Market Snapshot | March 11, 2022

Corn futures are mostly 3 to 4 cents lower at midmorning but off overnight lows.

• Corn futures fell overnight in a profit-taking setback from sharp gains yesterday but have trimmed losses as the wheat market rallied. Recent export strength is underpinning prices.
• USDA announced a daily corn sale totaling 128,900 MT to “unknown destinations” for delivery in the 2021-22 marketing year. Today’s announcement follows yesterday’s stronger-than-expected weekly export sales, which showed net corn sales at marketing-year high of 2.1 MMT.
• Ukraine is likely to reduce its area seeded to corn, sunseeds and rapeseed this year and replace it with buckwheat, oats, millet and peas, reflecting greater emphasis on food for its population and armed forces, the country’s agriculture producers' union said. Farmers will start planting crops in the safe areas of the country as soon as possible.
• May corn futures fell as low as $7.44 earlier in the session before rebounding but are still down from $7.54 1/4 at the end of last week. Prices may extend this week’s consolidation trade, though a resumption in wheat’s slump could leave corn vulnerable to further downside.
• Initial support in May corn is seen at the 10-day moving average of $7.38 3/4 and this week’s low at $7.28 3/4. Stiff resistance is seen at the March 3 high of $7.60, followed by the contract high at $7.82 3/4.

Soybeans are 12 to 15 cents lower and nearby soymeal is down $9 to $11 at midmorning, while soyoil futures is mostly higher.

• Soybean futures fell in the wake of reports of beneficial rain in dry areas of South America, but remain underpinned by strong exports. A resurgence in crude oil futures is supporting soyoil.
• China extended a string of U.S. soybean purchases that began in late January. USDA reported daily soybean sales of 264,000 MT for delivery to China during 2022-23. Since Jan. 28, USDA has reported a combined 6.84 MMT of soybean sales to China or “unknown destinations,” a more than 10-fold increase from the previous month.
• China sold 59,452 MT of the 71,126 MT of state-owned soybean reserves put up for auction, according to Sinograin. The state stockpiler also sold 10,172 MT, or 71%, of the rapeseed oil reserves offered. It previously sold 126,891 MT of soyoil from reserves. Sinograin will auction 295,596 MT of imported soybeans from reserves next Monday.
• May soybeans fell as low as $16.65 1/4 before curbing losses and are up from $16.60 1/2 at the end of last week. A brief push above $17.00 around mid-week faded quickly and the market may extend sideways trade as traders monitor the Russia/Ukraine war and export activity.
• Initial support in May soybeans is seen at the 20-day moving average around $16.44 and this week’s low at $16.34 1/2. A close above resistance at the March 1 of $16.97 would have bulls targeting the contract high at $17.59 1/4.

Wheat futures are 7 to 20 cents higher after erasing overnight declines.

• Wheat futures rebounded from overnight weakness as concerns over disruption from Russia’s invasion of Ukraine persisted. Overnight declines were attributed in part to reports Russian President Vladimir Putin said there had been some progress in Moscow’s talks with Ukraine.
• The wheat market remains extremely volatile as the continued closure of Ukraine’s ports and threats to the country’s crops casts uncertainty over global supplies.
• May SRW wheat filled the March 3 gap as the most-active contract fell as low as $10.43 1/4, leaving only a small gap created March 2 to be filled.

Cattle futures are solidly higher at midmorning, led by feeders.  

• Live cattle rebounded in corrective trade following yesterday’s declines. Weakness in corn boosted feeder futures.
• USDA-reported live steers averaged $138.12 this week through yesterday morning, down $2.49 from last week and on track for a second consecutive weekly drop.
• Choice beef cutout values rose $1.24 yesterday to $253.94 but movement was light at 106 loads, indicating retailers are still reluctant buyers, especially on days when prices firm. Choice cutouts are down from $254.33 at the end of last week.
• April live cattle rose as high as $137.45 and are up from $135.775 at the end of last week, on track for the contract’s first weekly gain in the past four. Key support is seen at $133.50, a six-month low posted March 4.

Lean hog futures are sharply higher in most contracts.

• Hog futures surged behind a technical bounce from sharp declines yesterday and cash market resurgence.
• The CME lean hog index firmed 65 cents to $99.91, a six-month high.
• Pork cutout values fell $3.54 yesterday to $104.20, led by a drop of nearly $15 in hams. The wholesale benchmark is still up from $103.99 at the end of last week.
• April lean hogs rose as high as $103.325, up from $100.45 at the end of last week.