Market Snapshot | July 10, 2023

Corn is mostly a nickel higher at midmorning.

Corn futures are higher on spillover strength from the soy complex.
Temperatures in the Northern Plains and a part of the Midwest will be cooler than usual over the coming week to 10 days, keeping moisture stress to a minimum in the driest areas, although there will be need for greater rain in some areas, notes World Weather Inc. Rains this week will favor central and southern areas of the Corn Belt.
USDA reported corn export inspections of 341,024 MT (13.4 million bu.) in week ended July 6, which fell short of the pre-report range of 500,000 to 900,000 MT. Inspections were down 334,865 MT from the previous week.
Brazil’s safrinha corn harvest advanced to 27% complete as of last Thursday, according to AgRural. While that’s 41% behind that date last year, yields remain strong.
December corn is trading narrowly within last Friday’s range. Initial resistance stands at $5.04 3/4 and initial support of $4.88 3/4.

Soybeans are mostly 28 to 31 cents higher, while meal futures are more than $3.50 higher. Soyoil is posting near 300-point gains.

Soybeans are higher amid forecasts that indicate a return of hot, dry weather next week.
A transition to warmer and drier weather will occur from the middle of next week to at least July 24, and a boost of rain will be needed as soon as rain through the next 10 days is not likely to leave a large part of the region with an abundance of soil moisture, according to World Weather.
USDA reported soybean export inspections of 238,234 MT (8.8 million bu.) which were within the pre-report range of 125,000 and 400,000 MT. Inspections were down 24,298 MT from the previous week.
China’s customs agency will now require importers to stage imported soybeans at specific warehouses before they get quarantine permission for the shipments to enter the domestic market. The increased inspections process will slow clearing times on soybeans arriving at Chinese ports.
Malaysian palm oil futures rose overnight, lifted by a surge in July exports and a slower increase in June inventories.
November soybeans have hovering under resistance of $13.53 1/4, while the 10-day moving average of $13.18 3/4 is serving as support.

SRW wheat is mostly 2 to 3 cents lower, while HRW wheat is around a penny lower. HRS wheat is 4 to 6 cents higher.

SRW wheat is posting mild losses despite strength in corn and the weaker U.S. dollar.
U.S. HRW wheat areas will continue to experience waves of rain this week, keeping the pressure on wheat quality in parts of southern Kansas and Oklahoma.
USDA reported wheat export inspections of 419,134 MT (15.4 million bu.), which topped the pre-report range of 200,000 to 400,000 MT. Inspections were up 76,959 MT from the previous week.
Turkish President Recep Tayyip Erdogan said he was “hopeful” the Black Sea grain deal, which expires on July 17, could be extended for three months. Meanwhile, Russia’s RIA news agency reported “there is no optimism” for the extension of the deal—a position that Moscow has reiterated frequently in recent weeks—citing a source familiar with the negotiations.
September SRW wheat futures are trading between initial resistance of $6.59 3/4 and initial support of $6.41 1/2.

Live cattle and feeders are posting notable gains.

Live cattle are extending last week’s gains amid expectations of a strengthening cash market.
Packers had to get more aggressive with cash cattle bids in the northern market late Friday due to market limited market-ready supplies in the region. With packers thought to need more near-term supplies, cash cattle prices are expected to strengthen in the northern market this week.
Wholesale beef prices continued to slide lower with Choice falling $2.97 to $316.90, while Select dropped $4.34 to $285.63. Movement improved to 134 loads amid the sharp price drop.
August live cattle have pushed above last week’s high. Resistance is at the contract high of $178.10, while support lies at $175.13.

Lean hogs marking mild gains at midsession.

July lean hogs are slightly higher on support strong cash fundamentals.
The CME lean hog index is up $1.36 to $97.43 as of July 6, that follows an increase of $1.39 the previous day and signals the seasonal rally in the cash index is gaining momentum.
July lean hog futures hold around $1.60 premium to the cash index, while August hogs are trading around a $2.00 discount.
The pork cutout value rose $2.94 on Friday, driven mostly by a near $14 jump in primal bellies.
August lean hogs extended above initial resistance of $96.30 but have turned from earlier highs. Initial support lies at $94.375.

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