Market Snapshot | June 8, 2023

Front-month corn futures are up about a nickel, while new-crop is 1 to 2 cents lower.

• July corn futures are higher amid bull spreading, along with a weaker U.S. dollar.
• Rain is expected across the Corn Belt, starting in the west this weekend, and then advancing to the east next week. But World Weather Inc. warns, “Be cautious here…the Gulf of Mexico is still not open as a good moisture source and the abundant rain seen in the GFS [U.S.] model will not likely verify. The European model has the best forecast through day 10.
• Drier weather in the Midwest over the past week led to further expansion of dryness/drought, according to the Drought Monitor. Most of the Corn Belt is now facing moisture deficits.
• USDA reported net corn sales of 172,700 MT for 2022-23 for week ended June 1, which were down 8% from the previous week but up notably from the four-week average. Net sales reductions of 106,800 MT were reported for 2023-24. Traders expected sales within a range of (100,000) to 600,000 MT for 2022-23 and 100,000 to 400,000 MT for 2023-24.
• July corn is consolidating in a short-term sideways pattern, with $5.95 1/4 providing support and resistance remaining at $6.10 1/2.

Old-crop soybeans are higher, while new-crop contracts are mildly weaker. July meal futures are around $1.00 lower and July soyoil is marking 100-plus point gains.

• Nearby soybeans are higher for the third straight session following slightly stronger weekly export sales data.
• USDA reported net soybean sales of 207,200 MT for 2022-23, which were up 68% from the previous week and noticeably higher than the four-week average. Net sales of 264,600 MT were reported for 2023-24. Traders expected sales within a range of (100,000) to 300,000 MT for 2022-23 and 50,000 to 400,000 MT for 2023-24.
• Malaysian palm oil futures fell to a one-week closing low on Thursday as prospects of rising inventories outweighed support from a weaker ringgit.
• July soybeans are testing resistance at Wednesday’s high of $13.70 3/4, while support lies at $13.50 1/4.

SRW wheat is mostly 7 to 8 cents higher, while HRW is 12 to 14 cents higher. HRS wheat is mostly 17 to 18 cents higher.

• Wheat futures are sharply higher as global supply concerns increase in the wake of flooding in Ukraine following the destruction of the Kakhovka dam.
• Ukraine could lose several million tonnes of crops due to flooding caused by the destruction of the Kakhovka dam in the south of the country, according to the Ukrainian agriculture ministry.
• World Weather reports U.S. wheat production areas in the Central Plains will continue to receive frequent rain, but there has not been much of a threat to grain quality with the most recent precip events. There is potential for quality declines again if it rains frequently.
• USDA reported wheat export sales of 234,800 MT, for the 2023-24 marketing-year that began June 1. Traders expected sales between 200,000 and 550,000 MT for 2023-24. There were undelivered sales of 877,400 MT carried over from 2022-23 to the new-crop marketing year.
• July SRW wheat is pivoting around the 100-day moving average at $6.20 3/4, with the 20-day moving average of $6.16 1/2 is providing initial support. Initial resistance stands at Wednesday’s high of $6.23 3/4.

Live cattle are choppy in midmorning trade, while feeders are firmer.

• Live cattle are choppy after yesterday’s strong corrective declines.
• Cash cattle have traded as much as $10 higher so far this week and futures are well below the cash market.
• Wholesale beef prices continued higher on Wednesday, with a $3.79 gain in Choice to $325.19, and $2.12 increase in Select to $301.56, taking the Choice/Select spread to $23.63. Movement totaled 119 loads for the day.
• USDA reported net beef sales of 12,800 MT for 2023, down 29% from the previous week and 27% below the four-week average.
• August live cattle are pivoting mostly around Wednesday’s close, with $171.17 serving as support, while resistance stands at $174.63.

Lean hogs are moderately to sharply lower at midsession.

• Lean hog futures are edging solidly lower for the second straight day following last week’s notable gains.
• The CME lean hog index jumped $1.18 to $83.04 as of June 6, marking the biggest daily gain since late December.
• The pork cutout value rose 17 cents on Wednesday to $85.15, while movement totaled 300.3 loads.
• USDA reported net pork sales of 25,500 MT for 2023, up 13% from the previous week but down 11% from the four-week average. Top purchasers included Mexico (9,100 MT) and China (8,100 MT).
• August lean hogs have filled Tuesday’s gap, now trading below the 20-day moving average of $82.21. Support lies at $81.37. Initial resistance is at Wednesday’s close of $83.10.