Market Snapshot | June 26, 2023

Corn is mixed with old-crop firmer and new-crop pivoting around unchanged.

• Corn futures are pivoting around last Friday’s closing level.
• Weekend rain brought relief to the eastern Dakotas, portions of Minnesota, northern Iowa and far northern Illinois, northwestern Indiana and parts of both Michigan and Wisconsin, but most other areas failed to get significant moisture, notes World Weather Inc.
• World Weather states rain during the next two weeks is likely to be below normal in many areas and will not see net increases in soil moisture, but enough rain is expected to support corn pollination and prevent further significant deterioration of conditions in much of the region.
• Weekly corn export inspections totaled 542,727 MT (21.4 million bu.), down from 830,999 MT last week and 877,310 MT last year.
• Brazilian farmers have harvested 9.3% of their second corn crop in the center-south region as of last Thursday, according to AgRural. That was up 4.6 percentage points from the previous week, but still behind last year’s pace of 20.3% for the date.
• December corn fell below the 10- and 200-day moving averages around $5.84 but have rebounded from earlier lows. Resistance stands at $6.08 1/2.

Soybeans 5 to 18 cents higher, with old-crop marking stronger gains. July meal futures are nearly $1.00 higher, while July soyoil is up about 80 points.

• July soybeans have reached the highest level since early March, but they have dropped from those earlier highs.  
• Weekly soybean export inspections totaled 141,158 MT (5.2 million bu.), down from 179,548 MT the previous week and 185,184 MT last year.
• Malysian palm oil futures closed higher on Monday after sliding during the midday break on higher rival oils.
• Indonesia plans to raise its mandatory palm-oil based biodiesel blending to 40% in the next few years, but for now will keep it unchanged at 35%, according to the energy minister said earlier today.
• July soybeans pushed above resistance at $15.07 1/4 and $15.20, with additional resistance at $15.38 1/2. Support remains at $14.76.

SRW wheat is mostly 1 to 3 cents lower, while HRW wheat is 2 to 4 cents higher. HRS wheat is a penny to 3 cents higher.

• Wheat futures took early support from looming global supply concerns, though weak export inspections data pressured prices.
• Russia pulled back from the brink of a crisis after a deal was reached to end an insurrection by thousands of Wagner fighters who were advancing toward Moscow. The abrupt about-face followed a rare, remarkable challenge to the Kremlin that threatened to plunge the country into chaos.
• Wheat maturation and harvest conditions were good in the central U.S., including HRW wheat areas and soft wheat in the Midwest, according to World Weather.
• Weekly wheat export inspections totaled 203,724 MT (7.5 million bu.), down from 235,175 MT the previous week and 237,820 MT last year.
• July SRW wheat has reached as high as $7.56 3/4, the highest level since Feb. 24, turning above resistance at $7.41 and $7.48 3/4, with additional resistance at $7.60. Support lies at $7.29 3/4.

Live cattle and feeders are lower at midmorning.

• Live cattle are mostly lower, though seller interest should remain limited by the steep discounts futures hold to the cash market.
• Cash cattle prices weakened last week and will likely face pressure again this week as packers have a holiday-shortened slaughter schedule next week and fresh contract supplies coming with the flip of the calendar.
• Wholesale beef prices dropped on Friday, with Choice down 46 cents to $334.01 and Select $3.84 lower to $299.96. The Choice/Select spread widened $34.05. Movement totaled 78 loads.  
• August live cattle gapped lower at the open and traded below support around $170.28, with further support lying around $169.64. Friday’s low of $170.35 is serving as initial resistance.

Lean hogs are posting moderate- to strong gains at midsession.  

• July lean hogs are notching solid gains with firming cash fundamentals underpinning the market.
• The CME lean hog index 94 cents $91.41 as of June 22, the highest since early November last year.
• The pork cutout value firmed 86 cents on Friday to $97.36. Movement totaled 197.1 loads.
• August lean hogs gapped higher and breached resistance at $91.41, with additional resistance at $93.14. The 10-day moving average near $90.28 is serving as support.