Market Snapshot | March 29, 2023

Corn is mostly a penny to 3 cents higher.

Nearby corn is slightly higher, taking spillover gains from SRW wheat and support from another daily export sales announcement.
USDA announced a daily old-crop corn sale to China totaling 204,000 MT, marking the seventh straight day with an old-crop sale. Since March 14, old-crop corn sales have totaled 3.205 MMT, all to China aside from 112,800 to unknown destinations.
World Weather Inc. notes wet conditions will continue in the Delta, lower Midwest and Tennessee River Basin during the next 10 days, raising concerns over fieldwork delays.
Ethanol production in week ended March 24 averaged 1.003 million barrels per day (bpd), up 6,000 bpd from the previous week. Ethanol production declined 3.2% from the same week last year. Ethanol stocks dropped 661,000 barrels to 25.527 million barrels.
May corn is trading narrowly between the 50-day moving average at $6.55 1/2 and the 5-day moving average near $6.45.

Soybeans are posting 2- to 7-cent gains in old-crop contracts. May meal futures are around unchanged, while May soyoil is modestly firmer.

Soybeans are mostly firmer as traders position ahead of Friday’s Prospective Planting and Quarterly Stocks Reports.
World Weather highlights infrequent and light rains in Brazil, which should allow soybean harvest to advance until a period of wetter weather arrives next Tuesday. The forecaster continues to cite frequent rains through Tuesday in Argentina.
Malaysian palm oil futures eased overnight after rising for two straight sessions, as a report highlighting the vegoil’s fading premium against rival oils weighed on prices.
May soybeans are underpinned by support at the10-day moving average of $14.59 3/4, while initial resistance stands near $14.78 1/4.

Winter wheat futures are posting 5- to 9-cent gains, with HRW leading the move higher. Spring wheat is around 2 to 5 cents higher.

Wheat futures are posting moderate gains following Cargill’s announcement that it will no longer export Russian grain at the start of the coming marketing year. Viterra also says it will exit the Russian grain market.
Poland wants the EU to use all tools at its disposal to limit the amount of Ukrainian grain entering the bloc’s market, the prime minister said, amid fury among farmers of the effect of imports on Polish grain prices.
The Southwestern Plains will remain dry over the next 10 days, maintaining stress on the greening of the HRW wheat crop.
May SRW wheat pushed above resistance at $7.12 1/2 but failed to find sustained buying. Solid support is at the convergence of the 5-, 10- and 20-day moving averages near $6.91.

Live cattle are slightly higher, with feeders marking slight- to moderate-gains.

Nearby live cattle are notching gains for the fourth straight session, though buying is capped as traders wait for cash trade to develop.
Cash sources anticipate the cash market to firm again this week, though it’s unlikely there will be any serious trade until Thursday or Friday.
Wholesale beef rose on Tuesday with Choice up 27 cents to $280.63, while Select increased 64 cents to $270.36, leaving the Choice/Select spread at $10.27. Movement totaled 103 loads.
April live cattle have traded as high as $165.45, above resistance near $165.32, with additional resistance around $165.61. Initial support is near $164.84.

April lean hogs are lower amid weakening technicals and cash fundamentals.
The CME lean hog index dropped another 32 cents in its seventh daily decline to $76.25 as of March 27. The index is down $3.76 over the course of its recent decline.
The pork cutout value fell $1.22 on Tuesday to $80.00 and is down $8.80 over the past two weeks.
April lean hogs continue to face resistance at the 10-day moving average of $77.56, while initial support lies at $76.95.

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