Market Snapshot | October 2, 2023

Market Snapshot
Market Snapshot
(Pro Farmer)

Corn is mostly 8 to 9 cents higher at midmorning.

  • Corn futures are recapturing a portion of Friday’s losses amid spillover strength from wheat.
  • USDA reported a daily corn sale of 210,000 MT to Mexico for delivery during 2023-24.
  • World Weather Inc. reports dry weather and favorably conditions for crop maturation and harvesting will continue through much of the next two weeks outside of one round of organized rain occurring Tuesday into Thursday.
  • USDA reported weekly export inspections of 625,870 MT (24.6 million b.) during week ended Sept. 28, which were down 84,735 MT from the previous week but within the pre-report range of 500,000 to 850,000 MT.
  • December corn is trading within Friday’s range, though resistance stands at $4.86, while Friday’s low is serving as support.

Soybeans are chopping around unchanged, while December meal futures are around $5.00 lower. December soyoil is around 100 points higher.

  • Soybean futures have come off the overnight lows amid mild corrective strength in soyoil futures, though followthrough meal weakness is limiting buyer interest.
  • USDA reported a daily soybean sale of 132,000 MT to China for delivery during 2023-24.
  • Analysts expect USDA to report August soybean crush at 171.6 million bu., which would be down 7.1% from the previous month and 2.0% below last year. Soyoil stocks are expected to total 1.840 billion pounds.
  • Brazil’s 2023-24 soybean planting efforts reached 5.2% as of last Thursday, the quickest pace ever on that date, according to AgRural.
  • Rain will fall in most summer crop areas of Brazil during the next 10 days, raising soil moisture for improved planting conditions, though rainfall will be erratic in the center-west region, leaving some need for greater rain, notes World Weather.
  • USDA reported export inspections of 663,355 MT (24.4 million bu.) for week ended Sept. 28, which rose 155,725 MT from the previous week and were nearer the top-end of the pre-report range of 350,000 to 750,000 MT.
  • November soybeans are facing resistance at Friday’s close of $12.75, while support continues to serve at $12.63 1/4.

Winter wheat futures are mostly 12 to 18 cents higher, while HRS is 10 to 12 cents higher.

  • SRW wheat futures are posting corrective gains following a drop to three-year lows last week.
  • Ukraine’s new humanitarian corridor allowing vessels carrying Ukrainian grain from Black Sea ports has significantly lowered freight rates, which are likely to fall further, according to the country’s farm minister.
  • Five more cargo ships are heading towards Ukrainian Black Sea ports to pick up grain for export, Deputy Prime Minister Oleksandr Kubrakov said on Sunday.
  • Through the first three months of 2023-24, Ukraine exported 6.68 MMT of grain, down 2.31 MMT (25.7%) from the same period last year. The discontinuation of the Black Sea grain deal forced Ukraine to keep alternative routes, which slowed down shipments.
  • USDA reported weekly inspections of 397,594 MT (14.6 million bu.) for week ended Sept. 28, which were down 88.118 MT from the previous week but were within the pre-report range of 300,000 to 550,000 MT.
  • December SRW futures are trading within Friday’s wide range, with support at Friday’s low of $5.40, while initial resistance stands at $5.71 1/4.  

Live cattle and feeders are sharply higher at midsession.

  • Live cattle futures are higher on corrective strength following Friday’ low-range close, with traders shaking off last week’s lower cash prices and wholesale weakness.
  • Cash cattle traded steady in the Southern Plains and lower in the northern market last week, though traders will have to wait until later this morning to get the official average price.
  • Wholesale beef prices slid Friday, with Choice dropping 73 cents to $300.78, while Select down $1.40 to $276.04. Movement totaled 131 loads for the day.
  • October live cattle are trading within the previous session’s range, with Friday’s high of $186.35 and low of $184.075 serving as resistance and support.

Lean hogs are posting losses, with winter-month contracts sharply lower at midmorning.

  • October lean hogs are edging lower in narrow trade following Friday’s limit-down losses. Heavier selling is being seen in the winter-month contracts.
  • The CME lean hog index is down 56 cents as of Sept. 28, signaling the start of an extended seasonal decline after a brief move higher in September.
  • The pork cutout value rose 31 cents on Friday to $97.23 amid a $7 jump in picnics. Movement totaled 255.9 loads on the day.
  • October lean hogs are hovering below the 100-day moving average of $80.39, while initial support lies at $79.40.
 

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