Market Snapshot | October 10, 2023

Corn is mostly a penny lower at midmorning.

Corn futures are being led lower by SRW wheat futures and profit-taking in crude oil futures.
Brazilian farmers will reap an estimated 119.404 MMT of corn, a 9.5% drop from last season, reflecting a smaller planted area and lower yields amid the initial effects of the El Nino weather pattern, according to Conab’s first crop production estimate.
USDA reported weekly export inspections of 550,585 MT (19.7 million bu.), which are down 119,539 MT from the previous week and near the low-end of the pre-report range of 500,000 to 925,000 MT.
December corn is hovering under the 10-day moving average of $4.87 is serving as resistance, while support is serving at the 40-day moving average of $4.83 1/2.

Soybeans are mostly 1 to 3 cents higher, while December meal futures are around $1.50 higher. December soyoil is around 150 points lower.

Soybean futures are taking support from meal futures, while selling efforts in soyoil are limiting gains.
In its first forecast for 2023-24, Conab projects Brazilian soybean production will increase 4.8% to a record 162.0 MMT. Soybean plantings are expected to rise 2.5% to 45.1 million hectares.
Malaysian’s palm oil stockpiles hit an 11-month high at the end of September, according to data from the Malaysian Palm Oil Board (MPOB) showed on Tuesday, raising concerns about demand for the commodity. Inventories rose 9.6% from August to 2.31 MMT, the fifth consecutive month of increases at the world’s second largest palm oil producer.
USDA reported weekly export inspections of 1,643,376 MT (60.4 million bu.), which were up 966,717 MT and nearly twice the top-end pre-report estimate of 825,000 MT.
November soybeans are trading within Monday’s range, with support serving at $12.55 3/4, while resistance at the 10-day moving average of $12.81 is limiting upside.

Winter wheat futures are mostly 9 to 10 cents lower, while HRS contracts are around 4 to 10 cents lower.

SRW wheat futures are extending lower for the third consecutive session despite looming concerns of global production curbs.
Ukraine’s ag ministry said farmers had sown around 3.7 million hectares of winter crops as of Oct. 9, including 2.35 million hectares of winter wheat. The wheat plantings represented 54% of the expected area for 2023-24.
World Weather Inc. reports Brazil wheat is still facing a grain quality decline because of too much moisture, while Argentina is still dealing with drought, although recent showers and those coming will offer some temporary relief.
USDA reported weekly export inspections of 395,017 MT (14.5 million bu.), which were down 33,757 MT, but within the pre-report range of 300,000 to 500,000 MT.
December SRW futures continue to consolidate within the Sept. 29 range, with support serving at $5.56 1/2, while resistance stands at the 20-day moving average of $5.77 3/4.

Live cattle and feeders are mixed at midsession.

Live cattle futures are trading mostly sideways and is being limited by overhead resistance.
Packers purchased 95,000 head of cattle in negotiated trade last week, which was the largest volume since June, suggesting packer demand for cattle will be limited this week.
Wholesale beef prices continued to rise, with Choice increasing $1.41 to $303.41, while select firmed $1.72 to $277.50.
October live cattle are trading narrowly within Monday’s range, with the 10-day moving average of $183.46 limiting upside, while support serves at Monday’s low of $182.325.

Lean hogs are modestly higher at midmorning.

October lean hogs gapped higher at the open amid strengthening wholesale fundamentals.
The CME lean hog index is down another 57 cents to $82.46 as of Oct. 6, extending its seasonal slide.
The pork cutout value rose $1.84 to $95.06 on Monday, led by an over $13 gain in bellies. Movement totaled 234.1 loads for the day.
October lean hogs are pivoting around the 20-day moving average of $82.28, with resistance serving at $82.68, while the 40-day moving average of $81.78 serves as support.

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