Market Snapshot | January 21, 2022

Corn futures are mostly firmer in light and choppy trade at midmorning.

• Corn futures fell initially on spillover pressure from weaker soybeans and wheat but prices moved off their lows following stronger-than-expected export sales.
• USDA reported net U.S. corn sales for 2021-22 of 1.091 MMT for the week ended Jan. 13, more than double the previous week and up 48% from the average for the previous four weeks. Sales topped expectations ranging from 500,000 MT to 1 MMT.
• Weekly exports of 1.298 MMT, a marketing-year high, rose 28% from the previous week and 29% from the four-week average. Net sales for 2022-23 totaled 105,000 MT.
• Also today, USDA also reported a daily corn sale of 247,800 MT during the reporting period for delivery to “unknown destinations” during 2021-22.
• March corn futures rebounded from overnight weakness and reached $6.17 1/4, the highest intraday price since $6.17 3/4 on Dec. 28, but quickly faded. The lead contract is up from $5.96 1/4 at the end of last week.
• A push above the Dec. 28 high may have bulls targeting the June high at $6.33. Initial support is seen at the 10- and 20-day moving averages, both around $6.02.

Soy complex futures are mixed, with soybeans down 9 to 10 cents and soymeal down over $6.00 while soyoil is up 20 to 30 points.

• Soybeans are under profit-taking pressure in the wake of this week’s rally to seven-month highs, but still poised for a strong gain this week.
• Net weekly soybean sales of 671,000 MT for 2021-22 came in at the low end of expectations and were also down 9% from the previous week, but up 12% from the prior four-week average.
• Top buyers included China at 797,000 MT, including 661,500 MT switched from unknown destinations and decreases of 3,300 MT. Net sales of 528,000 MT for 2022-23 included China, at 462,000 MT, and unknown destinations, at 66,000 MT.
• Weekly exports of 1.806 MMT were up 77% from the previous week and up 15% from the prior four-week average. Also today, USDA announced a daily sale of 132,000 MT of soybeans to China for 2021-22.
• Parts of central Argentina received heavy rains overnight, while northern portions of the country, southern Brazil and Paraguay remained hot and dry. A high-pressure ridge over these areas is expected to break down the middle of next week, bringing some rain relief.
• March soybeans are trading within yesterday’s range and up from $13.69 3/4 at the end of last week. A push above yesterday’s high at $14.29 1/2 may have bulls aiming for the contract high of $14.45 1/2, reached June 7. Initial support is seen at yesterday’s low at $13.87 1/2 and the 10-day moving average at $13.92.
• March soybean oil extended its rally to reach 63.74 cents, the highest since mid-July.

Wheat futures are mixed, with SRW and spring wheat 3 to 6 cents lower in nearby contracts and HRW modestly firmer.

• Some wheat futures are facing profit-taking following sharp gains earlier this week, though SRW contracts are still on track to end higher for the first time in four weeks. Prices remain supported by concerns over a potential Russia invasion of Ukraine and implications for global wheat trade.
• Net weekly U.S. wheat sales totaled 380,600 MT for 2021-22, up 44% from the previous week and up 62% from the prior four-week average. Sales were at the high end of expectations ranging from 175,000 to 400,000 MT. USDA also reported net sales of 72,000 MT for 2022-23.
• Weekly exports for 2021-22 of 391,400 MT were up 52% from the previous week and up 57% from the prior four-week average. 
• March SRW wheat fell as low as $7.79, down from a three-week high yesterday at $8.02 3/4 but up from $7.41 1/2 at the end of last week.                    

Cattle futures are lower at midmorning, with feeders leading declines.

• Live cattle futures are under pressure in light activity ahead of USDA’s Cattle on Feed Report, with uncertainty over cash market direction limiting buying interest.
• USDA is expected to show feedlot placements rising for the third consecutive month. Placements in December are expected to have risen 2.6% over the same month in 2020, based on a Reuters survey of analysts.
• Jan. 1 feedlot inventories were expected to be at 99.8% of year-ago levels, while marketings were 100.8% of year-ago levels.
• Cash sales this week were roughly steady compared with last week, though cash sources say if slaughter levels were normal, prices would have been stronger.
• Choice cutout values rose another $1.38 yesterday to $292.98, the highest daily average since Sept. 30. Movement totaled 129 loads.
• USDA reported net weekly U.S. beef sales at 12,800 MT for 2022, with featured buyers including China (3,900 MT, including decreases of 100 MT), Japan (2,100 MT, including decreases of 300 MT) and South Korea (1,800 MT, including decreases of 500 MT).
• April live cattle fell as low as $142.05, just below last week’s close at $142.125.

Lean hog futures are higher as prices extended this week’s rally to contract highs.

• April lean hogs rose for the fifth consecutive session, reaching a contract high at $94.875, on strengthening cash fundamentals. Deferred contracts also posted contract highs.
• The CME lean hog index fell 6 cents to $76.79, down slightly from the previous reading’s two-month high.
• Pork cutout values fell $3.23 yesterday to $92.24 as primal hams dropped nearly $26. Movement was relatively light at about 296 loads.
• USDA reported net weekly U.S. pork sales of 38,700 MT for 2022, primarily for Japan (21,800 MT, including decreases of 200 MT) and Mexico (9,700 MT, including decreases of 300 MT).