Market Snapshot | April 22, 2022

Corn futures are 11 to 13 cents lower at midmorning.

• Nearby corn futures extended overnight declines and fell to the lowest levels in over a week as traders disregarded fresh export news and booked profits from the market’s recent run to contract highs.
• USDA reported daily corn sales of 1.347 MMT to China – 735,000 MT for delivery during the 2021-22 marketing year and 612,000 MT for 2022-23. USDA also reported a daily sale of 281,000 MT of corn to Mexico (90,200 MT for 2021-22 and 190,800 MT for 2022-23).
• July corn broke below the 10-day moving average around $7.85 and has erased most of the contract’s advance this week.
• The most-active contract fell as low as $7.83 1/2, after ending last week at $7.83 3/4. A poor close today would likely foster ideas the market is establishing a near-term top.

Soy complex futures mixed, with nearby soyoil rallying to a record high while soybeans are down 19 to 24 cents and soymeal is down more than $10.

• Soybean futures erased an overnight climb to two-month highs as the market came under profit-taking pressure ahead of the weekend.
• Nearby soyoil futures surged to an all-time high at 84.85 cents after reports of Indonesia’s decision to ban palm oil exports starting April 28 exacerbated concerns over tight global vegetable oil supplies. Indonesian announced a halt to shipments of cooking oil and its raw material to control soaring domestic prices. Indonesia is the world’s biggest exporter of palm oil.
• Also today, USDA reported a daily sale of 144,000 MT of soybeans for delivery to Mexico (48,000 MT for 2021-22 and 96,000 MT for 2022-23).
• China’s National Grain Trade Center announced it will sell 500,000 MT of imported soybeans from its state reserves on April 29.
• July soybeans reached $17.34, the contract’s highest intraday price since the contract high of $17.41 posted Feb. 24, before retreating. The most-active contract is still up from $16.65 1/4 at the end of last week.

Wheat futures are mixed, with SRW lower, while HRW and HRS contracts are slightly firmer.

• Nearby SRW wheat fell for the fourth consecutive day and reached the lowest levels in over a week on continued profit-taking pressure and sagging U.S. exports.
• HRW futures are down for the week but still underpinned by poor crop conditions in the U.S. Plains. The HRW wheat belt may receive some “meaningful moisture” from showers expected over the next week, but “coverage may not be very great,” World Weather Inc. said today.
• Russia’s wheat export tax for April 27-May 5 will be $119.10 per metric ton, based on an indicative price of $370.20 per metric ton, up $8.40 from the previous week. The wheat export tax has risen for six consecutive weeks and is at its highest level.
• July SRW wheat overnight fell as low as $10.60 3/4, the lowest intraday price since April 8, and is down from $11.04 1/2 at the end of last week.

Live cattle futures are lower at midmorning while feeder cattle are mixed.

• Live cattle futures fell for the first session in the past four amid profit-taking pressure in the wake of sharp gains earlier this week. Traders await USDA’s Cattle on Feed Report after today’s close.
• The Cattle on Feed Report is expected to show U.S. April 1 feedlot inventories up 0.4% from a year earlier, while placements are expected to have dropped 7.8% year-over-year. Marketings declined an estimated 1.8% from year-earlier levels.
• USDA will also release its monthly Cold Storage Report after today’s close detailing frozen meat stocks at the end of March. Over the past five years, beef stocks have averaged a decline of 15.5 million lbs. in March.
• Cash cattle trade was stronger than expected this week. USDA-reported live steers so far this week averaged $142.89 through yesterday morning, up from last week's average of $141.02.
• Choice beef cutout values rose $1.35 yesterday to $270.17 on movement of 104 loads. The cash-led futures rally may be somewhat short-lived as slaughter numbers will build seasonally in coming months. 

Hog futures are up sharply, led by summer contracts.

• Lean hog futures are higher in a corrective bounce from sharp declines the previous three sessions. Continued strength in cash fundamentals is helping generate buying interest.
• The CME lean hog index is up 32 cents today to $101.25, the highest since April 4.
• Pork cutout values gained $1.71 yesterday to $110.20, a cent under a seven-week high posted April 15, but movement was light at 184 loads and packers typically struggle to generate retail interest above $110.00.
• USDA’s Cold Storage Report this afternoon will highlight pork stocks at the end of March. Over the past five years, pork stocks have fallen an average of 18.6 million lbs. during March.
• June lean hogs rose as high as $119.85, pushing above resistance at the 20-day moving average, and is poised to end with a weekly gain after closing at $118.475 last week.