Market Snapshot | March 3, 2022

Corn futures are sharply higher at midmorning, with nearby prices trading more than 20 cents higher.

• Nearby corn futures extended a recent rally to 10-month highs as the Russia/Ukraine war fueled concerns over disruptions to the global grain trade and signs of new export business for the U.S.
• Traders note the freight market and basis trade would imply significant corn business has or is taking place. USDA today reported a daily corn sale of 337,000 MT to “unknown destinations” for 2021-22.
• USDA reported net weekly U.S. corn sales of 485,100 MT for 2021-22, down 53% from the previous week and down 47% from the average for the previous four weeks. Expectations ranged from 600,000 MT to 1.2 MMT for 2021-22. For 2022-23, net sales totaled 222,800 MT.
• Taiwan purchased 130,000 MT of U.S. and/or Argentine corn. South Korea purchased 207,000 MT of optional origin corn.
• May corn futures rose as high as $7.52, a contract high for the second day in a row, while March corn hit $7.66 1/4, the highest for a nearby contract since May 2021. Based on continuation charts, bulls will target the May 2021 high at $7.75.

Soy complex futures are higher, with old-crop soybeans up around 30 cents, May soymeal up more than $9 and soyoil posting slight gains.

• Nearby soybeans rose to the highest level in a week on spillover from sharp gains in wheat.
• USDA reported a daily soybean sale of 132,000 MT to China equally divided between the 2021-22 and 2022-23 marketing years. Since Jan. 28, USDA has reported a combined 5.596 MMT of soybean sales to China or unknown destinations, a more than seven-fold increase from the pace the previous month.
• Net weekly soybeans sales totaled 857,000 MT for 2021-22, down 31% from the previous week and down 34% from the prior four-week average. Net weekly sales totaled 1.386 MMT for 2022-23, including 1.26 MMT for China. Sales were expected to range from 600,000 MT to 1.05 MMT for 2021-22 and 600,000 MT to 1.3 MMT for 2022-23.
• India’s palm oil imports in 2021-22 are forecast at 7.6 MMT, down from 8.9 MMT in 2020-21, according to the head of the Indian Vegetable Oil Producers’ Association, as tight supplies and record prices slow use.
• China’s palm oil imports this year are expected to total 6.7 MMT, up from 6.6 MMT in the previous year, according to the chief representative for the Malaysian Palm Oil Council in China.
• May soybeans rose as high as $16.99 but faded in the face of resistance around the $17 area, which also capped gains the previous two days. May soyoil posted a contract high at 77.33 cents before fading.

Wheat futures are sharply higher, with May HRW and the May and July SRW contracts locked at the expanded 75-cent limit.

• Winter wheat futures soared above $11, with the SRW market gapping higher and hitting a 14-year high on escalating concerns over the Russia/Ukraine conflict.
• Net weekly wheat sales totaled 300,000 MT for 2021-22, down 42% from the previous week but up 54% from the prior four-week average. Net sales totaled 69,800 MT for 2022-23. Sales were expected to range from 200,000 to 650,000 MT for 2021-22 and 50,000 to 275,000 MT for 2022-23.
• Turkey's state grain board TMO will cut its tender for wheat to about 285,000 MT from 370,000 MT because of high prices, Reuters reported.
• May SRW futures reached $11.34, a contract high for the third day in a row. May HRW also posted a contract high for the third day in a row, touching $11.50 1/4. HRW and SRW futures price limits remain at 75 cents today.

Cattle futures are sharply lower at midmorning, with live cattle dropping to four-month lows.

• Live cattle futures extended a slide on technical weakness, slumping wholesale beef and concerns the Russia/Ukraine war will hurt global beef demand.
• Feeder cattle are under pressure as corn futures extended a rally about $7.
• Light cash cattle trade was reported yesterday at $140 to $141 in the Southern Plains yesterday, down $2 to $3 from last week. Continued weakness in front-month futures prompted some feedlots to sell, though most are still holding out for steady or firmer prices.
• Choice grade cutout values fell 96 cents yesterday to an 11-month low at $255.72. Movement was strong at 145 loads.
• Net weekly U.S. beef sales totaled 23,800 MT for 2022, up 64% from the previous week and up 23% from the prior four-week average.

Lean hog futures are mostly higher at midmorning, with nearby April weaker and deferreds lower.

• Hog futures continued a sideways trade, with firm cash fundamentals providing support but beliefs growing the market hit a seasonal late-winter peak in late February.
• The CME lean hog index up 18 cents to $99.84, a six-month high. April futures are trading at around a $6 premium to the index, reflecting expectations the cash index will continue to rise.
• Pork cutout values rose 23 cents yesterday to $108.42, after dropping the three previous days. Movement totaled 242.6 loads.
• Net U.S. pork sales totaled 42,200 MT for 2022, up 59% from the previous week and up 80% from the prior four-week average.