Market Snapshot | July 2023

Corn is mostly 6 to 7 cents lower at midmorning.

• Corn futures continue to consolidate in a sideways pattern, with supportive outside markets failing to spur buyer interest.
• USDA reported a daily export sale of 180,000 MT of corn for delivery to Mexico — 45,000 MT for 2022-23 and 135,000 MT for 2023-24.
• USDA reported corn export sales of 251,700 MT for week ended June 29, up 79% from the previous week and 62% above the four-week average. Net new crop sales of 418,000 MT were also reported. Traders expected sales to range between 0 and 500,000 MT for both 2022-23 and 2023-24.
• Mild temps through most of the next 10 days and regular rounds of showers into July 15 will allow corn pollination and other crop development to occur in a mostly favorable environment through the next two weeks, according to World Weather Inc.
• December corn is trading narrowly. Initial support lies at $4.96 1/2, with additional support at $4.86 1/2. Initial resistance continues to serve at $5.12 1/4.

Soybeans are mostly 13 to 16 cents lower, while meal futures are around $5.00 lower. Soyoil is posting marginal declines.

• Soybeans are posting declines for the third straight session, with notable losses in meal futures pressuring the complex.
• Northern U.S. production areas are still drier than usual, as is a large part of Missouri, where significant rain is needed, according to World Weather.
• USDA reported weekly soybean export sales of 187,800 MT for 2022-23, which were down 17% from the previous week and 45% below the four-week average. Net sales of 592,800 MT were reported for 2023-24. Traders expected sales 100,000 to 350,000 MT for 2022-23 and 0 to 400,000 MT for 2023-24.
• November soybeans have turned below initial support of $13.26, while the 10-day moving average of $13.17 1/2 is serving as additional support. Resistance stands at $13.44 1/4.

SRW wheat is fractionally to a penny lower in most contracts, while HRW wheat is 7 to 9 cents lower. HRS wheat is narrowly mixed.

• SRW wheat has rebounded from earlier lows amid a sharply weaker U.S. dollar, while HRW wheat inches lower amid improving forecasts.
• Less frequent and less significant rain is expected to evolve next week across HRW wheat areas and temps will trend warmer, notes World Weather. The change may help prevent a serious wheat quality decline, but there is still some risk of damage.
• USDA reported net week wheat export sales of 405,800 MT for 2023-24, which topped the pre-report range of 50,000 to 350,000 MT.
• September SRW wheat futures are pivoting mostly around the 40-day moving average of $6.56, while support lies at $6.48 1/2. Initial resistance stands at $6.70 3/4.

Live cattle are marking slight- to moderate-gains, while feeders are sharply higher.

• Live cattle have seen a return of buying following three days of corrective losses.
• Cash cattle trade got underway around $178 in the Southern Plains on Thursday, steady to $2 lower than the bulk of trade in that region last week. Feedlots in the northern market where supplies are tighter resisted the weaker prices.
• Wholesale beef prices fell on Thursday with a $2.91 drop in Choice to $319.87, while Select fell $2.72 to $289.97, slightly narrowing the Choice/Select spread to $29.90. Movement totaled 126 loads for the day.
• USDA reported net beef sales of 17,000 MT for 2023, up 41% from the previous week and 33% above the four-week average.
• August live cattle have edged above initial resistance of $175.29, with next resistance standing at $176.00. Initial support lies at 10-day moving average of $174.12.

Lean hogs are mixed, with far-deferred contracts posting mild strength.

• July lean hogs are lower amid profit-taking following steady gains since the end of May.
• The CME lean hog index surged $1.39 to $96.07 as of July 5.
• The pork cutout value dropped $3.69 to $105.00 on Thursday, led lower by an over $11.50 drop in primal bellies. Movement totaled 311 loads for the day.
• USDA reported net pork sales of 26,000 MT for 2023, down 3% from both the previous week and four-week average.
• August lean hogs gapped lower at the open, and are hovering above initial support of $95.68, while additional support lies at $94.24. Thursday’s close of $97.125 is serving as initial resistance.