Market Snapshot | April 25, 2024

Corn futures are a penny to 2 cents higher at midmorning.

Corn futures have turned higher, though profit-taking in soybean futures is limiting the upside.
USDA reported weekly corn sales of 1.3 MMT for the week ended April 18, which rose notably from the previous week and were up 74% from the four-week average. Net sales topped pre-report expectations of 400,000 to 900,000 MT.
Argentine corn farmers are bracing for a warmer-than-normal Southern Hemisphere winter that will likely undermine efforts to reduce the population of leafhopper insects that damage the crop, according to the Rosario Grains Exchange.
Some spring planted crops could face flooding across the Midwest, northern Delta and part of Oklahoma, increasing the possibility of replanting across the area.
May corn

Soybean futures are mostly 8 to 11 cents lower, while soymeal is nearly $5.00 lower. May soyoil is about 30 points lower.

Soybeans are marking heavier selling efforts amid profit-taking after a series of recent gains.
USDA reported net weekly soybean sales of 210,900 MT for the week ended April 18, which were down 57% from the previous week and 29% from the four-week average. Net sales were short of the expected pre-report range of 300,000 to 600,000 MT.
World Weather Inc. maintains flooding is expected in southern Brazil—mostly in Rio Grande do Sul where multiple inches of rainfall will occur in the coming week to ten days. Flooding of low-lying areas is expected, with damage to soybeans and other crops possible. The forecaster notes Uruguay and northeastern Argentina will get some heavy rain from the event as well.
May soybeans gapped lower overnight and are testing support at the 10-day moving average of $11.56 1/2. Additional support lies at $11.47 1/4, while resistance continues to serve at the 20- and 40-day moving averages of $11.67 and $11.74 1/2.

Winter wheat futures are mostly a penny to 2 cents higher, while HRS futures are 3 to 4 cents higher.

Wheat futures have turned from overnight highs to mark mild gains as buyer interest fades in the wake of recent strong gains.
Weekly wheat sales totaled 82,000 MT for 2023-24 and 371,900 MT for 2024-25 during the week ended April 18, according to USDA. Net sales were within the expected pre-report ranges of net reductions of 100,000 to 100,000 MT for 2023-24 and 100,000 to 400,000 MT for 2024-25.
U.S. western HRW wheat areas and unirrigated crops in the Pacific Northwest need moisture to develop favorably, while flooding rain in Missouri and Illinois in this coming week could harm some of the SRW wheat crop, states World Weather.
May SRW wheat has edged to the highest level since early February, with initial resistance serving at $$6.02 1/2, while initial support lies at the 100-day moving average of $5.88 1/4.

Live cattle are marking slight- to moderate gains while feeders are moderately to sharply higher at midsession.

Nearby live cattle are notably higher despite increasing concerns of H5N1 virus as technical support continues to limit selling efforts.
USDA reported net beef sales of 15,200 MT for 2024, down 14% from the previous week and 3% from the four-week average.
Wholesale beef prices stumbled Wednesday, with Choice dropping $1.66 to $295.74, while Select slid $2.34 to $290.42. Movement totaled 148 loads for the day.
Colombia blocked some fresh/frozen beef and beef products from cattle slaughtered on or after April 15 in Idaho, Kansas, Michigan, New Mexico, North Carolina, Ohio, South Dakota and Texas—the eight states that have detected the H5N1 virus in dairy cattle. USDA’s Food Safety and Inspection Service (FSIS) said the restrictions are “temporary.” The Dominican Republic could be the next to apply restrictions, though FSIS information doesn’t reflect any changes yet.
June live cattle are trading within the previous session’s range, with initial support serving at the 10-day moving average of $181.60, which is backed by the 20-day moving average of $181.15.

Lean hog futures are posting strong losses at midsession.

Hog futures are steadily lower amid a corrective pullback, though solid technical support is curbing the downside.
The CME Lean hog index is up another 19 cents to $91.64 as of April 23, marking a new high in the seasonal rally.
The pork cutout value rose a modest 38 cents Wednesday to $97.27, with gains in all cuts except primal ribs. Movement totaled 233.3 loads.
USDA reported net pork sales of 28,800 MT for 2024, up 32% from the previous week but down 25% from the four-week average.
June lean hogs gapped lower at the open, with support at the 20- and 40-day moving averages, currently trading at $104.92 and $103.13 limiting the downside, while initial support stands at the session open and high of $106.90.

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