Market Snapshot | December 8, 2023

Corn futures are 1 to 2 cents higher at midmorning.

• Corn futures are notching mild followthrough gains, with spillover strength stemming from the soy complex and strong corrective gains in crude oil futures.
• USDA reported daily corn sales of 165,000 MT for delivery to unknown destinations for 2023-24.
• USDA will not update corn production in its December Crop Production Report at 11:00 a.m. CT. Any changes to domestic use in the Supply & Demand Report will likely be limited, with traders expecting ending stocks at 2.152 billion bu. (2.156 in November) Global production will be the bigger focus, especially for South America.
• March corn continues to face resistance at the 40-day moving average, currently trading at $4.91 1/4, with support at the 20-day moving average of $4.85 1/4. Further resistance stands at the 100-day moving average of $5.01 1/4, with additional support at the 10-day moving average of $4.82 3/4.

Soybeans are mostly 8 to 10 cents higher, while January meal futures are around $3.00 higher. January soyoil futures are modestly higher.

• Soybeans are trading higher for the second straight session, with meal strength bolstering gains.
• USDA reported daily soybean sales of 136,000 MT to China for 2023-24.
• USDA will not update the soybean crop estimate this morning. Ending stocks are expected at 243 million bu. (245 million bu. in November).
• Center-west Brazil will experience some erratic rainfall over the next two weeks, offering moisture, but “normal” rainfall is certainly not expected and worry over the distribution of rain will continue, states World Weather Inc. Northeastern Brazil will continue drier biased over an extended period of time, though an absolute absence of rain is not likely.
• January soybeans have edged above the 200- and 10-day moving average of $13.19 1/2, with additional resistance at $13.23 1/4 and then the 40-day moving average of $13.34 1/4. Initial support lies at $13.07 1/4.

SRW wheat futures are 5 to 7 cents higher, while HRW is mostly 3 cents higher and HRS is narrowly mixed.

• SRW wheat futures are facing mild losses for the first session in nine amid corrective selling ahead of USDA’s December crop reports and amid strength in the U.S. dollar.
• USDA reported daily SRW wheat sales of 110,000 MT to China for 2023-24, bringing this week’s sales to China to 1.12 MMT.
• Traders are expecting wheat ending stocks to remain unchanged from November 684 million bu. in today’s Supply & Demand update.
• India lowered the amount of wheat traders and millers can hold to increase domestic availability and moderate prices, the food ministry said. Traders and wholesalers can now hold 1,000 MT of wheat stocks, half the previous limit. The government is also prepared to release an additional 2.5 MMT of wheat in the domestic market, if required, to reign in prices, along with potentially slashing the import duty on Russian wheat.
• India’s wheat inventories at state warehouses have dropped to 19 MMT, the lowest in even years, to government sources told Reuters. “Stocks are lower, but the government still has sufficient stocks to ensure that prices do not rise sharply. The government can still offload more wheat in the market if there’s a requirement,” according to one of the sources.
• March SRW futures are facing resistance at Thursday’s high of $6.45, though support continues to lie at the 100-day moving average of $6.30 1/4.

Live cattle are moderately to sharply higher, while feeders post slightly stronger gains.

• Live cattle are marking cautious corrective strength following heavy losses over the past two sessions.
• Cash cattle trade continues to edge lower and is currently about $4.00 below last week’s cash average of $174.75.
• Wholesale beef prices slid Thursday, with Choice falling 72 cents to $289.84, while Select dropped $1.07 to $258.83, though movement remained strong at 218 loads — the second straight day with spot movement of more than 200 loads.
• February live cattle continue to face strong technical pressure, with initial resistance serving at $164.37, with initial support serving at Thursday’s low of $162.55.

Lean hogs are narrowly mixed at midsession.

• February lean hog futures are trading narrowly in consolidative price action as continued seasonal pressure in the cash index and stale wholesale fundamentals limit buying efforts.
• The CME lean hog index is down another 31 cents to $69.12 as of Dec. 6.
• The pork cutout value rose a modest 17 cents Thursday to $83.37, while movement totaled 268.5 loads.
• February lean hogs have rebounded after poking below Thursday’s low, though the upside is limited by resistance at $68.625. Support lies at $67.175.