10:30 Market Snapshot | March 28, 2022

Corn futures are around 8 to 10 cents lower at midmorning.

• Corn futures are lower on pressure from broad risk aversion in the markets to open the week. Traders are shedding risk amid increased Covid concerns in China as Shanghai will have rolling lockdowns as it conducts broad Covid testing.
• USDA reported 127,920 MT of corn sales to unknown destinations – 77,120 MT for 2021-22 and 50,800 MT for 2022-23. 
• Weekly corn export inspections totaled 1.607 MMT (63.3 million bu.). That was up from 1.497 MMT the previous weekly but down from 1.789 MMT this week last year. Traders expected corn inspections to total between 1 MMT and 1.665 MMT.
• Most of Brazil will see a good mix of rain and sunshine through the next two weeks that will be supportive of safrinha corn development with breaks between rounds of rain adequate to allow fieldwork to advance, according to World Weather Inc. It says safrinha corn will have plenty of moisture going through much of April.
• May corn traded as low as $7.40 1/2  this morning but remained well within the sideways trading range of the past three weeks. Support at the bottom of the range is at the March 16 low of $7.26 3/4 and the March 3 low at $7.22. Resistance is at least week’s high at $7.70 1/4 and the contract high at $7.82 3/4.

Soybeans have extended overnight losses to trade 30-plus cents lower in nearby contracts. Meal futures are $2 to $5 lower. May soyoil is more than 200 points lower.

• Soy complex futures are lower amid broad risk aversion to start the week, which is fueling fund selling.
• USDA reported daily soybean sales of 132,000 MT of soybeans to China for 2021-22. This followed old-crop soybean sales of the same amount to China last Friday and 558,200 MT to unknown destinations earlier last week.
• Weekly soybean export inspections totaled 628,819 MT (23.1 million bu.). That was up from 553,582 MT the previous week and 450,807 MT during the same week last year. Traders expected soybean inspections between 500,000 and 800,000 MT.
• Argentina will see mostly dry weather the next two weeks allowing for fieldwork to advance well around two rounds of rain that, along with soil moisture in place today, is expected to favorably support the needs of most crops with some exceptions in west-central and southwestern areas. 
• Soyoil is being pressured by sharp losses in the crude oil market and a nearly 1% decline in Malaysian palm oil futures overnight.
• May soybeans fell as low as $16.76 but remained in the short-term choppy to higher pattern. Support is at the March 15 low of $16.38 and the Feb. 25 low of $15.79. Resistance is at last week’s high of $17.36 1/2 and the contract high at $17.59 1/4.

Winter wheat futures are trading 40-plus cents lower. Spring wheat is 30-plus cents lower.

• Wheat futures are being pressured by negative outside markets, as the U.S. dollar index is higher and commodities are broadly lower.  
• Wheat export inspection totaled 341,191 MT (12.5 million bu.) for the week ended March 24. That was up slightly from the previous week and higher than 307,167 MT for this week last year. Traders expected wheat inspections between 300,000 and 500,000 MT.
• A couple of weather disturbances will move across U.S. HRW areas this week with shower activity, according to World Weather. Enough precipitation is expected in the east for some increase in topsoil moisture; however, a change in drought status in the west is not expected. The precipitation will support some additional crop development and followup moisture will be very important later in April.
• May SRW wheat fell as low as $10.47 but remained well within the sideways range of the past three-plus weeks. Near-term support is the March 17 low at $10.31 3/4. Near-term resistance is last week’s high at $11.69 1/4.

Live cattle futures are mildly lower. Feeder cattle are mixed.

• Live cattle are being pressured by outside markets, as commodities and the stock market are lower, while the U.S. dollar index is sharply higher.
• Last Friday’s Cattle on Feed Report is also mildly weighing on the market. It showed a record number of cattle in feedlots as of March 1 and up 1.4% from year-ago, which was slightly greater than anticipated. February placements rose 9.3% and marketings increased 4.9%.
• Boxed beef prices were mixed on Friday, with Choice up 23 cents and Select down 45 cents. Movement was light at just 76 loads.
• As of last Friday morning, the average cash cattle prices was $139.68, which was up 58 cents from the previous week’s average.
• Heavy pressure on corn is helping limit seller interest in feeder cattle.

Lean hog futures are slightly to sharply higher at midmorning.

• Hog futures opened lower amid pressure from outside markets. But buyers surfaced on the lower open and have pushed futures to the a firmer tone.
• Support is coming from firming cash fundamentals.
• The CME lean hog index is up 75 cents (as of March 24) to $102.25, the highest level since Aug. 31. April lean hog futures are trading more than $5 above the cash index, signaling traders anticipate the cash market will continue to strengthen.
• The pork cutout value firmed $1.89 on Friday to $109.90, the highest level since the end of February. All cuts except ribs and hams were firmer. Retailers are gearing up for end-of-Lent features and the start of the grilling season.