Market Snapshot | January 27, 2023

Corn futures are a penny to 2 cents lower at midmorning.

Corn futures are trading narrowly lower as crude oil futures have turned slightly weaker, with the U.S. dollar index showing strength.
Significant rains fell in Argentina overnight from northern and central Buenos Aires to southern Cordoba and San Luis with amounts of 0.50 to 1.50 inches and several areas getting 2.00 inches or more, according to World Weather Inc.
Ukraine’s corn production is set to fall for a second year in 2023, with corn output not expected to exceed 18 MMT as farmers reduce planting due to the war, according to ag ministry officials.
March corn is trading within Thursday’s range, making a session-low just above the 10-day moving average near $6.77 3/4, where initial support lies. First resistance stands at $6.87 3/4.

Soybeans are around 2 to 4 cents lower, while March meal futures are more than $3.00 higher and March soyoil is about 80 cents weaker.

Soybeans are lower as additional rains fell in Argentina, easing some production concerns.
World Weather notes Argentina, Brazil, Uruguay and Paraguay are all expecting periodic showers and thunderstorms during the next two weeks.
Malaysian palm oil futures rose for the second straight session today on bargain buying amid a recovery in rival oils.
March soybeans traded as high as $15.27 overnight before fading, with initial resistance near $15.33 and first support at the 10-day moving average near $15.13 3/4.

SRW wheat futures are 1 to 3 cents lower, with HRW and HRS contracts favoring the upside.

SRW wheat futures are mildly lower after marking gains in the past three sessions as a lack of bullish news and outside markets weigh on the complex.
U.S. hard red winter wheat areas will trend much colder this weekend into early next week, but World Weather maintains crop damage is not likely due to the coldest temperatures staying in areas that have significant snow cover.
Areas of the Southern Plains are not likely to get much significant precipitation through Monday; southeastern parts of the region will get rain and some snow Tuesday through Thursday next week.
Ukraine’s wheat production is estimated to fall for a second year in 2023, with output not expected to exceed 16 MMT, according to ag ministry officials.
March SRW wheat is trading within the previous session’s range with initial support lying at the 10-day moving average of $7.41 with first resistance standing at the 40-day moving average of $7.52 3/4.

Live cattle are marking cautious gains, while feeders are moderately higher.

Live cattle futures are reversing early losses from extended profit-taking efforts and faded hopes of developing cash cattle trade.
Cash cattle activity remains quiet, with packers seeking to buy animals $1 or more lower than last week, while feedlots want steady or better prices.
Recent extended cash negotiations have been in packers’ favor, though they are thought to be short-bought on near-term slaughter needs after several weeks of light purchases.
Choice values rose 47 cents while Select dropped 32 cents, with packers moving 120 loads on Thursday.
February live cattle dipped below the 40-day moving average near $156.62 before rebounding, with initial support lying at $156.40 and initial resistance at the 20-day moving average around $157.32.

Hog futures are mixed, as the nearby contract fades and deferred contracts post notable gains.

February lean hog futures are weaker given their premium to the cash index. Traders will likely want to see further proof that a seasonal low has formed before building premium in the front-month contract.
The CME lean hog index is 20 cents higher as of Jan. 25 after a 22-cent increase yesterday.
Deferred lean hog futures are being supported by followthrough buying after posting bullish reversals on Thursday.
February lean hog are trading within the previous session’s range, with initial support around $74.92 and first resistance at the 10-day moving average near $77.42.

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