Market Snapshot | October 27, 2023

Market Snapshot
Market Snapshot
(Pro Farmer)

Corn is mostly 2 cents higher at midmorning.

  • Corn futures are gaining back a small portion of this week’s losses amid corrective buying following five straight days of selling.
  • Wet weather in the Midwest will continue through Sunday, slowing harvest efforts, but good harvest progress is expected after the precip when drier weather returns Monday through Nov. 10, according to World Weather Inc.
  • Argentina’s weather has improved from the absolute dryness of earlier this month and planting prospects are improving, states World Weather.
  • December corn continues to face resistance at the 40-day moving average of $4.85 1/4, while initial support lies at $4.76 1/4.

Soybeans are 17 to 19 cents higher, while December meal futures are nearly $14.00 higher. December soyoil is marginally higher.

  • Soybeans are being led higher by a continued rally in meal futures.
  • World Weather notes center-west Brazil and northeastern Brazil will remain drier than usual for another week while too much rain will continue to fall in southern Brazil.
  • Indonesia’s August palm oil exports, including refined products, totaled 2.07 MMT, down 55% from the same month a year-ago according to GAPKI. Crude palm oil production dropped to 3.86 MMT in August, from 4.36 MMT in July.
  • Malaysian palm oil futures fell overnight following two straight days of gains, amid strong soybean harvest prospects and gains in the ringgit.
  • November soybeans have extended above the 20- and 10-day moving averages of $12.84 1/4 and $12.95 1/2, respectively. Thursday’s low of $12.77 1/2 is providing support.

SRW wheat contracts are mostly 6 to 8 cents lower, while HRW is 10 to 15 cents lower. HRS contracts are mostly 6 cents lower.

  • The wheat complex is lower amid news Ukraine’s new Black Sea shipping corridor has resumed operations following a three-day pause.
  • Four vessels left Ukrainian Black Sea ports in the Odesa region today as shipping via a new export corridor resumed after a three-day pause.
  • Russia cut its wheat export tax for Nov. 1-7 to 4,923.4 rubles ($52.98) per metric ton based on an indicative price of $253.20. That’s down from a rate of 5,297.7 rubles per metric ton the previous week and the second straight weekly decline.
  • Russia’s agriculture Ministry forecasts grain exports of up to 65 MMT in the 2023-24 season. Russia’s grain harvest in 2023 is seen at 140 MMT, including 93 MMT tons of wheat.
  • Ukraine’s grain exports have fallen to 8.72 MMT so far in the 2023-24 marketing year, according to data from the country’s agriculture ministry.
  • December SRW futures continue to battle resistance at the 10- and 40-day moving averages of $5.79 1/2 and $5.80 3/4, respectively. Meanwhile, the 20-day average of $5.73 1/2 is serving as initial support.

Live cattle are posting gains, while feeders are mostly lower at midmorning.

  • Nearby live cattle are posting solid corrective gains, though overhead resistance is limiting momentum.
  • Cash cattle trade so far this week was at solidly lower prices, though trading volume was light as most feedlots passed. Packers began raising cash bids Thursday, suggesting increased interest.
  • Wholesale beef prices slid Thursday, with Choice falling 65 cents to $306.85, while Select dropped $1.97 to $279.69. Movement totaled 150 loads for the day.
  • Well below-average temps are expected through a large portion of the Plains into early next week, likely stressing cattle.
  • December live cattle are trading within Thursday’s range, with resistance at the 10-day moving average of $182.63 limiting the upside, while support lies around $178.49.

Lean hogs are posting moderate gains at midsession.

  • Lean hog futures are marking gains for the third straight session despite seasonally weak cash fundamentals and lower wholesale prices.
  • The CME lean hog index is down another 22 cents to $78.19 as of Oct. 25 amid seasonally building slaughter supplies.
  • The pork cutout value fell $1.86 to $85.73 on Thursday amid an $8 drop in bellies. Movement totaled 302.2 loads for the day.
  • December lean hogs have reached the highest level since Oct. 19, though the 20-day moving average of $69.14 is serving as resistance, while initial support lies at $67.80.
 

Latest News

H&P Report negative compared to pre-report expectations
H&P Report negative compared to pre-report expectations

Nearly every category topped the average pre-report estimates.

After the Bell | March 28, 2024
After the Bell | March 28, 2024

After the Bell | March 28, 2024

Pro Farmer's Daily Advice Monitor
Pro Farmer's Daily Advice Monitor

Pro Farmer editors provide daily updates on advice, including if now is a good time to catch up on cash sales.

PF Report Reaction: Bullish USDA data for corn
PF Report Reaction: Bullish USDA data for corn

Corn planting intentions and March 1 stocks came in lower than expected.

Report Snapshot: USDA shows lighter-than-expected corn acres and stocks
Report Snapshot: USDA shows lighter-than-expected corn acres and stocks

USDA reported corn acres of 90.036 million acres for 2024 and March 1 stocks of 8.347 billion bu., both well below trade estimates. Soybean acres were slightly lower than expectations, while stocks were higher.