Market Snapshot | February 27, 2024

Corn futures are mostly 3 to 4 cents higher.

Corn futures are extending Monday’s gains in tandem with soybean and SRW wheat futures amid supportive outside markets.
South American crop consultant Dr. Michael Cordonnier kept his Brazilian and Argentine corn estimates unchanged at 112 MMT and 54 MMT, respectively. He maintained a neutral to lower bias toward both crops going forward.
Mexico’s agricultural harvested area is projected to drop in 2024 due to drought, prompting another record corn import figure this year with the formal dispute postponed, according to the “Agri-food Perspectives 2024” presentation by Mexican agribusiness consultancy firm Grupo Consultor de Mercados Agricolas (GCMA).
May corn is facing resistance at the 10-day moving average of $4.27 1/2, while initial support lies at Monday’s close of $4.22 1/2.

Soybean futures are mostly 6 to 9 cents higher, while May soymeal is around 20 cents lower. May soyoil is 80 points higher.

Soybeans have given up a portion of overnight strength amid a pullback in meal but continue to post followthrough strength.
USDA reported daily sales of 123,000 MT of soybeans for delivery to unknown destinations for the 2023-24 marketing year.
Dr. Michael Cordonnier kept his Brazilian and Argentine soybean estimates unchanged at 145 MMT and 50 MMT, respectively, given rains last week and more in the forecast this week. Cordonnier maintained a neutral to lower bias toward both crops.
May soybeans are facing resistance at $11.60 3/4, backed by the 10-day moving average of $11.66 1/4. Initial support lies at $11.43 1/4.

Wheat futures are mostly 10 to 12 cents higher.

Wheat futures are extending higher in step with corn amid U.S. dollar weakness.
State-level winter wheat crop conditions ratings released on Monday signaled more general improvement in the HRW crop over the past month. When the state crop ratings are plugged into the weighted Pro Farmer Crop Condition Index (0 to 500-point scale, with 500 being perfect), the crop improved 4.9 points from the end of January to 350.2 and was 26,9 points above USDA’s final national rating at the end of November.
Ukrainian President Volodymyr Zelenskyy said that without new U.S. military aid his country would be unable to defend a Black Sea shipping corridor that has allowed the country to export millions of tons of grain to global markets.
May SRW futures have extended above the 10-day moving average of $5.77 1/4 and is now facing resistance at the 20-day moving average of $5.90 3/4, while initial support lies at $5.70 1/4.

Live cattle and feeders are mixed at midmorning.

Nearby live cattle futures are mildly favoring the upside, though overhead resistance is limiting a move higher.
USDA’s Cold Storage Report showed frozen beef stocks at the end of January totaled 475.4 million lbs., down 4.9 million lbs. from December, whereas the five-year average was a 2.9 million-lb. increase during the month. Beef stocks fell 59.8 million lbs. (11.2%) from January 2023 and were 40.1 million lbs. (7.8%) below the five-year average.
Wholesale prices extended higher Monday, with Choice up $1.18 to $301.79, while Select firmed $1.68 to $287.99, though movement was light at only 82 loads.
April live cattle are facing resistance at last week’s high of $189.20, while initial support stands at the 10-day moving average of $186.88.

Lean hogs are favoring the downside at midsession.

Hog futures remain mostly subdued as traders remain hesitant to build premiums to the cash index.
USDA’s Cold Storage Report showed pork stocks rose 40.6 million lbs. during January to 468.0 million lbs. The five-year average was a 48.6 million-lb. increase during the month. Pork stocks declined 51.1 million lbs. (9.8%) from January 2023 and were 51.87 million lbs. (10.0%) lower than the five-year average.
The CME lean hog index is up another 36 cents to $79.46 as of Feb. 23.
The pork cutout value slipped 17 cents Monday to $90.99 amid declines in primal loins and hams. Movement totaled 296.5 loads.
April lean hogs are trading within Monday’s range, limited by resistance at $87.04, while support lies at the 10-day moving average of $85.42.

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