Market Snapshot | June 21, 2022

Corn futures are down sharply at midmorning, led by declines of around 25 cents in new-crop contracts.

• December corn fell to a two-week low on spillover pressure from a continued slide in the wheat market and prospects for relief from recent heat in the Midwest.
• Rapid drying will continue in much of the Midwest through Saturday as temperatures exceed 90 degrees Fahrenheit and most areas will see little to no rain of significance before a “welcome period of milder temperatures” moves in Sunday through next week, World Weather Inc. said today
• Traders await USDA’s next weekly crop condition ratings after today’s close. Last week’s ratings showed slight deterioration in the crop, with the combined “good” to “excellent” rating falling a point to 72%. The crop was 97% planted, matching the five-year average.
• USDA reported 1.184 MMT (46.6 million bu.) of corn inspected for export during the week ended June 16, down from 1.221 MMT the previous week. Expectations ranged from 600,000 MT to 1.300 MMT.
• China imported only 126,727 MT of corn from Ukraine in May, down sharply from 695,585 MT in April and 1.26 MMT last year. China imported 1.9 MMT of corn from the U.S. in May, virtually the same amount as last year.
• July corn futures gapped lower at the opening of overnight trade and fell as low as $7.59 1/4, while December fell as low as $7.00 1/2, the contract’s lowest intraday price since June 7.

Soy complex futrues are mostly lower, with soybeans down 7 to 12 cents and nearby soymeal down more than $4, while soyoil is mixed.

• Soybean futures fell near three-week lows on spillover from slumping corn and wheat and an outlook for crop-friendlier weather in the Midwest.
• USDA reported 427,344 MT (15.7 million bu.) of soybeans inspected for export during the week ended June 16, down from 608,116 MT the previous week. Expectations ranged from 300,000 to 625,000 MT.
• USDA’s condition ratings will be closely studied after the three-day weekend. USDA reported 70% of the crop in “good” to “excellent” condition as of June 12, while the crop was 88% planted.
• Indonesia had issued permits to export 867,682 MT of palm oil products under its Domestic Market Obligation (DMO) program as of Monday. Separately, the government issued export permits for 535,998 MT of palm oil products under the export acceleration program where a quota of 1.16 MMT was allocated.
• July soybeans gapped lower and fell as low as $16.76, the contract’s lowest intraday price since June 1. November soybeans fell to $15.06, near a three-week low.

Wheat futures are sharply lower, led by declines of 40-plus cents in HRW contracts.

• Winter wheat futures tumbled to the lowest levels in over two months as accelerating harvest pressure fueled further long liquidation.
• Futures’ weakness indicates traders expect a good jump in harvest progress last week. A week ago, USDA reported spring wheat planting 94% done as of June 12, up from 82% the week prior, while the winter wheat harvest was 10% complete, up from 5% a week earlier.
• USDA reported 331,328 MT (12.2 million bu.) of wheat inspected for export during the week ended June 16, down from 411,916 MT the previous week. Expectations ranged from 300,000 to 500,000 MT.
• The impact of a heatwave on cereal crops in France, the European Union’s biggest grain producer, should be limited and was not a cause for alarm, the country’s agriculture minister said Monday.
• Saudi Arabia purchased 300,000 MT of wheat from unspecified origins. Algeria tendered to buy a nominal 50,000 MT of optional origin milling wheat. Japan is seeking 168,330 MT of wheat in its weekly tender.
• Large speculators in mid-June reduced their bullish bets in the SRW wheat market to the lowest level in 3 1/2-months, data from the Commodity Futures Trading Commission showed.
• July SRW wheat fell as low as $10.00 3/4, the contract’s lowest intraday price since April 4.

Cattle futures are higher at midmorning, led by the feeder market.

• Live cattle futures are higher behind expectations last week’s cash strength will extend into this week. Supplies of market-ready cattle were already tight and recent heat-related death losses further trims the immediate supply of cattle.
• Feeder cattle are also higher, boosted by sharp declines in corn. Feeder steers traded steady to $2.00 higher and feeder heifers $2.00 to $4.00 higher at the Oklahoma City feeder cattle auction amid “very good” demand, according to Reuters.
• Live steers averaged $143.67 last week, up from the previous week’s average of $140.14.
• Choice cutout values rose 24 cents Monday to $266.50 after falling near a three-week low at the end of last week.

Hog futures are mostly higher, led by strong gains in July and August contracts.

• Lean hog futures are higher behind strong cash fundamentals.
• The CME lean hog index rose 41 cents to $109.16, extending a surge to 10-month highs.
• Pork cutout values fell $2.74 Monday to $111.87, down from a four-month high above $114.00 posted at the end of last week.
• July lean hogs rose as high as $112.65, the contract’s highest intraday price since $113.20 on June 3.