Market Snapshot | June 22, 2023

Corn is 10 to 14 cents lower at midmorning.

Corn futures are facing corrective selling as traders assess weather forecasts as rains could occur in drier areas over the weekend, though a large portion of the Midwest remains too dry.
The Midwest has a much larger area in the drought zone, according to the Drought Monitor, with around a 3.4% uptick on the week to 92.7% considered too dry. Some rains have fallen in the Midwest recently, but amounts have been below average with some areas receiving little to no rain.
Weekly ethanol production rose 34,000 barrels per day (bpd) to an average of 1.052 million bpd in the week ended June 16. That was 0.3% below the same week last year.
USDA’s export sales data for the week ended June 15 will be released on Friday, due to Monday’s government holiday.
July corn is trading within Wednesday’s wide range. Support lies at $6.54 1/2, while Wednesday’s close of $6.71 serves as resistance.

Soybeans are 40 to 50 cents lower, while July meal futures are around $12.00 lower. July soyoil is down about 150 points.

Soybeans are experiencing profit-taking following strong gains since May 31.
A boost in predicted rainfall was noted overnight in the northern Midwest, especially in Wisconsin and Michigan with some increase in shower activity suggested for the drier areas in Illinois, Indiana and Iowa over the coming ten days, according to World Weather Inc.
Soyoil futures continue to reel after EPA’s biodiesel mandates for 2023-25 came in lower than hoped yesterday.
Malaysian palm oil futures fell for the third straight session, taking pressure from soyoil.
July soybeans have erased Wednesday’s gains, falling below support at $14.88 3/4, with further support lying at $14.62 3/4. Wednesday’s high of $15.21 1/4 is serving as resistance.

SRW wheat is 1 to 3 cents lower, while HRW is chopping around unchanged. HRS wheat is mostly 1 to 2 cents lower.

Wheat futures tried to work higher this morning, but buyer interest is limited by the heavy selling in the soy complex and corn.
U.S. HRW wheat areas may be a little wet, but the situation will improve and most of the SRW areas are filling and maturing under favorable conditions, notes World Weather.
Russia is 99.9% certain to quit the Black Sea grain deal next month because it no longer needs Ukrainian ports to export ammonia, a senior Ukrainian diplomat said.
India’s wheat crop is at least 10% lower than the government’s estimate. India’s government forecasts the wheat crop at a record 112.74 MMT, but the head of the Roller Flour Millers’ Federation said production was around 101 MMT to 103 MMT.
July SRW wheat has reached as high as $7.47, the highest level since Feb. 24, though $7.46 3/4 remains as initial resistance. Additional resistance stands at $7.59 1/4, while support remains at $7.23.

Live cattle are mixed, while feeders are regaining a portion of yesterday’s losses.

Nearby live cattle are posting mild losses as cash fundamentals weaken.
Cash cattle trade began around $2.00 lower than last week. But seller interest is limited as futures are already trading well below the cash market.
Wholesale beef dropped another $2.66 to $334.25 on Wednesday, while Select fell $3.68 to $304.25. Movement increased to 139 loads for the day.
August live cattle are pivoting around Wednesday’s high, with the 20-day moving average of $170.52 serving as resistance. Support lies at $164.23.

Lean hogs are posting heavy losses at midsession.

July lean hogs are lower as traders narrow the premium to the cash index.
The CME lean hog index is up another 87 cents to $89.62 as of June 20.
The pork cutout bounced back from Tuesday’s decline with a $1.46 increase yesterday, amid strength in all cuts, in an extension of its seasonal rally.
August lean hogs have fallen below support at $90.99. The 100-day moving average of $93.76 is serving as resistance.

Tags