Market Snapshot | May 27, 2022

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Corn futures are 12 to 14 cents higher at midmorning, led by the July contract.

Soy complex futures are mixed, with nearby soybeans up about 17 cents and soymeal up more than $5, while soyoil is lower.

Wheat futures erased overnight losses and turned higher, led by gains of 24 to 26 cents in SRW and spring wheat.

Live cattle futures are firmer and trading in narrow ranges at midmorning while feeders are weaker.

  • Live cattle futures are up slightly in consolidation trade ahead of the long holiday weekend. Continued weakness in cash prices likely will limit the upside.
  • USDA-reported live steers averaged $138.46 for the week through Thursday morning, down from last week’s average of $140.25. Packers slowed cattle purchases this week after aggressively buying the past two months.
  • Choice beef cutout values rose $1.04 Thursday to $263.97 on strong movement of 134 loads. August live cattle rose 7.5 cents Thursday to $132.60, up from $131.55 at the end of last week.
  • August live cattle rose as high as $132.95 before fading but is still up from $131.55 at the end of last week. Initial resistance at $135.55 is backed by the 40-day moving average near $136.10. Support is seen at the March 4 low of $132.625 and at $131.00.

Hog futures are mostly firmer, with only the nearby June contract down.

  • Lean hog futures extended a recent rally, rising for the fourth day in five and posting a four-week high behind continued strength in cash fundamentals.
  • The CME lean hog index is up another 53 cents to $104.40 (as of May 25), the seventh straight daily gain and the highest since late August. Summer-month futures hold premiums of about $7 to the index, suggesting traders feel the cash market will continue to strengthen seasonally into summer.
  • Strength in wholesale pork may is also supporting futures. Pork cutout values gained $1.06 Thursday to $108.13, near a four-week high posted earlier this week. Movement remained relatively light at 233.5 loads.
  • July lean hogs reached $112.85, the contract’s highest intraday price since April 29, and is on track to post a sharp gain for the week after ending last week at $109.00.
 

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