Market Snapshot | January 8, 2024

Corn futures are mostly 7 to 8 cents lower at midmorning.

Corn futures have marked fresh contract lows, with spillover pressure stemming from wheat and soybean futures as well as plummeting crude oil prices.
USDA reported corn export inspections of 856,597 MT (33.7 million bu.) during week ended Jan. 4, up from the previous week by 286,740 MT and within the pre-report range of 500,000 to 975,000 MT.
World Weather Inc. maintains weather in Argentina will be favorably mixed over the next two weeks, supporting crop development and routine fieldwork.
March corn has extended below support at $4.57 3/4 and $4.55, with additional support lying at $4.50 1/4. Initial resistance stands at $4.62 3/4.

Soybeans are mostly 12 to 16 cents lower, while March soymeal is around $2.00 lower. March soyoil is 40 points lower.

Soybean futures are extending last week’s weakness amid favorable South American weather.
Beneficial rain fell on much of northern Brazil during the weekend with the rain most important in northeastern areas where little additional rain is expected through the next 10 days while warm and dry weather was common from Mato Grosso do Sul into Paraguay, notes World Weather.
Brazil’s 2023-24 soybean harvest reached 0.6% complete as of last Thursday, according to AgRural, above the 0.04% seen at the same time last year. However, in Mato Grosso, where crops suffered from a lack of moisture for much of the cycle, rains are now making it difficult for harvesters to advance in some areas.
USDA reported soybean export inspections of 674,749 MT (24.8 million bu.) during week ended Jan. 4, down 294,705 MT from the previous week and shy of the pre-report range of 700,000 MT to 1.125 MMT.
March soybeans have extended below support at $12.50 and $12.44 1/4, with further support at $12.33 3/4. Initial resistance stands at $12.60 3/4.

SRW wheat futures are mostly 17 to 19 cents lower, while HRW is 11 to 12 cents lower. HRS futures are mostly 9 to 10 cents lower.

Wheat futures are notably lower despite U.S. dollar weakness as overhead resistance continues to curb buying.
Sudden changes in weather conditions across Ukraine recently and frequent thaws could have a negative impact on winter cereals this year, reducing their resistance, consultancy APK-Inform quoted government scientists as saying. “Potential risks under changing conditions are quite high,” the scientist noted, as it reduces hardiness of winter crops.
Ukraine’s grain exports so far in the 2023-24 marketing season have fallen to about 19.4 MMT from almost 23.6 MMT at the same time a year ago, agriculture ministry data showed.
USDA reported wheat export inspections of 491,074 MT (18.0 million bu.), up 214,641 MT from the previous week and above the pre-report range of 200,000 to 350,000 MT.
March SRW futures are facing strong resistance at the 10- and 20-day moving averages, each trading around $6.17, while initial support is at last week’s low of $5.91 1/4.

Live cattle are mixed, while feeders are posting solid gains.

Live cattle have traded on both sides of unchanged in directionless price action to start the week.
Cash cattle prices rose last week, which should limit seller interest, especially since cash prices are currently above futures.
Choice boxed beef prices firmed $1.26 Friday to $277.16, while Select rose 71 cents to $259.53. Movement totaled 106 loads.
February live cattle extended well above the 40-day moving average of $170.93 but have returned to near that level, while the 50-day moving average of $173.32 is now serving as resistance. Initial support remains at the 10-day moving average of $170.41.

Lean hogs are posting modest gains in most contracts at midsession.

February lean hogs are hovering mostly around Friday’s close as overhead resistance at the 40-day moving average limits the upside.
After consecutive days of gains, the CME lean hog index slipped a penny to $65.85 as of Jan. 4.
The pork cutout value fell 30 cents to $84.20, led lower by an over $6 drop in primal picnics. Movement totaled 313.0 loads.
February lean hogs are facing initial resistance at the 40-day moving average of $70.64, while initial support lies at the 20-day moving average of $69.15.

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