Market Snapshot | August 22, 2022

Corn futures are 3 to 4 cents higher at midsession.

• Corn futures are slightly firmer and near the highest level in almost a week as traders monitor weekend rains and watch for reports from the Pro Farmer Midwest Crop Tour.
• Pro Farmer scouts will be sampling corn and soybean fields across the seven Crop Tour states over the next four days. Follow along with updates on our website and by searching #pftour22 on Twitter. Scouts on the eastern leg of the tour are making their way today from Dublin, Ohio to Noblesville, Indiana. The western leg is scouting fields between Sioux Falls, South Dakota and Grand Island, Nebraska. Look for preliminary route reports from Tour leaders in “Evening Report” and on our website.
• Some 27 ships loaded with grain have left Ukraine’s Black Sea ports since Aug. 1 under an export deal brokered by the U.N. and Turkey, which laid “the groundwork for a permanent peace environment,” Turkey’s Defense Minister said Saturday.
• Ukraine's agricultural exports are likely to rise to about 4 MMT in August, from 3 MMT in July, Reuters reported, citing a deputy chair of the Ukrainian Agrarian Council.
• Grain traders’ union UGA cut Ukraine's 2022 combined grain and oilseeds crop forecast to 64.5 MMT from a previous outlook for 69.4 MMT due to a smaller than expected harvested area caused by the Russian invasion.
• USDA reported 740,508 MT (29.2 million bu.) of corn inspected for export during the week ended Aug. 18, up from 539,336 MT the previous week and at the high end of trade expectations ranging from 450,000 to 850,000 MT.
• December corn rose as high as $6.26 3/4, the contract’s highest intraday price since $6.29 1/2 on Aug. 16. Initial resistance lies at the convergence of the 50- and 200-day moving averages around $6.29.

Soybean futures are about 23 cents higher, nearby soymeal is up over $12 and nearby soyoil is up nearly 50 points.

• Soybeans are higher in a corrective recovery following last week’s sharp declines as traders watch for reports from the Pro Farmer Crop Tour for indications of how much impact dry conditions are having in parts of the Midwest.
• Pockets of dryness and a little late season crop stress will continue in portions of the U.S. Midwest during the next two weeks; however, most production areas will continue to experience a good enough environment to support crop development, World Weather said today. Only far west-central and southwestern parts of the Corn and Soybean Belt will be dry enough for a little crop stress.
• China's soybean imports from Brazil dropped in July from a year ago, while shipments from the U.S. increased, customs data showed, as high prices curbed demand. China, the world's top soybean buyer, imported 6.97 MMT of soybeans from Brazil in July, down from 7.88 MMT a year earlier, data from the General Administration of Customs showed.
• USDA reported 686,583 MT (25.2 million bu.) of soybeans inspected for export during the week ended Aug. 18, down from 768,328 MT the previous week and within trade expectations.
• November soybeans pushed above the 10- and 50-day moving averages and climbed as high as $14.26 3/4, the contract’s highest intraday price since $14.43 3/4 on Aug. 15.

Wheat futures are firmly higher, led by gains of 14 to 18 cents in HRW and SRW contracts.

• Wheat futures rose in sympathy with gains in corn and soybeans and followthrough corrective buying from Friday’s gains. Soft exports and a resurgent U.S. dollar likely will limit price upside.
• USDA reported 594,273 MT (zz million bu.) of wheat inspected for export during the week ended Aug. 18, up from 389,914 MT the previous week and at the high end trade expectations ranging from 250,000 to 650,000 MT.
• December SRW wheat rose as high as $7.90 3/4, the contract’s highest intraday price since Aug. 17. Initial resistance comes in at the 10- and 20-day moving averages at $7.97 and $8.03, respectively.

Cattle futures are under slight to moderate pressure at midmorning.

• Live cattle futures fell to the lowest levels in almost a week in the wake of Friday’s Cattle on Feed Report, which reflected larger than expected animal supplies.
• Feeder futures are under slight pressure from higher corn prices.
• USDA estimated July feedlot placements at 1.765 million head, up 1.8% from year-earlier levels and above analyst expectations for a decline of about 1.5%. The number of cattle on feed as of Aug. 1 totaled 11.224 million head, 1.4% above the same date a year earlier and exceeding expectations for an increase of 0.7%, while July feedlot marketings fell 3.9% from 2021.
• Futures traders will soon turn attention to this week’s cash market, which is coming off two consecutive weeks of firm gains. Live steers averaged $146.76 last week through Friday morning, up $2.37 from the previous week's average. Cattle of Feed numbers may prompt packers to be less aggressive this week.
• October live cattle fell as low as $144.20, the contract’s lowest intraday price since Aug. 16.

Hog futures are higher after erasing early declines.

• Lean hog futures bounced back from brief initial weakness amid corrective buying following sharp declines last week. Price upside may be limited by beliefs the cash market has peaked and is heading into a seasonally weak period.
• The CME lean hog index is down 31 cents to $120.29, the seventh drop in the past eight days and near a four-week low.
• Choice pork cutout values fell $2.76 Friday to $117.15, down $4.68 from the end of last week and near a six-week low.
• October lean hogs fell as low as $92.125, but held above support at Friday’s six-week low of $91.90.