Market Snapshot | June 9, 2022

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Corn futures are higher at midmorning, led by a gain of about 16 cents in the July contract.

Soy complex futures are mixed, with nearby soybeans up around 35 cents and nearby soymeal up about $12, while soyoil is lower.

  • Nearby soybeans rose for a fourth consecutive session and neared a 10-year high on fresh export demand and concerns over delayed planting in the northern Midwest.
  • USDA reported a daily sale of 143,000 MT of soybeans for delivery to “unknown destinations,” including 500 MT for 2021-22 marketing year and 142,500 MT for 2022-23. The announcement marked the first USDA-reported soybean sales since June 2.
  • Net weekly U.S. soybean sales totaled 429,900 MT for 2021-22, nearly quadruple the previous week’s 111,600 MT tally and up 41% from the prior four-week average. Top buyers included China (128,900 MT, including decreases of 10,900 MT). For 2022-23, net soybean sales totaled 595,300 MT, with top buyers including Pakistan (297,000 MT) and China (261,000 MT). Both old-crop and new-crop sales were on the high end of expectations, which ranged from 100,000 to 500,000 MT and 200,000 to 700,000 MT, respectively.
  • Malaysian palm oil futures fell sharply after top producer Indonesia began an effort to accelerate exports and key buyer China re-imposed Covid-19 lockdowns in Shanghai.
  • July soybeans posed a contract high at $17.81 1/2, surpassing Wednesday’s high and the highest intraday price for a nearby contract since September 2012. Upside targets include the all-time high of $17.94 3/4, also posted in September 2012.

Wheat futures are 6 to 10 cents lower at midmorning across all three markets.

Live cattle and feeder cattle are mostly firmer at midmorning.

  • Live cattle futures modestly extended Wednesday’s rally to six-week highs amid signs the cash market is firming following a four-week slide.
  • Cash cattle trade started around $136 in the Southern Plains and $141 in Nebraska Wednesday, up about $1 from last week in both locations. The firmer tone prompted most feedlots held out for even higher prices.
  • Strength in wholesale beef is also supportive to futures. Choice cutout values gained 32 cents Wednesday to $271.74, the highest daily average since April 15. Movement was a relatively strong 121 loads.
  • USDA reported net weekly U.S. beef sales of 17,700 MT for 2022, down 1% from the previous week but up 21% from the prior four-week average. 
  • August live cattle reached $137.95, slightly above Wednesday’s high, but generated little following buying interest.

Hog futures are sharply lower at midmorning.

  • Lean hogs futures extended Wednesday’s downturn and fell near three-week lows amid ideas a recent surge in the cash market has run its course.
  • The CME lean hog index fell 32 cents to $107.48 (as of June 7), halting a nearly uninterrupted climb since the end of May. With summer-month contracts at a discount to the cash index, traders appear to believe the cash market has peaked.
  • Pork cutout values plunged $3.36 Wednesday to $104.47, near a three-week low and driven by a drop of nearly $28 in bellies. Movement was light at 268 loads.
  • Net weekly U.S. pork sales totaled 16,700 MT for 2022, down 48% from the previous week and down 44% from the prior four-week average. 
 

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