Market Snapshot | May 12, 2022

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Corn futures are firmer at midmorning, led by gains of 2 to 4 cents.

Soy complex futures are mixed, with soybeans mostly lower and soyoil solidly weaker, while soymeal is firmer.

Wheat futures are higher, led by gains of mostly 8 to 11 cents in HRW and SRW contracts.

  • HRW wheat climbed to two-month highs and spring wheat posted fresh contract highs amid concerns over adverse weather and tighter global supplies.
  • Net weekly wheat sales totaled 14,100 MT for 2021-22, down 88% from the previous week, down 79% from the prior four-week average and a marketing year low. Net sales for 2022-23 totaled 124,300 MT. Sales were expected to range from 25,000 to 125,000 MT for 2021-22 and zero to 350,000 MT for 2022-23.
  • Strategie Grains cut its EU wheat export forecast for 2021-22 by 1.5 MMT from last month to 29.9 MMT, citing stronger-than-expected Russian shipments even amid Western sanctions. The consultancy raised its EU 2022-23 wheat export forecast by 500,000 MT to 30.8 MMT.
  • Japan purchased 196,560 MT of wheat in its weekly tender, including 87,640 MT U.S., 85,580 MT Canadian and 23,340 MT Australian.
  • July SRW wheat rose as high as $11.27. A push above this week’s high at $11.35 may have bulls targeting the April high at $11.43 1/2.
  • July HRW wheat touched $12.14 1/4, the contract’s highest intraday price since March 8. July spring wheat hit a contract high for the third day this week, reaching $12.65.

Live cattle and feeder cattle are moderately to sharply lower at midmorning.

  • Live cattle futures continue to face pressure from softening cash trade and concerns high retail prices are curbing beef demand.
  • Feeder cattle are under pressure from stronger corn prices, which remain near $8.00 on concerns over tight supplies and delayed planting.
  • Live steers averaged $141.43 through Wednesday morning, down about $2 from last week’s average. Cash sources reported limited demand from packers in the northern market, where tighter supplies in recent weeks pushed prices higher.
  • Wholesale beef prices remain near eight-week lows, with Choice cutout values down 16 cents Wednesday to $255.08. Movement was again strong at 185 loads, indicating that packers are cutting prices to spur retail buying.
  • USDA reported net weekly U.S. beef sales at 28,400 MT for 2022, a marketing-year high and up 95% from the previous week.
  • June live cattle are trading around the middle of this week’s range marked by Monday’s low at $131.025 and Wednesday’s high at $134.875.

Hog futures are solidly lower at midmorning and near four-month lows.

  • Lean hogs extended the market’s recent slump amid bearish technicals and concerns over slower pork demand.
  • The CME lean hog index rose 17 cents to $101.26, the highest since April 29. June hogs are trading at a discount to the cash index, which is rare for this time of year and illustrates heavily bearish sentiment is weighing on futures.
  • Pork cutout values fell 70 cents Wednesday to $99.49, the lowest daily average since Feb. 8, while movement remained relatively light at 262 loads.
  • USDA reported net weekly pork sales at 26,300 MT for 2022, up 10% from the previous week and up 14% from the prior four-week average.
  • June lean hogs fell as low as $98.775, the contract’s lowest intraday price since $98.15 on Jan. 14. Further weakness may have bears targeting the January low at $95.30.
 

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