Market Snapshot | October 9, 2023

Corn is mostly 3 to 4 cents lower at midmorning.

Corn futures have given up overnight gains tied to the attack in Israel during daytime trade.
USDA will release weekly export inspection data on Tuesday, due to the observance of today’s government holiday.
Brazil’s 2023-24 first corn plantings in center-south are estimated to be 37% complete as of last Thursday, compared to 39% a year-ago, according to AgRural.
Argentina still needs significant rainfall to support early corn planting and future soybean planting, though World Weather Inc. reports it may be 10 days before beneficial moisture falls.
Russia’s IKAR agriculture consultancy raised its forecasts for Russia’s grain crop this year to 141.2 MMT, up from 140 MMT, due to a significant improvement in the corn harvest. The firm raised its 2023-24 grain export forecast by 500,000 MT to 64.5 MMT.
December corn continues to trade narrowly sideways with notable resistance around the $5.00 area, while support lies around $4.89 1/4.

Soybeans are mostly 2 to 4 cents lower, while December meal futures are around $2.50 higher. December soyoil is about 70 points lower.

Soybean futures have come well off their overnight highs and continue to trade sideways ahead of USDA’s October crop reports on Thursday.
AgRural estimates Brazil’s 2023-24 soybean planting efforts had reached 10.1% as of last Thursday, compared to 9.6% during the same time last year.
World Weather Inc. notes Brazil weather will be a little too wet in the south at times causing some delay in fieldwork and an erratic rainfall pattern in center-west remains of “some” concern. Heavy rain in the south at times was noted during thew weekend, which will limit field access for a while even without new rainfall.
Malaysian palm oil futures rose overnight after losing 4.4% last week as hopes grew that biodiesel demand would increase following a rally in crude oil prices.
November soybeans are trading in a consolidation pattern mostly between the 10-day moving average of $12.81 1/4 and support at $12.57 1/4.

SRW wheat futures are mostly 3 to 5 cents higher, while HRW is around 7 to 9 cents higher HRS contracts are 8 to 10 cents higher.

The wheat complex higher amid heightened geopolitical tensions and looming global production curbs.
U.S. HRW wheat areas and the Pacific Northwest will need greater rain for improved crop establishment, while winter wheat plantings in the Midwest and northwestern Plains will continue to advance well with favorable emergence over time.
Argentina’s core agricultural farmland could suffer “massive losses” in wheat yields due to another drought, the Rosaria Grain Exchange said, though it has not yet changed its forecast for the country’s production.
December SRW futures failed to find fresh buying above last week’s highs. , bound by the 20-day moving average of $5.80 1/4, while support serves at $5.63.

Live cattle are posting losses aside from the October contract, while feeders are sharply lower.

Live cattle futures have given up earlier strength, despite wholesale price strength and persisting bullish supply fundamentals.
Cash cattle prices ended last week stronger than expected, though the week’s average is likely to be down slightly from the previous week’s average of $183.64.
Wholesale cattle prices jumped Friday, with Choice gaining $4.25 to $302.01, while Select firmed $1.01 to $275.78, taking the Choice/Select spread to $26.23. Movement was moderate, however, at 97 loads.
October live cattle have extended last week’s gains, though the 10-day moving average of $183.75 is providing resistance, while support lies around the 40-day moving average of $182.72.

Lean hogs are marking moderate to sharp losses at midsession.

October lean hogs are edging lower on eroding cash fundamentals.
The CME lean hog index is down another 67 cents to $83.03, the lowest level since June 5.
The pork cutout value fell $1.76 Friday to $93.22, led by a $7 drop in primal bellies. Movement totaled 252.2 loads.
October lean hogs are finding support at the 10-day moving average of $81.24. Resistance stands at today’s high of $81.825.

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