Market Snapshot | June 15, 2022

Corn futures are higher at midmorning, led by a gain of about 9 cents in nearby July.

• Corn futures erased overnight declines and turned higher amid firm demand fundamentals and concerns over tight global supplies, though prices remain within the past week’s range.
• Another day of extreme heat will continue to grip the Midwest today, pushing temperatures near 100 degrees Fahrenheit. Temperatures will cool by the weekend before another heat wave develops early next week, World Weather Inc. said.
• “Warm to hot temperatures through the middle of next week will cause some stress to crops while a restricted rainfall pattern and rapid drying is expected the next two weeks,” World Weather said. “Although the topsoil will quickly dry down during the next two weeks, subsoil moisture will adequately support crop development and most crops should remain favorably rated during the period.”
• Ethanol production increased 21,000 barrels per day (bpd) to 1.060 million bpd for the week ended June 10. That was a 3.4% increase from the same week last year. Ethanol stock fell 439,000 barrels to 23.197 million barrels.
• July corn rose as high as $7.79 3/4 before hitting resistance at the 40-day moving average at $7.80.

Soy complex futures are mixed, with soybeans mostly higher with the exception of the July contract; nearby soymeal is up around $6.

• Nearby soybean futures fell near a two-week low overnight but have mostly recovered losses, while deferred contracts are slightly firmer.
• Members of the National Oilseed Processors Association (NOPA) are expected to report record May soybean crush of 171.6 million bu., according to a Reuters survey. If realized, that would be up 1% from April and 4.9% above May 2021.
• USDA reported the cancellation of sales of 100,000 MT of soybeans for delivery to “unknown destinations” during the 2021-22 marketing year.
• July soybeans overnight fell as low as $16.86 1/4, the contract’s lowest price since $16.81 1/4 on June 2.

Wheat futures are mixed, with SRW contracts firmer and HRW and spring wheat lower.

• SRW wheat rebounded from an overnight drop near two-week lows, though HRW futures remain lower as the market faces increasing harvest pressure.
• Romania faces a logistical challenge of “epic proportions” and requires new infrastructure to help transport Ukrainian grain to global markets, President Klaus Iohannis said.
• Kazakhstan will limit exports of wheat to 550,000 MT and wheat flour to 370,000 MT until Sept. 30, the country’s ag ministry said. Kazakhstan originally imposed export limits of 1 MMT of wheat and 300,000 MT of flour from April 15 to June 1.
• July SRW wheat overnight fell as low as $10.36 1/2, the contract’s lowest intraday price since June 3.

Live cattle and feeder cattle are sharply higher at midmorning.

• Live cattle futures are higher behind strength in early-week cash trade and concerns Plains heat will trim supplies.
• Cash cattle traded as high as $145 in the northern market and around $136 in the Southern Plains on Tuesday, up solidly from last week and a record price spread between the two regions, according to cash sources.
• The northern market, where supplies are tighter, was further supported by reports of death loss due to extreme heat.
• Choice beef cutout values fell $1.10 Tuesday to $269.44, the lowest daily average since June 3, but movement was strong at 135 loads.

Hog futures are mostly higher, led by strong gains in front-month July contracts.

• Lean hog futures are gaining supported from renewed cash market strength. The CME lean hog index is up 73 cents to $108.13 (as of June 13).
• Traders are narrowing the discounts July and August hogs hold to the cash index.  
• Pork cutout values sank $2.71 Tuesday to $108.67, but movement was strong at 356 loads.
• China will buy 40,000 MT of frozen pork for state reserves on June 17. Beijing has been stockpiling pork via weekly purchases to boost hog margins.