Market Snapshot | November 29, 2023

Market Snapshot
Market Snapshot
(Pro Farmer)

Corn is narrowly mixed at midmorning.

  • Corn futures are chopping around unchanged after facing light pressure earlier in the session.
  • Ethanol production in week ended Nov. 24 averaged 1.011 million barrels per day (bpd), down 12,000 bpd from the previous week and 0.7% below the same week last year. Ethanol stocks fell 273,000 barres to 21.379 million barrels.
  • Overnight, South Korea purchased 65,000 MT of corn to be sourced from the U.S., South America or South Africa. The price drop is attracting more export business, signaling some global end-users see current prices as a value.
  • March corn continues to find support at $4.70 3/4, while initial resistance is at $4.76 1/2.

Soybeans are mostly 2 to 3 cents lower, while January meal futures are more than $5.00 lower. January soyoil futures are modestly weaker.

  • Soybean futures are facing mild pressure amid technical pressure along with weakness in meal and soyoil.
  • Soybean planting in Brazil’s state of Paraná was estimated at 96% compete as of Nov. 28, a three-percentage point weekly gain, according to state agency Deral. Soybean crops are showing abnormal development due to faster-than-expected flowering and moisture related diseases.
  • Malaysian palm oil futures fell overnight, weighed down by ringgit strength and better offers from larger producer Indonesia as traders await full month output estimates.
  • January soybeans continue to be limited at the 100-day moving average of $13.47 1/4, with additional resistance at the 10- and 20-day moving averages of $13.53 3/4 and $13.54 1/4. Support remains at $13.34.

SRW wheat futures are mostly a nickel to 6 cents higher, while HRW is 11 to 12 cents higher. HRS is mostly 4 to 6 cents higher.

  • Wheat futures are marking corrective gains for the second straight day despite modest strength in the U.S. dollar.
  • World Weather Inc. reports snow cover in a part of the U.S. Central Plains and Midwest is protecting winter crops, although there is no threatening weather coming up anytime soon. Warming is likely in many of these areas later this week into next week.
  • Heavy rain sweeping through southeastern Australia has damaged wheat crops, potentially shrinking production by more than 100,000 MT and turning up to 1 MMT of milling wheat into lower-quality feed grain.
  • Morocco will offer subsidies to import up to 2.5 MMT of soft wheat between Jan. 1 and April 30, 2024, state grains agency ONICL said. Morocco launched an import program for 2023-24 covering up to 2.5 MMT for July to September, followed by a second round for October to December allowing up to 2 MMT.
  • March SRW futures have extended above the 10-day moving average of $5.77 1/4, with additional resistance at the 20-day moving average of $5.88 1/2.

Live cattle are posting slight to moderate gains, while feeders are sharply higher.

  • Live cattle are notching followthrough strength after Tuesday’s corrective buying.
  • Tuesday’s limit-up performance in January feeder cattle triggered expanded price limits of $12.25 for today’s session. The daily trading limit for live cattle will be expanded to $10.00.
  • Cash cattle trade activity continued to slide lower from last week.
  • Choice boxed beef rose 92 cents Tuesday to $298.17, while Select slid $1.45 to $266.35, taking the Choice/Select spread to $31.82. Movement increased to 164 loads for the day.
  • February live cattle are trading narrowly within in the upper end of yesterday’s range, limited by the 10-day moving average of $174.48, while support is at $171.96.

Lean hogs are mostly firmer at midsession.

  • Nearby lean hogs are trading narrowly as continued weakness in the cash index limits buying.
  • The CME lean hog index is down another 67 cents to $71.66 as of Nov. 27, extending the seasonal price decline.
  • The pork cutout value fell $3.95 to $84.80, led by a $16 drop in bellies. All cuts marked a decline, while movement rose to 358.1 loads.
  • February lean hogs are consolidating mostly between initial resistance at $70.43 and support at $68.12.
 

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