Market Snapshot | September 7, 2023

Corn is unchanged to fractionally lower midmorning.

• Corn futures have dropped from earlier highs on fading SRW wheat strength.
• Due to Monday’s government holiday, export sales data for the week ended Aug. 31 will be published Friday morning.
• Ethanol production in week ended Sept. 1, rose 5,000 barrels per day (bpd) from the previous week to 1.012 million bpd. That was 2.3% above the corresponding week last year. Ethanol stocks increased 12,000 barrels to 21.62 million barrels.
• Iran purchased an undisclosed amount of Brazilian corn from a tender for up to 180,000 MT.
• December corn futures have edged below the 10-day moving average of $4.86 1/4, with initial support lying at $4.82 1/2, while initial resistance stands at $4.89 1/2.

Soybeans are mostly 10 to 11 cents lower, while December meal futures are around $2.00 lower. December soyoil is over 140 points lower.

• Soybean futures are pressing lower for the third straight session amid waning export demand optimism.
• China imported 9.36 MMT of soybeans in August, according to customs data, jumping 30.5% from a year ago amid large purchases of Brazilian supplies. Through the first eight months of this year, China imported 71.65 MMT of soybeans, up 17.9% from the same period last year. Exports are expected to wane in the coming months, as the U.S. new-crop shipping season begins.
• Malaysian palm oil futures closed lower for a fourth straight session ahead of August supply-demand data from the Malaysian Palm Oil Board.
• November soybeans are consolidating between the 40-day moving average of $13.61 1/4, which is serving up support, and initial resistance at $13.84.

SRW wheat futures are mostly a penny to 2 cents lower, while HRW futures are 4 to 6 cents lower. HRS contracts are mostly 2 to 4 cents lower.

• The wheat complex is facing mild corrective selling, led by HRW futures amid continued strength in the U.S. dollar and forecasts of increased export channels for Ukrainian grain.
• Russian drone strikes overnight damaged port infrastructure, a grain silo and administrative buildings in the Izmail district of Ukraine’s southern Odesa region, according to regional governor Oleh Kiper.
• Ukraine has started exporting grain via Croatian seaports, aiming to broaden its export routes while its Black Sea ports are blocked, according to a senior Ukrainian official.
• Ukrainian grain exports through the Romanian Black Sea port of Constanta could increase to 35 MMT per season if certain changes are made to operations, according to the head of the Ukrainian grain trader’s union. Constanta has become the main deep-water port for Ukrainian grain since mid-July.
• In its monthly update of the Agricultural Market Information System (AMIS), the United Nations has revised its global wheat production estimate for the 2023-24 marketing year because of drought damage in Canada and the EU and heavy rains in China. The new figure was set at 781.1 MMT, down 0.2% from 783.3 MMT forecast in July.
• December SRW futures tried to push above the 10-day moving average of $6.09 1/2, with additional resistance at $6.16 1/2. Initial support lies at $6.00 1/4.

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

• Live cattle are extending Wednesday’s upside breakout after a period of mostly sideways trade. 
• Though cash trade remains limited, the average price thus far is $183.78, up $1.28 from last week.
• Wholesale beef prices slid on Wednesday, with Choice falling $1.91 to $313.57, while Select dropped $1.93 to $287.61. However, movement improved to 152 loads for the day.
• October live cattle are extending Wednesday’s rally, with initial resistance at $183.88, while initial support is at the 10-day moving average of $181.16.

Lean hogs are posting moderate to strong gains at midsession.

• Nearby lean hogs have recaptured losses from the previous session, with solid technical support at the 40-day moving average.
• The CME lean hog index is down another 55 cents to $86.01, extending the seasonal price drop, though that’s the smallest daily decline in three weeks.
• The pork cutout value fell 54 cents to $98.33 on Wednesday, while movement totaled 284.9 loads.
• October lean hogs are trading within Wednesday’s range. Initial resistance is at $83.475, with the previous session’s high of $84.125 serving as stronger resistance. Meanwhile, support lies at the 40- and 20-day moving averages at $82.31 and $82.22, respectively.