Market Snapshot | March 27, 2024

Corn futures are 3 to 4 cents lower at midmorning.

• Corn futures have dropped to a three-week low amid followthrough selling.
• Brazil’s summer corn harvest is 42.8% complete, reflecting a 5.8 percentage point gain on the week and ahead of the completion rate of 41.9% a year earlier, according to Conab.
• Ethanol production averaged 1.054 million barrels per day (bpd) during the week ended March 22, up 8,000 bpd (0.8%) from the previous week and 49,000 bpd (5.1%) above year-ago. Ethanol stocks rose 83,000 barrels to 26.092 million barrels.
• May corn extended below support at $4.29 1/4 for the first time since March 7. Resistance stands at the session high of $4.32 1/4.

Soybean futures are mostly 4 to 5 cents lower, while soymeal is modestly higher. May soyoil is around 75 points lower.

• Soybeans are extending Tuesday’s losses but remain within Monday’s range amid consolidation.
• Conab noted soybean harvest in the Brazilian state of Mato Grosso is nearly complete, with late-planted areas showing “great yields.” Meanwhile, rains prevented harvest in Rio Grande do Sul and Parana from progressing, but late-maturing crops benefited from the moisture.
• Malaysian palm oil futures fell for a second straight session to a two-week low close overnight, in tandem with losses in rival oils.
• May soybeans gapped below the 10-day moving average of $11.98 1/2, which is now resistance. Support lies at Monday’s low of $11.88 1/2.

SRW wheat futures are mostly steady to a penny higher, while HRW is mostly a penny to 3 cents lower. HRS wheat is around 2 cents higher.

• Wheat futures are light and choppy as the market rebounded from overnight losses.
• Polish Agriculture Minister Czesla Siekierski will meet Ukrainian counterpart Mykola Solsky today in Warsaw to discuss Ukrainian imports, which have triggered farmer protests in Poland. Siekierski noted Ukraine wanted to maintain a liberal approach to trade while Poland emphasized humanitarian and military aid should be treated separately from food exports to protect farmers’ livelihoods in central and Eastern Europe.
• There may be a little concern over limited precip in Russia’s southern region and Ukraine, although those areas are not dry and have sufficient moisture. However, additional drying will eventually raise the need for moisture, notes World Weather.
• May HRW wheat is facing resistance at the 10- and 20-day moving averages, each trading around $5.80, while initial support lies at $5.72 1/4.

Live cattle and feeders are mixed at midsession.

• Nearby live cattle are pivoting around Tuesday’s closing level, with steep discounts to cash prices curbing selling efforts.
• Cash cattle trade remains limited so far this week, with a few changing hands around the $186.00 level in the northern market. Sharp selling in live cattle futures to start the week suggests cash cattle could decline notably from last week’s record high of $189.56.
• Argentina exported 82,548 MT of beef in February, the largest monthly total since 1967. During the first two months of the year, Argentine beef shipments reached a record 160,478 MT, with more than three quarters of the total going to China.
• Choice boxed beef prices rose 20 cents Tuesday to $311.09 while Select fell $1.70 to $300.26. Movement totaled 122 loads for the day.
• April live cattle are trading within Tuesday’s lower range, supported by its low of $181.775, while the 200-day moving average at $185.48 serves as initial resistance.

Lean hog futures are modestly firmer at midsession.

• April hogs are higher amid corrective buying despite forging a bearish low-range close in the previous session as resurgent gains in the cash index bolster buying.
• The CME lean hog index is up 22 cents to $83.69 as of March 25 following a one-day decline.
• The pork cutout value fell 41 cents to $95.33, led lower by a $10 drop in bellies. Movement totaled 267.8 loads.
• April lean hogs are trading within Tuesday’s upper range, limited by resistance at the previous session’s high of $86.40, while the 10- and 20-day moving averages at $85.60 and $85.50, respectively, provide initial support.