Market Snapshot | August 8, 2022

Corn futures are mostly lower at midsession, with December futures down about 3 cents.

• Corn futures erased much of an overnight slump but remain mostly weaker. The market may see sideways trade continue in coming days as traders wait for USDA’s Crop Production and Supply and Demand Reports Friday.
• Weather continues to lean bearish for corn. Western and southern Iowa, northern Missouri, Nebraska and Kansas missed much of the rain that moved through the region, but more rains are pushing across areas of the Corn Belt this morning and rainfall will continue into Tuesday.
• Two more ships, carrying corn and soybeans, departed Ukrainian Black Sea ports on Monday, Turkey and Ukraine said, taking the total to 10 that have sailed under the new grain export deal. Ukraine’s infrastructure minister said Pivdennyi, the third Ukrainian port included in the deal, was finally up and running.
• USDA reported a sale of 105,000 MT of corn for delivery to Italy and 120,000 MT of corn for delivery to “unknown destinations,” both for 2022-23.
• USDA reported 555,620 MT (21.9 million bu.) of corn inspected for export during the week ended Aug. 4, down from 905,293 MT a week earlier and below expectations ranging from 700,000 to 1.15 MMT.
• Traders await USDA’s weekly crop condition updates after today’s close. A week ago, USDA reported 61% of the U.S. corn crop in “good” or “excellent” condition as of July 31, unchanged from the previous week.
• Large speculators increased their bullish bets in the corn market for the first week in the past seven, based on Commitments of Traders data from the Commodity futures Trading Commission (CFTC).
• December corn futures is trading around $6.10, near the middle of the range for the past week.

Soybeans are modestly firmer after rebounding from overnight declines.

• Soybeans are gaining support from ongoing concerns over dryness in parts of the Midwest and signs of improving export demand.
• USDA reported daily sales of 132,000 MT of soybeans for delivery to China during the 2022-23 marketing year.
• USDA reported 867,504 MT (31.9 million bu.) of soybeans inspected for export during the week ended Aug. 4, up from 594,958 MT a week earlier and surpassing expectations from 300,000 to 750,000 MT.
• USDA a week ago reported 60% of the soybean crop in “good” to “excellent” condition, an unexpected improvement from 59% a week earlier.
• China imported 7.9 MMT of soybeans in July, down 4.5% from June and 9.1% less than last year, as weak crush margins reduced demand from importers. Through the first seven months of this year, China imports 54.2 MMT of soybeans, down 5.9% from the same period last year.
• November soybeans are trading within Friday’s range after ending last week at $14.08 3/4, down 59 3/4 cents from a week ago.

Wheat futures are higher, led by gains of 9 to 12 cents in SRW contracts.

• Wheat futures are higher in a corrective bounce following recent losses as traders continued to monitor the pace of Ukrainian grain shipments.
• USDA reported 603,549 MT (22.2 million bu.) of wheat inspected for export during the week ended Aug. 4, up from 308,333 MT a week earlier. Trade expectations ranged from 250,000 to 550,000 MT.
• A pullback in the U.S. dollar index this morning is helping encourage corrective buying in wheat.
• September SRW futures fell below last Friday’s low overnight but held above recent support at $7.52.

Cattle futures are higher at midmorning, led by strong gains in feeders.

• Live cattle are higher behind expectations last week’s cash strength will extend this week. Traders appear cautiously optimistic cash cattle prices will work higher.
• Feeder cattle futures are gaining support from weakness in corn.
• USDA-reported live steers average $140.52 last week through Friday morning, up from the previous week’s average of $139.83. But packers continue to rely on previously purchased cattle, contracted and formula-based animals to fill out their slaughter schedules, which could again limit demand for negotiated animals. 
• Choice boxed beef ended last week at $264.62, down $4.62 from a week earlier and near a six-week low. Movement was strong at 109 loads.

Hog futures are higher, led by the October contract.

• October lean hog futures surged near their contract high on support from strong cash fundamentals and followthrough technical strength from last week’s rally.
• Today’s CME lean hog index quote is up 48 cents to $122.09 (as of Aug. 4), just 59 cents shy of last year’s high, which was posted in mid-June. The index may climb further in light of tighter slaughter supplies than last year.
• Pork cutout values ended last week at $125.03, down from $127.34 a week earlier. Movement Friday was slower at about 279 loads. But the national average carcass price was $124.43, up $7.35 from a week prior.
• China imported 643,000 MT of meat during July, up 40,000 MT (6.7%) from June but 207,000 MT (24.7%) below year-ago. China doesn’t break down the categories of meat imports in its preliminary data, but the sharp year-over-year reduction was due to slower pork demand. Through the first seven months of this year, China imported 4.1 MMT of meat, down 30.9% from the same period last year.
• October lean hogs reached $100.60, the highest intraday price since the contract high of $100.825 posted March 31.