within the lower range of Friday’s session, with the 20-day moving average of $6.27 1/4 providing support, while Friday’s high of $6.35 is serving up resistance.

Live cattle are posting slight to moderate gains, while feeders are modestly lower.

• Live cattle are moderately higher but are trading inside Friday’s range.
• Cash cattle prices notched another round of record prices last week, with futures trading at notable discounts, indicating traders are cautious.
• Wholesale beef continued their recent rally on Friday, with Choice up $4.20 and a $1.61 increase in Select, though movement totaled only 81 loads, signaling retailers may be becoming more selective buyers at these price levels.
• August live cattle are trading within Friday’s range, pivoting mostly around the 10-day moving average of $171.87. Initial resistance stands at $173.22, while support remains at $170.72.

Lean hogs are sharply higher in all but the lead June contract at mid-morning.

• Deferred lean hogs are notching strong followthrough gains amid a persisting seasonal price recovery in the cash market.
• The CME lean hog index is up another 48 cents as of June 8, extending its seasonal rally.
• The pork cutout value rose $2.71 on Friday amid strength in all cuts, while movement totaled 295.7 loads.
• August lean hogs have reached as high as $87.975, the highest level since May 17. Support is at Friday’s close of $83.95.