Market Snapshot | May 26, 2022

Corn futures are mostly 2 to 6 to cents lower at midmorning but have recovered part of initial declines.

• Corn futures were under pressure overnight but trimmed declines as soybean and wheat prices rallied. Lackluster export sales and an outlook for favorable crop weather are weighing on corn.
• USDA reported net weekly U.S. corn sales of 151,600 MT for 2021-22, down 63% from the previous week, down 73% from the average for the previous four weeks and a marketing-year low. For 2022-23, net sales totaled 58,300 MT, with buyers including “unknown destinations,” at 36,800 MT.
• Expectations ranged from 150,000 to 500,000 MT for 2021-22 and 200,000 to 800,000 MT for 2022-23.
• July corn futures are trading withing Wednesday’s range after falling the day before to $7.55, the contract’s lowest intraday price since $7.45 1/2 on April 8.

Soy complex futures are higher, led by gains of around 40 cents in nearby soybeans and gains of about 170 points in nearby soyoil. Soymeal futures are up $5-plus

• Nearby soybeans futures bounced back from overnight declines and surged to five-week highs, supported by tight supplies and optimism over demand.
• Net weekly soybean sales totaled 276,800 MT for 2021-22, down 63% from the previous week and down 48% from the prior four-week average. For 2022-23, net sales totaled 443,000 MT, led by unknown destinations, at 284,000 MT.
• Expectations ranged from 200,000 to 800,000 MT for 2021-22 and sales of 100,000 to 600,000 MT for 2022-23.
• Soyoil futures are supported by a late reversal in palm oil during the Asian trading session and strong gains in U.S. crude oil futures.

Wheat futures erased overnight losses and turned higher, led by gains of 12 to 15 cents in spring wheat.

• Winter wheat futures rose in a corrective rebound after dropping near two-week lows overnight. The market had been under pressure from prospects Russia may allow food shipments out of Ukraine. Recent rains in winter wheat crop areas also pressured prices.
• Russia-based consultancy SovEcon says it doubts there will be a full-scale resumption of Ukrainian grain exports anytime soon.
• USDA reported net weekly wheat sales reductions of 2,300 MT for 2021-22, a marketing-year low. For 2022-23, net sales totaled 246,300 MT. Expectations ranged from negative-50,000 to 100,000 MT for 2021-22 and 100,000 to 400,000 MT for 2022-23.
• July SRW wheat overnight fell as low as $11.15, 1/2 cent above Wednesday’s low, before finding buying interest. Near-term technicals remain bearish after steep losses over the past week.

Cattle futures are lower and trading in narrow ranges at midmorning after fading from initial gains.

• Live cattle futures are under pressure from signs of a peak in the wholesale beef market and cash prices that are heading for a third straight weekly decline.
• USDA-reported live steers averaged $137.81 through Wednesday morning, down from last week’s $140.25 average.
• Choice beef cutout values fell 72 cents Wednesday to $262.93 but remain near a four-week high. Movement totaled 102 loads. Some industry sources believe the wholesale market has topped, with Choice values down over $30 from an April peak and down from over $309 a year ago.
• Net weekly U.S. beef sales totaled 20,000 MT for 2022, down 14% from the previous week but up 3% from the prior four-week average.
• Feeder cattle futures are sharply lower in most contracts, despite mild weakness in corn.

Hog futures are firmer after rebounding from initial weakness.

• Lean hog futures rose for the third day in four behind continued strength in cash fundamentals.
• The CME lean hog index is up another 84 cents to $103.87 (as of May 24), the sixth straight daily gain and the highest since late August.
• Pork cutout values fell $1.17 Wednesday to $107.07, led by a drop of nearly $8 in bellies. Movement was light at 244 loads. July lean hogs fell $1.10 Wednesday to $107.95, down from $109.00 at the end of last week.
• Net weekly pork sales totaled 36,700 MT for 2022, up 52% from the previous week and up 39% from the prior four-week average.