Market Snapshot | March 4, 2024

Corn futures are mostly 3 to 5 cents higher.

• Corn futures have recouped Friday’s losses on resumed corrective buying, though technical resistance continues to limit cap the upside.
• USDA reported daily corn sales of 110,000 MT to Taiwan during the 2023-24 marketing year.
• China snapped up more than 20 cargoes of feedgrains amounting to more than 1.2 MMT on the international market the past two weeks, Bloomberg News reported. China secured shipments of corn, sorghum and barley from suppliers including Ukraine and U.S., the report said.
• Soil moisture is short in parts of Paraguay, Mato Grosso do Sul and western Paran and rain during the next two weeks will be most important in this region, notes World Weather Inc.
• USDA reported corn export inspections of 1.084 MMT (42.7 million bu.) for the week ended Feb. 22, which were down 205,590 MT from the previous week but within the pre-report range of 850,000 MT to 1.35 MMT.
• May corn is trading mostly between the 10- and 20-day moving averages of $4.24 3/4 and $4.33 1/4. Additional support and resistance are at $4.20 3/4 and $4.34 3/4.

Soybean futures are 7 to 9 cents higher, while May soymeal is around $1.00 higher and May soyoil is about 35 points higher.

• Soybeans are extending Friday’s gains, with a boost coming from followthrough buying in soymeal futures.
• USDA reported daily soymeal sales of 126,000 MT to unknown destinations. Of the total, 30,000 MT is for delivery during 2023-24 and 96,000 MT is for 2024-25.
• Brazil’s soybean harvest reached 48% of the planted area as of last Thursday, according to AgRural, up eight percentage points from the previous week and above the 43% seen at the same time a year earlier.
• India is expected to buy larger volumes of soyoil in 2024, while purchases of palm oil are likely to decline, as negative refining margins for palm oil versus positive margins for soyoil have prompted a switch in recent weeks.
• Chevron indefinitely idled two Midwest biodiesel production facilities, the company confirmed on Friday, citing poor market conditions. Chevron idled plants in Ralson, Iowa and Madison, Wisconsin, that combined can process 50 million gallons of biodiesel per year.
• USDA reported soybean export inspections of 1.021 MMT (37.5 million bu.), which were down 37,668 MT from the previous week but within the pre-report range of expectations from 450,000 MT to 1.425 MMT.
• May soybeans are trading above the 10-day moving average of $11.53, while today’s low of $11.51 3/4 is initial support.

HRW wheat futures are 7 to 10 cents higher, while SRW is 4 to 6 cents higher. HRS futures are mostly a dime higher.

• The wheat complex is showing strength as corrective buying underpins the grain complex.
• The Australian agriculture ministry raised its estimates for the country’s 2023-24 winter wheat crop by about 500,000 MT to 26 MMT.
• USDA reported wheat export inspections of 353,137 MT (13.0 million bu.), down 128,862 MT from the previous week and just above expectations from 300,000 to 550,000 MT. 
• May SRW posted a contract low overnight at $5.53 with next support at $5.49 3/4. Initial resistance stands at $5.71 1/4.

Live cattle are modestly lower, while feeders are posting heavy losses.

• Nearby live cattle are modestly lower as looming technical resistance continues to limit buying efforts.
• Cash cattle trade finished strong last week after mostly steady trade earlier in the week.
• Wholesale beef prices rose Friday, with Choice gaining $1.08 to $305.28, while Select firmed $1.56 to $295.74, narrowing the Choice/Select spread to $9.54. Movement totaled 103 loads.
• April live cattle continue to face resistance at $189.50, while initial support lies at the 10-day moving average of $187.34.

Lean hogs are mixed at midsession.

• Hog futures are trading mostly sideways in consolidated trade as last week’s high and the 10-day moving average serve as the trading range.
• The CME lean hog index is up 11 cents to $80.26 as of Feb. 29, with gains slowing.
• The pork cutout value surged $4.23 Friday to $94.45, led by a $20 jump in primal bellies. Movement totaled 307.3 loads.
• April lean hogs are trading within Friday’s range, with the previous session’s high of $88.25 serving as initial resistance, while support lies at the 10-day moving average of $86.62.