Market Snapshot | April 14, 2022

Corn futures are higher at midmorning, led by gains of 6 to 8 cents in old-crop contracts.

• Nearby corn futures posted contract highs for the second day in a row, sustaining overnight gains after USDA reported strong export sales. New-crop December futures also notched a contract high.
• USDA reported net U.S. corn sales for the week ended April 7 of 1.333 MMT for 2021-22, up 70% from the previous week and up 26% from the average for the previous four weeks. China was a featured buyer at 671,500 MT. For 2022-23, net sales totaled 403,100 MT. Weekly sales were within trade expectations. Sales were expected to range from 850,000 MT to 1.7 MMT for 2021-22 and 300,000 to 800,000 MT in 2022-23.
• Ukraine’s corn exports could fall to 17 MMT in 2021-22 following Russia’s invasion, a senior agriculture official said Wednesday, down from 23.1 MMT the previous year. Sunflower oil exports over the same period could drop to 3.4 MMT, down from 5.3 MMT.
• May corn reached a contract high at $7.92 3/4, up from $7.68 3/4 at the end of last week, while December corn reached $7.39, a contract high for the fifth straight day. Corn’s strong performance this week may have bulls targeting $8.00, reached by the March contract earlier this year.

Soy complex futures are mixed, with May soybeans firmer but deferreds lower; soymeal is also mixed, while soyoil is firmer.

• Nearby soybeans faded from overnight advances and are heading for a weekly loss despite fresh export business from China. New-crop beans are under pressure on prospects for higher U.S. acreage.
• USDA reported a daily sale of 132,000 MT of soybeans for delivery to China during the 2021-22 marketing year. Today’s announcement marked China’s first daily soybean purchase since a 132,000-MT sale on April 6.
• Net weekly U.S. soybean sales totaled 548,900 MT for 2021-22, down 31% from the previous week and down 41% from the prior four-week average. China was a featured buyer at 435,500 MT, including 121,000 MT switched from “unknown destinations.” For 2022-23, net sales totaled 458,000 MT. Sales were expected to range from 300,000 MT to 1.0 MMT for 2021-22 and 100,000 to 500,000 MT for 2022-23.
• May soybeans reached $16.92 1/2 overnight before slipping and are down from $16.89 at the end of last week. The contract faces initial resistance at the March 1 high of $16.97 1/2, followed by $17.00 and $17.15.

Winter wheat futures are lower after fading from gains to multi-week highs overnight while spring wheat is mostly higher.

• Winter wheat futures fell in a profit-taking correction after gaining four consecutive sessions. Ukraine war-related supply disruptions and poor U.S. crop conditions continue to underpin prices.
• Poor weekly export sales numbers underscored U.S. wheat’s uncompetitive prices on the global markets. USDA reported net weekly wheat sales totaling 96,100 MT for 2021-22, down 39% from the previous week and down 30% from the prior four-week average.
• For 2022-23, net sales totaled 225,200 MT. Net sales were expected to range from 100,000 to 250,000 MT for 2021-22 and 100,000 to 400,000 MT for 2022-23.
• Taiwan bought 47,120 MT of U.S. milling wheat. Japan purchased 114,645 MT of milling wheat in its weekly tender, including 61, 620 MT U.S., 22,640 MT Canadian and 30,385 MT Australian. Jordan tendered to buy 120,000 MT of optional origin milling wheat.
• July SRW wheat rose overnight to $11.35 1/4, the highest intraday price since $11.39 3/4 on March 22, before dropping to mild losses. The most-active contract is still up from $10.58 1/4 at the end of last week.

Cattle futures are mildly lower at midmorning.

• Live cattle futures fell under corrective profit-taking following three straight days of gains. Cash and wholesale beef strength is limiting losses.
• Gains in corn are weighing mildly on feeder cattle.
• More cash cattle traded at $1 higher prices around $139 in the Southern Plains on Wednesday, while trade in the northern dressed market occurred in the $225 to $227 range, up $2 to 4 from last week.
• Choice grade cutout values fell $1.11 yesterday to $272.36 but are still near an eight-week high. Movement was strong at 149 loads, indicating stepped-up retailer buying in preparation for spring grilling.
• USDA reported net weekly beef sales of 17,200 MT for 2022, up 23% from the previous week but down 18% from the prior four-week average.
• June live cattle fell as low as $135.90 but are still up from $133.825 at the end of last week.

Hog futures are lower, led by summer-month contracts.

• Lean hog futures are under pressure from continued weakness in cash fundamentals, despite a recent jump in wholesale pork prices.
• The index CME lean hog up 9 cents today to $99.19, its first gain in nine days. But futures traders will need to see further gains in the benchmark before they’re convinced a low is in place. April hogs, which expire today, are currently about 63 cents above the index.
• Pork cutout values rose $1.73 yesterday to $108.53, near a three-week high. Movement totaled 256.44 loads.
• Net weekly pork sales totaled 24,000 MT for 2022, down 42% from the previous week and down 26% from the prior four-week average.