Market Snapshot | October 16, 2023

Corn is 3 to 4 cents lower at midmorning.

• Corn futures are facing mild selling to open the week.
• USDA reported a daily corn sale of 200,000 MT for delivery to Mexico during 2023-24.
• AgRural reported farmers in center-south Brazil have planted 41% of their first corn crop as of last Thursday, which was up from 37% from the previous week, but below the 46% registered a year earlier.
• USDA reported corn export inspections of 434,471 MT (17.1 million bu.) during week ended Oct. 12, which were down 369,947 MT from the previous week and below the pre-report range of 550,000 to 800,000 MT.
• December corn futures are being propped up by the 10-day moving average of $4.90 1/4, while initial resistance stands at $4.97 3/4.

Soybeans are chopping around unchanged, while December meal futures are around $2.50 lower. December soyoil is around 100 points higher.

• Soybean futures have given up earlier strength, with meal weakness pressuring the complex, though increasing soyoil strength is limiting the downside.
• USDA reported a daily sale of 183,000 MT of soymeal to the Philippines during 2023-24.
• Traders expect the National Oilseed Processors Association (NOPA) to report its members crushed 161.7 million bu. of soybeans during September, if realized, that would be up 0.1% from August and 2.5% above last year and a record for the month. Soyoil stocks are expected to total 1.208 billion lbs. at the end of September.
• Brazil’s soybean planting was estimated to be 17% complete as of last Thursday, according to AgRural, which is trailing behind last year’s pace of 24% as farmers face adverse weather conditions.
• USDA reported export inspections of 2,011,599 MT (73.9 million bu.) during week ended Oct. 12, which rose 607,667 MT from the previous week, and were well above the pre-report range of 650,000 MT to 1.3 MMT.
• November soybeans are hovering under the 20-day moving average of $12.85 3/4, while the 10-day moving average of $12.73 1/4 serves up support.

Winter wheat futures are mostly a penny to 2 cents lower, while HRS contracts are mostly a penny to 4 cents higher.

• SRW wheat futures have given up overnight gains, despite a weaker U.S. dollar.
• Russia’s IKAR agriculture consultancy raised its forecast for Russia’s grain crop by 400,000 MT to 141.6 MMT. The firm expects Russia to export 64.7 MMT of grain in 2023.24.
• USDA reported export inspections of 354,771 MT (13.0 million bu.), which were up 48,708 MT from the previous week and within the pre-report range of 250,000 to 450,000 MT.
• December SRW futures traded to the highest level since Sept. 27, though gains are being limited by the 40-day moving day average of $5.89 3/4. Meanwhile, support is at $5.78 1/2.

Live cattle are modestly higher, while feeders are mixed at midsession.

• Live cattle are posting modest gains amid stronger-than-expected cash trade last week, with traders looking for firmer prices again this week.
• Cash cattle traded higher last week, which gives traders hopes of firmer cash prices again this week. Though packers bought a lot of cattle, which could limit their willingness to actively raise bids again this week. USDA’s Cattle on Feed Report Friday afternoon will likely push cash trade late in the week.
• Choice boxed beef fell 39 cents on Friday to $300.80, while Select rose 47 cents to $275.49. Movement was light at 92 loads.
• October live cattle are trading within Friday’s range, and are pivoting around resistance at $185.72, while support lies at $184.77.  

Lean hogs are moderately lower at midmorning.

• October lean hogs are under pressure as weakening cash and wholesale fundamentals spur extended selling.
• The CME lean hog index is down 31 cents to $82.11, ending a two-day uptick in prices.
• The pork cutout value fell $1.64 on Friday to $90.50 amid a drop in all cuts except primal ribs. Movement increased to 310.4 loads.
• December lean hogs have extended below support at $68.90, with additional support at $68.30. Initial resistance continues to stand at $70.375.