Market Snapshot | August 4, 2023

Corn is mostly 2 to 3 cents higher at midmorning.

Corn futures are posting gains for the first time nine sessions following a Ukrainian attack on a Russian Black Sea port.
A Ukrainian drone attack on Russia’s Black Sea navy base at Novorossiysk briefly halted operations at the port, which handles 2% of the world’s oil supply and exports grain. However, a source with knowledge of the port’s operations told Reuters oil and grain loadings were still taking place, which resumed normal operations hours after the attack.
Russia stated earlier today it needed actions, not promises, from the U.S. to meet the conditions it has set for a return to the Black Sea grain deal. The comments came after U.S. Secretary of State Antony Blinken on Thursday stated the U.S. would make sure everyone, including Russia, would be able to export food products safely in the event of a resumption of a grain deal.
Northeastern Heilongjiang, known as China’s “great northern granary” is the latest area to suffer the aftermath of Typhoon Doksuri. Heavy downpours and flooding have already impacted farmland in the province and more rain is in the near-term forecast.
December corn reached as high as $5.06 1/2, breaching resistance at $4.96 3/4 and $5.06 1/4. The next area of resistance is at $5.09 1/2, while initial support lies at Thursday’s low of $4.93.

Soybeans are trading mostly 10 to 12 cents higher, while September meal futures are around $4.00 lower. Soyoil is around 100 points higher.

Soybean futures are extending Thursday’s modest gains, though weakness in nearby soymeal futures is limiting upside.
U.S. crop areas are advertised to receive sufficient rain to promote normal crop development during the next 10 days, states World Weather Inc. Today’s forecast for greater rain in the upper Midwest and northeastern Plains should provide some needed relief from dryness.
Malaysian palm oil futures ended higher on Friday, but posted a second straight weekly loss.
November soybeans have pushed above the 200- and 40-day moving averages of $13.34 and $13.35 1/4, respectively, with additional resistance at $13.45 3/4. Meanwhile, support remains at $13.16 3/4.

SRW wheat is mostly 2 to 6 cents higher, while HRW is mostly 6 cents lower. HRS contracts are fractionally to 2 cents lower.

SRW wheat futures are supported by Black Sea tensions, with outside markets lending additional support.
India is considering cutting or abolishing import taxes on wheat, according to Food Secretary Sanjev Chopra, as the world’s second largest producer of the crop struggles to contain price rises. Chopra further stated there is no plan to import wheat from Russia or engage in a government-to-government deal.
France’s ag ministry raised its estimate of the country’s 2023 soft wheat production to 35.59 MMT up 590,000 MT from its initial forecast last month. At this level, France’s wheat production would increase 5.6% from last year.
September SRW futures failed to find sustained buying above resistance at $6.41 1/4, while additional resistance stands at $6.55 3/4. Initial support lies at Thursdays low of $6.26 1/4.

Live cattle and feeders are sharply higher.

Live cattle are posting notable gains amid persisting bullish fundamentals.
Packers showed a little more interest in buying cattle on Thursday, but negotiations remained at a standstill as feedlots had no interest in moving cattle at steady/lower prices. With contract supplies to pull from, it’s unlikely packers will get too aggressive with cash bids, indicating it could another week of light cash trade.
Choice boxed beef fell $1.17 on Thursday to $302.01, while Select rose 84 cents to $278.31, while movement was light at 99 loads.
October live cattle have pushed through resistance at $181.94 and $182.58. Initial support lies at the 20-day moving average of $181.15.

Lean hogs are mostly firmer at midsession.

August lean hogs are slightly lower on followthrough selling efforts as traders sense a seasonal top has formed.
The CME lean hog index is up 6 cents as of Aug.2, meaning it has posted a net 2-cent gain this week.
The pork cutout value jumped $4.00 on Thursday, led by an over $22 gain in primal bellies. Movement totaled 257.9 loads.
October lean hogs are trading within Thursday’s broad range, with support lying at the 40-day moving average of $81.41, while the 20-day moving average of $83.36 serves as initial resistance.

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