Market Snapshot | August 4, 2022

Corn futures are 9 to 11 cents higher at midmorning.

Corn futures extended Wednesday’s late rebound in a corrective bounce from sharp losses early this week. Rallying soybeans lent spillover support.
Much of the Midwest will receive multiple rounds of timely rain through Monday that should prevent excessive dryness and significant crop stress through at least late next week, World Weather Inc. said. Exceptions to favorable crop conditions are still expected from southeastern South Dakota and southwestern Minnesota to eastern Nebraska and much of western Iowa.
A Turkish bulk carrier is expected to arrive in the Ukrainian Black Sea port of Chornomorsk on Friday and will be the first vessel to come into a Ukrainian port since the war began. The Kremlin said on Thursday the deal to unblock Ukraine’s grain exports from the Black Sea was not a “one-time mechanism,” and that it hoped it would continue to work effectively.
USDA reported net U.S. corn export sales for 2021-22 totaled 57,900 MT during the week ended Aug. 4, down 62% from the previous week but up 31% from the average for the previous four weeks. For 2022-23, net weekly sales totaled 256,700 MT, up from 193,700 MT the previous week and within trade expectations ranging from 100,000 to 400,000 MT.
December corn futures extended gains after pushing above the 20-day moving average at $6.00 but remain down from last week’s close at $6.20.

Soybean futures are up 33 to 35 cents and soymeal is up around $18, while soyoil is mixed.

A surge in soymeal is helping soybean futures fuel a corrective rebound following three days of sharp losses. Traders continued to watch Midwest weather that may still trim yield potential in some areas.
Crop stress and declines in yield potential “may begin to expand into a larger part of the Midwest during the second half of August if rain does not increase,” World Weather said.
USDA reported net weekly soybean sales reductions of 11,000 MT for 2021-22, down 81% from the previous week and down 90% from the prior four-week average. A sales increase of 124,800 MT for China was more than offset by reductions of 229,500 MT for “unknown destinations.” That marked five of the past six weeks in which there were net old-crop sales reductions.
For 2022-23, net sales totaled 410,600 MT, primarily for unknown destinations (154,000 MT) and China (144,000 MT). New-crop sales were within expectations ranging from 200,000 to 700,000 MT.
Malaysia's palm oil inventories at the end of July may have risen to the highest in eight months due to improving production and soaring imports, based on a Reuters survey. Malaysian palm oil futures fell 1.2% on projections for higher inventories.
November soybeans pushed back above the 10-day moving average at $13.92 3/4 but remain down sharply from last week’s close at $14.68 1/2.

Wheat futures are higher, led by gains of around 25 cents in HRW and HRS contracts.

Winter wheat futures rose for the first time in five sessions in a corrective rebound from Wednesday’s drop to six-month lows.
USDA reported net weekly wheat sales totaling 249,900 MT for 2022-23, down 39% from the previous week and down 55% from the prior four-week average. Sales were at the low end of expectations ranging from 200,000 to 550,000 MT.
Taiwan purchased 50,910 MT of U.S. milling wheat. Japan purchased 122,103 MT of wheat from its weekly tender, including 54,680 MT of U.S., 32,410 MT of Canadian and 35,013 MT of Australian. Iran purchased between 180,000 and 240,000 MT of milling wheat likely to be sourced from Russia.
September SRW wheat rose as high as $7.80 but remains under the 10-day moving average at $7.86 1/2 and last week’s close at $8.07 3/4.

Live cattle futures fell in a corrective pullback from Wednesday’s rally to three-month highs, though a stronger-than-expected cash market and outlook for tighter supplies is underpinning the market.
Live steers averaged $139.82 through Wednesday morning, about even with last week’s average and defying expectations earlier this week that cash price would fall a fifth straight week.
Choice beef cutout values fell 52 cents Wednesday to $267.94 on movement of 106 loads.
USDA reported net weekly U.S. beef sales of 12,000 MT for 2022, down 52% from the previous week and down 30% from the average for the previous four weeks.
October live cattle failed to generate much followthrough buying interest at the open and so far today have fallen short of a test of Wednesday’s intraday high at $144.125.

Hog futures are higher, led by October and December contracts.

Lean hog futures bounced back sharply from a brief opening dip as the market continues to draw support from cash market strength.
The CME lean hog index is down 63 cents today to $120.94 (as of Aug. 2), its second straight daily decline after a nearly month-long rally, but remains near a 14-month high.
Pork cutout values fell $5.53 Wednesday to $125.49, led by a drop of more than $26 in bellies.
Net weekly pork sales totaled 31,000 MT, up 43% from the previous week and up 35% from the prior four-week average. Increases were primarily for China (16,800 MT, including decreases of 300 MT).
October lean hogs briefly fell under the 20-day moving average around $94.95 but quickly rebounded to push back above the 10-day moving average at $95.97.

Tags