Market Snapshot | April 4, 2022

Corn futures are 11 to 15 cents higher in old-crop contracts.

• Corn futures climbed in a corrective bounce from last week’s losses, with fresh export business adding support. December corn reached $6.99 1/4, a contract high for the third session in a row.
• USDA reported daily sales of 1.084 MMT of corn to China, with 676,000 MT for delivery during the 2021-22 marketing year and 408,000 MT for 2022-23.
• Also today, USDA reported 1.528 MMT (60.2 million bu.) of corn inspected for export during the week ended March 31, down from 1.614 MMT the previous week. Expectations ranged from 800,000 MT to 1.65 MMT.
• Ukrainian grain exports in March were four times less than February levels due to the Russian invasion, Ukraine’s economy ministry said yesterday. March grain shipments overseas included 1.1 MMT of corn, 309,000 MT of wheat and 118,000 MT of sunoil, the ministry said.
• Ukraine’s projected spring crop plantings will probably total 13.4 million hectares this year, about 21% under 2021, the country’s ag ministry said on its website. Planting has begun in 21 of 24 regions, not counting annexed Crimea. That’s more than this time last year due to favorable weather.
• May corn futures are trading around the middle of last week’s range after falling 19 cents last week amid active bull spread unwinding. Initial support is seen at Friday’s low of $7.30 1/4, with further support at last week’s low of $7.13 1/2. Resistance includes last week’s high at $7.70.

Soybean futures are up 19 to 20 cents in old-crop contracts. November soybeans are around 27 cents higher. Meal is mostly $5 to $7 higher. Soyoil is 70 to 100 points higher.

• Nearby soybeans rebounded from an overnight drop to the lowest levels since mid-February. Strength in crude oil and wheat markets is supporting the soy complex.
• USDA reported 737,372 MT (27.1 million bu.) of soybeans inspected for export during the week ended March 31, up from 631,604 MT the previous week. Expectations ranged from 450,000 MT to 1.0 MMT.
• Large speculators in late March cut their bullish bets in soybean futures and options to the lowest level since Feb. 1, Commodity Futures Trading Commission data showed.
• May soybean futures bounced back after falling as low as $15.76 3/4 overnight, the lowest price since $15.51 1/2 Feb. 16. The lead contract tumbled $1.27 1/2 last week.

Wheat futures are firmly higher, led by gains of 23 to 25 cents in HRW and SRW contracts.

• Wheat futures are higher on reports of strong global demand as well as continuing concerns over Ukraine disruptions.
• Saudi Arabia purchased 625,000 MT of optional origin wheat. Iraq purchased 100,000 MT of wheat expected to be sourced from Germany. Jordan tendered to buy 120,000 MT of optional origin milling wheat.
• USDA reported 297,341 MT (10.9 million bu.) of wheat inspected for export during the week ended March 31, down from 343,087 MT the previous week. Expectations ranged from 250,000 to 550,000 MT.
• USDA will release its first winter wheat crop condition ratings this afternoon. Based on individual state ratings, the “good” to “excellent” rating should be in the mid-30% range.
• May SRW wheat sustained overnight gains but are trading within Friday’s range after posting a loss of $1.17 3/4 last week. Initial support is seen at Friday’s low and last week’s low at $9.82 1/2 and $9.72, respectively.

Cattle futures are lower at midmorning, led by sharp declines in feeders.

• Live cattle futures extended last week’s declines on carryover technical weakness.
• Feeder cattle futures are under pressure from strength in corn.
• Choice beef cutout values ended last week at $267.14, up $4.50 from a week earlier and near a six-week high.
• Retail beef demand has been light, but grocers likely will start buying beef more aggressively as they build inventories for features at the end of Lent and early in the grilling season.
• Cash cattle averaged about $139.36 last week, up from $138.95 the previous week.

Hog futures are sharply lower and trading near two-week lows.

• Hog futures extended last week’s losses on followthrough technical weakness and signs of erosion in cash markets.
• The CME lean hog index is down 50 cents today (as of March 31) to $102.63, but still near a seven-month high at $103.66 posted last week.
• Weakness in wholesale pork may also weigh on futures. Pork cutout values ended last week at an average of $103.60, down $6.30 from a week earlier and near a two-week low.
• June lean hogs fell as low as $116.85, the lowest intraday price since $116.325 on March 21.