Market Snapshot | May 19, 2023

Corn futures are 6 to 10 cents higher at midmorning.

• Corn futures are higher on corrective buying following the recent sharp selloff.
• The U.S. and the rest of the Group of Seven (G7) major economies will unveil new sanctions and export controls targeting Russia over its war against Ukraine, according to a U.S. official. Sanctions would include targeting companies connected to the theft of Ukrainian grain and those involved in the shipment of Russian energy.
• World Weather Inc. notes central and western parts of the U.S. Midwest will experience net drying over the next 10 days due to restricted rainfall and warm temperatures.
• July corn has breached resistance at $5.62 1/4 and $5.69 1/2, with $5.77 serving as the next level of resistance. Initial support lies at $5.47 1/2.

Soybeans are 1 to 6 cents higher, while July meal futures are fractionally higher. July soyoil is around 70 points higher.

• Soybeans are edging higher, though deferred meal futures are favoring the downside and capping gains in the complex.
• With export demand slowing seasonally and U.S. planting off to a rapid start, the upside is limited to corrective buying.
• Malaysian palm oil futures rose overnight from a near three-week low carved in the previous session on renewed buying by key importer China.
• July soybeans are holding mostly around support at $13.34 3/4, though additional support lies at $13.21 1/2. Initial resistance is at $13.46 1/4.

SRW wheat is fractionally higher, while HRW wheat is 11 to 14 cents lower. HRS wheat is around 9 cents lower.

• SRW wheat is holding near unchanged, while HRW wheat is moderately lower despite continued reports of the drought-damaged crop.
• The Kansas winter wheat crop this year is expected to tumble to the lowest level in more than 60 years as the extreme drought weighs on yields and has led to heavy abandonment, according to findings from the annual Kansas Wheat Tour.
• SovEcon raised its Russian wheat crop estimate by 1.2 MMT to 88 MMT due to improved crop conditions in the southern growing region, which received 100% to 150% of normal rainfall over the past month.
• July SRW wheat futures are trading narrowly within the lower range of the previous session, with $6.02 1/2 serving as initial support. Resistance stands at $6.23 1/2.

Live cattle are mostly firmer, while feeders are posting moderate- to heavy-losses.

• Live cattle are trading cautiously ahead of this afternoon’s Cattle on Feed Report.
• Though cattle futures continued to trade at big discounts to the cash market, this week’s price gains suggest traders aren’t expecting weaker cash trade.
• Wholesale beef prices rose Thursday with a 16-cent bounce in Choice to $298.31, while Select rose 72 cents to $283.61, further narrowing the Choice/Select spread to $14.70. However, movement totaled only 82 loads.
• June live cattle have tested initial resistance of $166.06, marking an intraday high of $166.225. Additional resistance stands at $166.59, while support lies at $164.66.

Lean hogs are marking heavy losses at midsession.

• Lean hog futures are lower despite ongoing seasonal strength in the cash market.
• The CME lean hog index rose another 62 cents to $78.42 as of May 17.
• The pork cutout value firmed 66 cents on Thursday to $83.73, though movement slowed to 209.33 loads.
• June lean hogs are trading narrowly, with Thursday’s close of $85.30 serving up initial resistance while support remains at $83.85.