Market Snapshot | September 25, 2023

Corn is 2 to 3 cents lower at midmorning.

Corn futures are facing mild pressure from soybean futures, weaker crude oil and a stronger U.S. dollar.
USDA reported a daily sale of 1,661,160 MT of corn for delivery to Mexico. Of the total, 1,049,771 MT is for delivery in 2023-24 and 611,389 MT for delivery during 2024-25.
AgRural reported farmers in center-south Brazil have planted 25% of the area expected for their first 2024 corn crop, up from 21% a week ago, but below 28% complete last year.
USDA report export inspections of 660,811 MT (26.0 million bu.) for week ended Sept. 21, which were down 15,512 MT from last week’s tally, but within the pre-report range of 400,000 to 800,000 MT.
World Weather Inc. reports Argentina weather will continue to be a little tenuous for early corn planting, though there is still time for further improvement.
December corn continues to consolidate sideways between $4.80 3/4 and $4.72 1/4.

Soybeans are mostly 2 to 3 cents lower, while December meal futures are over $3.50 higher. December soyoil is over 160 points lower.

Soybeans are edging lower, with notable weakness in soyoil casting a shadow over the complex, while gains in meal futures are limiting losses.
For week ended Sept. 21, USDA report export inspections of 481,638 MT (17.7 million bu.) which rose 51,867 MT from the previous week, and were within the pre-report range of 375,000 to 775,000 MT.
Brazil’s 2023-24 soybean plantings were 1.9% complete as of last Thursday, above the 1.5% seen during the same period a year ago, according AgRural.
Some concern remains for summer crops in Mato Grosso where erratic and lighter than usual rain may occur for a while longer this spring, according to World Weather, though greater rain next week in center south crop areas will prove to helpful for spring planting.
Malaysian palm oil futures closed higher for the second straight session overnight, tracking gains in rival Dalian oils with additional support from a weaker ringgit.
November soybeans have fallen below initial support at $12.91 1/2 and $12.86 3/4, with $12.81 serving as the next area of support. Meanwhile, resistance is serving at $13.02.

SRW wheat futures are 2 to 3 cents higher, while HRW and HRS contracts are a penny to 6 cents lower.

Overnight gains in SRW wheat are being crimped by notable U.S. dollar strength.
USDA report export inspections of 451,004 MT (16.6 million bu.), which were up 28,365 MT from the previous week and near the upper pre-report range of 300,000 to 500,000 MT.
An overnight Russian airstrike on the southern Ukrainian region of Odesa caused “significant damage” to port infrastructure and destroyed some grain storage facilities, according to Ukrainian officials. The attack was the latest in a series of missile and drone strikes which Kyiv says are intended to prevent Ukraine from shipping its agriculture exports to the world.
Ukrainian grain exports over Sept. 1-24 totaled 1.57 MMT, down sharply from the 3.21 MMT during the same period a year ago.
The Indian government could sell more wheat on the open market to control prices that have reached their highest in nearly eight months, the country’s food secretary said. The government could sell more wheat to bulk consumers, such as flour millers and biscuit makers to stabilize prices.
December SRW futures have tested the 10-day moving average of $5.88 1/4, which has persistently served as resistance since late July, but have retreated slightly and are holding just below resistance at $5.83 3/4.

Live cattle are narrowly mixed, while feeders post choppy losses.

Live cattle are facing mild weakness, though nearby futures continue to consolidate around last week’s all-time high.
Last week’s cash average is expected to come in higher on the week.
Friday’s Cattle on Feed Report showed there were 11.094 million head in large feedlots as of Sept. 1, down 248,000 head (2.2%) from year-ago. Placements fell 5.1%, while marketings dropped 6.0% from year-ago levels during August.
Wholesale beef prices rose Friday, with Choice gaining $1.40 to $303.33, while Select jumped $1.43 to $280.43, though movement was light at 98 loads.
October live cattle are trading within Friday’s upper range, with resistance serving at last week’s high of $187.45, while support lies at the 10-day moving average of $185.71.

Lean hogs are mixed at midsession, with moderate strength in deferred contracts.

Hog futures are mixed, with deferred contracts posting corrective gains following last week’s selling efforts.
The CME lean hog index is down 9 cents to $87.08 as of Sept. 21, as the cash market continues to consolidate in the $87.00 range.
The pork cutout value fell $1.49 on Friday to $97.26 after extending its pullback after briefly pushing above $100.00 early last week. Movement totaled 281.5 loads for the day.
October lean hogs are being limited by the 40-day moving average of $82.24, while support continues to serve at $80.73.

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