Market Snapshot | April 13, 2022

Corn futures are firmer at midmorning after rebounding from overnight declines.

• Corn futures came under pressure overnight from profit-taking after the market reached five-week highs yesterday but have trimmed declines. New-crop December is firmer after posting a contract high for the fourth straight day overnight.
• U.S. President Joe Biden yesterday unveiled plans to extend the availability of E15 during the summer to curb soaring fuel costs and to cut reliance on foreign energy sources.
• U.S. ethanol production averaged 995,000 barrels per day (BPD) during the week ended April 8, down 8,000 bpd from the previous week but 5.7% above the comparable week last year. Ethanol stocks fell a sharp 1.1 million barrels to 24.803 million barrels.
• May corn is trading inside Tuesday’s range after gaining 11 3/4 cents yesterday to $7.76 1/4, a lifetime-high settlement for the contract. A break above yesterday’s high may have bulls targeting the $7.82 3/4 contract high reached March 4. December corn touched $7.34 overnight, a contract high for the fourth day in a row.

Soy complex futures are mixed, with old-crop soybeans down 11 to 13 cents and nearby soymeal down around $6, while soyoil is firmer.

• Soybeans are talking pressure from weakness in corn and wheat markets, while nearby soyoil has climbed near a three-week high behind strength in crude oil and palm oil.
• China imported 6.4 MMT of soybeans in March, down 18.3% from last year, as poor crush margins and delays in shipments from Brazil slowed arrivals. Through the first three months of the year, China’s soybean imports stood at 20.3 MMT, down 4.2% from the same period last year.
• Grain truckers in Argentina extended their strike that started Monday, bringing grain transportation to a virtual halt. The indefinite strike has not yet hit exports because the ports have large reserves of grains, but a prolonged protest could affect shipments.
• Brazil's soybean exports may reach 12.023 MMT in April, according to Anec, up 906,000 MT versus the agency's previous forecast.
• Initial support for May soybeans is seen at the 50-day and 10-day moving averages around $16.38 and $16.36 1/2, respectively.

Wheat futures are higher after erasing overnight losses, with spring wheat leading gains.

• Winter wheat futures rebounded from overnight losses amid ongoing concerns over supply disruptions from the Russia/Ukraine war and poor crop conditions in the U.S. Plains.
• France’s ag ministry lowered its forecast for French 2021-22 wheat exports outside the European Union by 200,000 MT to 9.5 MMT, partly reversing a 3-MMT upward revision to the ministry’s forecast last month.
• China’s winter wheat crop improved more than expected after a poor start last fall. The percentage of first and second grade wheat was on par with normal levels, the country’s ag ministry said.
• Egypt bought 350,000 MT of wheat, including 240,000 MT from France, 50,000 MT from Bulgaria and 60,000 MT from Russia.
• Algeria bought an estimated 80,000 to 100,000 MT of optional origin milling wheat, though that figure could change. Japan is seeking 70,000 MT of feed wheat and 40,000 MT of feed barley.
• July SRW wheat is trading within yesterday’s range after posting a three-week intraday high at $11.25 yesterday. A push above yesterday’s high may have bulls targeting the late March high around $11.40.

Cattle futures are higher at midmorning, led by gains in feeders.

• Feeder cattle are supported by weakness in the corn market.
• Live cattle futures extended yesterday’s gains and neared two-week highs behind reports of stronger cash prices and continued gains in wholesale beef.
• Some cash cattle traded yesterday around $139 in the Southern Plains, about $1 higher than last week’s trade in the region, and firmer bids were also reported in the northern market. With packers raising cash bids, most feedlots are still holding out in hopes of even firmer prices.
• Choice cutout values gained $1.36 yesterday to $273.47, near a two-month high. Movement totaled 115 loads, a pick-up from recent days.
• June live cattle climbed to $137.10, the highest intraday price since $137.875 on April 1. Further strength, including a push above resistance at the 50-day moving average of $137.545, may have bulls aiming for the March high at $138.525.

Hog futures are lower, led by deferred contracts.

• Lean hog futures failed to sustain followthrough buying interest from yesterday’s rally as the market remains burdened by weaker cash fundamentals.
• The CME lean hog index is down another 53 cents today to $99.10 (as of March 11), the ninth straight daily decline totaling nearly $4. April hogs, which expire Thursday and are settled against the cash index on April 19, are currently about 55 cents above the index.
• Pork cutout values rose 16 cents yesterday to an average of $106.80, the highest daily average since March 31. Movement totaled 305 loads, stronger than recent days.
• June lean hogs are trading inside yesterday’s range, which included an intraday high at $119.10, the highest since April 4.