Market Snapshot | March 20, 2024

Corn futures are unchanged to 2 cents lower. 

• Corn futures are weaker amid spillover pressure from wheat and crude oil, though gains in the soy complex are limiting selling. 

• China imported 4.1 MMT of corn from Brazil during the first two months of this year, two-thirds of its total imports and a 178% jump from the same period last year. Corn imports from the U.S. of 766,989 MT were down 67% from the first two months of last year. 

• Safrinha corn areas in central and southern Mato Grosso do Sul and central and northern Paraguay will see rain Thursday into Friday along with cooler temps, which will temporarily improve crop conditions, though a drier pattern will resume Saturday through next week.  

• Ethanol production rose 22,000 barrels per day (bpd) to 1.046 million bpd during the week ended March 15, and were up 49,000 bpd (4.9%) above year-ago. Ethanol stocks rose 227,000 barrels to 26.009 million barrels.  

• Thailand plans to ban corn imports from neighboring countries linked to agriculture burning that causes air pollution, an official said.  

• May corn continues to be restricted by the 10-day moving average of $4.38 1/4, while support lies at Tuesday’s low of $4.35.  

Soybean futures are 6 to 8 cents higher, while soymeal is more than $2.00 higher. May soyoil is around 40 points higher. 

• Soybeans are trading higher along with soymeal futures, with corrective strength in soyoil is lending additional support.  

• USDA reported daily soybeans sales of 120,000 MT to unknown destinations for 2024-25.  

• China’s soybean imports from Brazil totaled 6.96 MMT during the first two months of this year, a 211% increase from year-ago. Combined January and February soybean arrivals from the U.S. fell to 4.96 MMT, down 48.9% from the same period last year.  

• Malaysian palm oil futures rebounded overnight as better export figures and expectations of easing production growth in March supported prices. 

• May soybeans poked above the 50-day moving average of $11.95 1/4, though buying above the level remains limited. Initial support lies at the 10-day moving average of $11.88 1/2 and is backed by the 40-day of $11.84 1/2.  

Winter wheat futures are mostly 10 to 13 cents lower, while HRS is 6 to 8 cents lower.  

• Wheat futures have given up Tuesday’s gains amid corrective selling as technical pressure continues to curb the upside.  

• Russia will adjust its grain export duties but not cancel them, according to Russian Agriculture Minister Dmitry Patrushev. He noted duties were adjusted at the start of 2023-24 and would be again for the new-crop marketing year but did not give specific figures. 

• European grain trading association Coceral cut its forecast for this year’s soft wheat production in the European Union, including the UK, to 134.1 MMT from its projection of 139.5 MMT in December. 

• May SRW wheat futures continue to face notable resistance at the 20-day moving average of $5.53, while support lies at $5.33 1/2. 

Live cattle are mildly weaker, while feeders are modestly favoring the upside at midmorning. 

• Nearby live cattle are consolidating as overhead resistance continues to dampen buying efforts. 

• There are few packers bidding for cattle so far this week. Processors should benefit from an uptick in spring demand that will spur retailers to push inventory to higher levels in anticipation of improved demand as the grilling season approaches. Slaughter levels moved higher last week and may increase again this week.  

• Choice boxed beef dropped 11 cents Tuesday to $313.22, while Select rose 13 cents to $303.18. Movement improved to 138 loads. 

• April live cattle continue to edge sideways, with initial support at the 20-day moving average of $187.65, while resistance stands at $188.61. 

Lean hog futures are modestly higher at midsession. 

• April hogs are posting mild gains after Tuesday’s losses.  

• The CME lean hog index is up another 28 cents to $82.82 as of March 18. 

• The pork cutout value rose 21 cents Tuesday to $93.37, led by gains in primal ribs. Movement totaled 269.4 loads. 

• April lean hogs are trading within Tuesday’s range and continue to base around the 10-day moving average of $85.20, while initial resistance is at $86.60.