Market Snapshot | April 17, 2024

Corn futures are hovering around unchanged at midmorning.

• Corn futures are directionless in light and choppy trade.
• Rainfall from Rio Grande do Sul into Mato Grosso do Sul will be timely into May, supporting safrinha crops, despite some ongoing low subsoil moisture in Mato Grosso do Sul and immediate neighboring areas. Some areas in Rio Grande do Sul may become too wet for maturing crops, according to World Weather Inc.
• Some planting delays are expected in U.S. growing areas into May, but overall, the outlook is mostly “normal” for planting potential. World Weather notes fieldwork should advance fastest in the western Corn Belt. The Delta is starting to see improving field conditions after too much rain last week.
• Weekly ethanol production averaged 983,000 barrels per day (bpd) during the week ended April 12, down 73,000 bpd (6.9%) from the previous week and 4.0% below year-ago. Ethanol stocks declined 128,000 barrels to 26,08 million barrels.
• May corn futures continue to face resistance at the 20-day moving average of $4.33 3/4, while initial support lies at $4.30 1/2 and is backed by additional support at $4.28 3/4.

Soybean futures are mostly 5 to 8 cents higher, while soymeal is $4.00 to $5.00 higher. May soyoil is about 30 points higher.

• Nearby soybeans are higher amid corrective buying following two straight days of losses.  
• Some planting delays are expected in U.S. growing areas into May, but overall, the outlook is mostly “normal” for planting potential. World Weather notes fieldwork should advance fastest in the western Corn Belt. The Delta is starting to see improving field conditions after too much rain last week.
• Malaysian palm oil futures closed lower overnight for a fourth straight session and closed at the lowest level in six weeks amid competitive pricing of rival edible oils outweighed demand.
• May soybeans are facing resistance at $11.57 1/2, while initial support serves at $11.37 3/4.

SRW wheat futures are mostly a penny to 3 cents lower, HRW futures are 3 to 5 cents lower and HRS futures are chopping around unchanged.

• Winter wheat futures are edging lower, with mild weakness in the U.S. dollar supplying minimum support as it continues to hover around a 5 1/2 month high.
• France’s ag ministry cut its 2023-24 wheat export forecast outside the EU by 150,000 MT to 10 MMT. Expected shipments within the bloc were raised 90,000 MT to 6.28 MMT.
• Ukraine’s 2023 grain crop totaled around 60 MMT, according to the agriculture ministry.
• May SRW wheat futures continue to face resistance at the 20-, 40- and 10-day moving averages of $5.53 3/4, $5.54 1/2 and $5.56 1/2, while initial support remains at $5.42 1/2.

Live cattle are mostly lower, while feeders are posting gains.

• Nearby live cattle are pausing following two days of corrective gains. Traders are waiting on direction from the cash market and positioning ahead of Friday’s Cattle on Feed Report.
• Choice boxed beef prices fell $2.86 to $298.02 on Tuesday, while Select firmed $1.30 to $292.64. The $300.00 level has become a pivot point for Choice beef as of late, hovering within a couple dollars on either side of the level for the past two weeks.
• At USDA’s spring data users meeting on Tuesday, the decision to discontinue the July Cattle Inventory Report was a major topic. NASS officials explained these choices were driven by budget constraints rather than shifting funds to other projects.
• June live cattle continue to face resistance at the 100-day moving average, currently trading at $176.33, while initial support lies at the 10-day moving average of $173.90.

Lean hog futures are narrowly mixed at midsession.

• Hog futures are directionless in midmorning trade.  
• The CME lean hog index rose another 25 cents to $90.98, extending the seasonal rally.
• The pork cutout value dropped $4.05 to $99.55 Tuesday amid a $22.78 decline in primal bellies. Movement totaled 282.4 loads.
• June lean hogs are trading mostly between the 20- and 40-day moving averages of $103.42 and $102.15, respectively. Additional resistance/support is at $103.96 and $101.04.