Market Snapshot | March 21, 2022

Corn futures are more than 20 cents higher in old-crop contracts at midmorning.

• Nearby corn futures built on overnight strength behind spillover from a rally in wheat markets and no signs of let-up in Russia’s war with Ukraine.
• USDA reported 1.466 MT (57.7 million bu.) of corn inspected for export during the week ended March 17, up from 1.147 MMT the previous week. Expectations ranged from 1.14 MMT to 1.6 MMT.
• Large speculators in mid-March boosted their bullish bets in the corn market to the highest level since late last year. The managed money net long in corn rose 4,125 futures and options contracts during the week ended March 15 to 372,909 contracts, the highest since the week ended Dec. 28, according to the Commodity Futures Trading Commission.
• May corn rose as high as $7.64, the contract’s highest intraday price since $7.67 1/2 on March 14. A push above last week’s high may have bulls targeting the contract high of $7.82 3/4, posted March 4. Initial support comes in at last week’s low of $7.26 3/4.

Nearby soybeans are over 35 cents higher, nearby soymeal is up more than $4 and nearby soyoil is up over 180 points.

• Nearby soybeans extended overnight gains and pushed back above $17.00 behind rallies in wheat and crude oil. Nymex crude surged more than $6.
• USDA reported 544,986 MT (20 million bu.) of soybeans inspected for export during the week ended March 17, down from 796,785 MT the previous week. Expectations ranged from 500,000 to 850,000 MT.
• Brazil had harvested 69% of its 2021-22 soybean crop as of March 17, compared to 59% at the same time last year, agribusiness consultancy AgRural said today.
• Exports of Malaysian palm oil products for March 1-20 were down around 8% from Feb. 1-20, Reuters reported. Malaysia has maintained its April export tax for crude palm oil at 8%, a notice on the Malaysian Palm Oil Board website showed.
• The managed money net long in soybean futures and options fell for the third straight week, dropping 1,024 contracts during the week ended March 15 to 170,690 contracts, according to CFTC data.
• May soybeans rose as high as $17.10, the contract’s highest intraday price since $17.34 on March 9. A push above the March 9 high, the high for the month, may have bulls targeting the contract high of $17.59 1/4, posted Feb. 24.

Wheat futures are sharply higher, led by gains of more than 70 cents in nearby SRW contracts.

• Wheat futures extended overnight gains amid ongoing disruptions from the Russia/Ukraine war. Russia is exporting more wheat via its Black Sea ports as Azov Sea routes remain restricted, while domestic wheat prices rose last week because of the weakening ruble.
• Parts of the U.S. HRW wheat belt are expected to receive 0.5 to 1.5 inches of moisture this week, with heavy snow possible in southwestern Kansas into the northern Texas Panhandle and southeastern Oklahoma. The moisture should ease long-term dryness and improve early-season crop potential.
• USDA reported 330,632 MT (12.1 million bu.) of wheat inspected for export during the week ended March 17, up from 307,218 MT the previous week. Expectations ranged from 275,000 to 500,000 MT.
• Large speculators shifted to a net long in SRW wheat for the first time since early December as prices rallied earlier this month. The managed money net long rose 2,737 futures and options contracts to 22,945 contracts as of March 15, the largest since mid-August.
• China sold 522,804 MT of state-owned wheat reserves out of 524,804 MT put up for auction last week – 99.6% of the total. But the average price declined slightly from the two previous weeks to 2,958 yuan ($465) per MT.
• May SRW wheat reached $11.48 3/4. May HRW futures reached $11.48 1/2 after settling Friday at $10.70 1/2, down 18 3/4 cents for the week.

Live cattle are mixed, while feeders are lower.

• Live cattle futures extended last week’s gains and reached the highest levels in nearly three weeks behind renewed strength in the cash market. But have set back slightly to a mixed tone at midmorning.
• Feeder cattle futures are under pressure from a continued rally in corn.
• USDA-reported live steers averaged $138.55 through Friday morning, up 25 cents from the previous week’s average. April live cattle’s roughly $2 premium to cash suggests optimism is already built into the market.
• Wholesale beef prices extended a recent upturn, indicating improving retail demand. Choice beef cutout values rose $1.11 Friday to $258.16, the highest daily average since Feb. 25.
• June live cattle reached $137.75, the contract’s highest intraday price $137.90 on March 2. Initial resistance is seen at the 50- and 40-day moving averages around $138.05 and $138.25, respectively.

Lean hog futures are sharply higher after surging near daily trading limits.

• Hog futures are up sharply behind strengthening cash fundamentals and corrective buying following a soft close to last week’s trading.
• Nearby April futures’ discount to the CME lean hog index is also encouraging buyers. The index (as of March 17) jumped 59 cents to $101.36, the highest since Aug. 31.
• Wholesale pork strengthened last week after tumbling during the first half of March. Pork cutout values ended last week at $104.46, up from $102.55 a week earlier.
• June lean hogs rose as much as $4.30, just under the $4.75 daily limit, to an intraday high at $120.475. Continued strength may have bulls targeting the contract high of $122.00 posted March 16. Initial support comes in at last week’s low of $115.55.