Market Snapshot | May 18, 2023

Corn futures are 3 to 9 cents lower at midmorning.

Corn futures are lower for the third straight session amid weak export sales, pressure from wheat and outside markets.
USDA reported net sales reductions of 339,000 MT for 2022-23 in week ended May 11, a marketing-year low and down noticeably from the previous week and from the four-week average. Pre-report estimates ranged from (500,000) to 300,000 MT.
World Weather Inc. notes two rounds of storms are expected with additional rain into early Saturday from the southwestern to eastern Corn Belt, Wisconsin and eastern Minnesota with the southwestern Corn Belt to Upper Midwest expected to see rain May 25-26.
July corn has tested initial support at $5.49 1/2, with additional support lying near $5.37 1/2. Initial resistance stands at $5.66 1/4.

Soybeans are 4 to 6 cents lower, while July meal futures are more than $7.00 lower. July soyoil is around 60 points higher.

Soybeans have come off their earlier lows but are being pulled lower by meal weakness.
USDA reported net old-crop soybean sales of 17,000 MT in week ended May 11, which were down 73% from the previous week and 89% below the four-week average. That included reductions of 119,200 MT for China. Net sales of 663,800 MT were reported for 2023-24. Traders expected sales of 0 to 300,000 MT for 2022-23 and 50,000 to 300,000 for 2023-24.
Malaysian palm oil futures eased on Thursday for a fourth straight session as hopes of higher production and an extension of the Black Sea grain deal increased prospects of improved global supply.
July soybeans fell as low as $13.23 1/4, testing initial support of $13.24 1/2. Initial resistance stands at $13.57 1/2.

SRW wheat is mostly 15 to 17 cents lower, while HRW wheat is around 30 cents lower. HRS wheat is 25 to 32 cents lower.

Wheat futures are lower amid a strengthening U.S. dollar and poor export sales data.
USDA reported net wheat sales reductions of 42,100 MT for 2022-23, a marketing-year low, though net sales of 336,800 MT were reported for 2023-24. Traders expected sales of 50000 to 150,000 MT and 50,000 to 300,000 MT for 2023-24.
On Day 2 of the Wheat Quality Council’s HRW wheat tour, scouts found an average yield of 27.5 bu. per acre on samples taken from western and south-central Kansas. That was down from an average yield of 37 bu. per acre last year and the 2017-22 average of 44.7 bu. per acre.
Russia says “various options” are being worked out regarding easing restrictions on Russia’s state agricultural bank, as part of its agreement to extend the Black Sea grain deal for two months through mid-July.
July SRW wheat has traded as low as $6.06 1/4, testing initial support at $6.09 1/2, additional support lies at $5.93 1/2. Initial resistance is around $6.31 3/4.

Live cattle are mixed while feeders are posting solid gains.

Live cattle are modestly lower as traders continue to wait for cash cattle trade to develop.
Neither packers nor feedlots are in a hurry to get active cash trade underway, with negotiations likely being pushed deep into the week, potentially after Friday afternoon’s Cattle of Feed Report.
Wholesale beef fell Wednesday, with a $1.32 drop in Choice to $298.15, and a $1.46 decline in Select to $282.89, narrowing the Choice/Select spread to $15.26.
USDA reported beef export sales of 17,400 MT for 2023, up 5% from the previous week and 7% above the four-week average.
June live cattle have reached an intraday high of $165.35, short of initial resistance at $165.53, while support lies around $164.23.

Lean hogs are lower at midsession.

Lean hog futures are moderately to sharply lower in most contracts.
The CME lean hog index is up 63 cents to $77.80 as of May 16, extending its seasonal price climb. Traders are narrowly futures’ premiums to the cash market.
The pork cutout value dropped 68 cents on Wednesday as packers continue to struggle to find sustained retailer buying.
USDA reported pork export sales of 31,900 MT for 2023, up 6% from the previous week but down 25% from the four-week average.
June lean hogs fell as low as $83.30 but have moved off that level and are hovering above the 10-day moving average of $84.68. Resistance stands at the 20-day moving average of $86.71, while support lies at $83.52.

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