Market Snapshot | December 28, 2023

Market Snapshot
Market Snapshot
(Pro Farmer)

Corn futures are mostly unchanged at midmorning.

  • Corn futures are chopping mostly around unchanged amid light trade volume.
  • A good mix of rain and sunshine is expected in Argentina and southern Brazil, though net drying is expected in Sao Paulo and Parana for a while, despite a few showers, according to World Weather Inc.
  • Brazil corn exports in December have fallen to 6.96 MMT from an expected 7.17 MMT last week.
  • March corn futures continue to trade sideways within Tuesday’s range, limited by the 20-day moving average of $4.80 1/4, with support serving at $4.73 3/4.

 

Soybeans are around a penny to 2 cents higher, while soymeal is $2.00 lower. Soyoil futures are around 20 points higher.

  • Soybean futures are favoring the upside but are facing pressure from soymeal weakness.
  • Confidence is still very high for greater rain in northern Brazil this weekend and next week, reports World Weather. The boost in precip will bring a notable change to soil moisture in the northeastern states of the nation and will continue to improve crop and field conditions.
  • Brazil soybean exports are expected to have reached 3.48 MMT in December, down from an expected 3.5 MMT last week.
  • March soybeans are being limited by the 20-day moving average of $13.28 1/4, while the 10-day moving average of $13.21 1/4 is curbing losses. Additional resistance serves at $13.31 1/4, while further support lies at $13.12.

 

Winter wheat futures are mostly 7 to 9 cents higher, while HRS is around 3 to 5 cents higher.

  • Wheat futures are being led higher as solid technical support limits selling efforts.
  • Recent precip has improved the moisture profile across much of the central and southwestern Plains, while the potential is growing from a more significant cold air mass to arrive in the northern Plains after Jan. 7, states World Weather. Greater snow cover will be needed by then to protect crops from the cold, especially in the second half of January.
  • A Panama-flagged bulk carrier that was headed to a Danube River port to load grain hit a Russian mine in the Black Sea Wednesday, injuring two crew members. It was the latest incident involving a civilian vessel in what Kyiv says is stepped-up Russian attacks on shipping and port infrastructure in the Black Sea.
  • March SRW futures are being propped by the 10-, 20 and 100-day moving averages of $6.22, $6.21 and $6.15 1/2, while initial resistance stands at $6.33 3/4.

 

Live cattle are modestly lower, while feeders are marking heavier losses.

  • Live cattle are moderately lower amid slow cash trade development and wholesale weakness.
  • Cash cattle trade is slow to develop this week, increasing uncertainty around the outlook.
  • Wholesale cattle prices slid Wednesday, with Choice dropping $1.83 to $291.48, while Select fell 87 cents to $260.32. Movement totaled 106 loads for the day.
  • February live cattle are consolidating in sideways trade, supported by the 20-day moving average of $168.23, but limited by resistance at $170.41. Additional support/resistance serves at $167.79 and $171.54.

 

Lean hogs are moderately lower at midsession.

  • Nearby lean hogs are edging lower despite a modest rise in the lean hog index as traders remain leery that a seasonal low has been forged.
  • The CME lean hog index rose 12 cents to $65.71, though traders will remain hesitant a seasonal low is in place.
  • The pork cutout value firmed 40 cents to $82.52 Wednesday, led by $3-plus gains in primal ribs and hams. Movement was strong at 331.1 loads.
  • China had 41.6 million sows at the end of November, down 1.2% month-over-month and down 5.2% from the previous year, according to the Ministry of Agriculture and Rural Affairs. Meanwhile, the number of pigs slaughtered in November rose 44.6% from year-ago to 32.8 million head amid low prices, high costs and increasing outbreaks of African swine fever.
  • February lean hogs continue to face resistance at the 10-day moving average of $70.49, while initial support lies at $68.80. Additional resistance stands at $71.275, while further support serves at $67.725.

 

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