Market Snapshot | November 6, 2023

Market Snapshot
Market Snapshot
(Pro Farmer)

Corn is fractionally to a penny higher at midmorning.

  • Corn futures are modestly favoring the upside in narrow trade, with weakness in soymeal limiting buyer interest.
  • USDA reported daily corn sales of 289,575 MT for delivery to Mexico during 2023-24.
  • World Weather Inc. reports Argentina will see a good mix of rain and sunshine during the next two weeks that will allow for crops to develop in a mostly favorable environment while fieldwork should advance between rounds of rain.
  • USDA reported weekly export inspections of 535,191 MT (21.1 million bu.) for week ended Nov. 2, which were down 5,594 MT from the previous week, but above the expected pre-report range of 175,000 to 400,000 MT.
  • December corn is trading within Friday’s range, with the 10-day moving average of $4.78 1/4 capping gains. Additional resistance is at $4.83, while initial support lies at $4.75 1/2.

Soybeans are mostly 13 to 15 cents higher, while December meal futures are around $7.50 lower. December soyoil is around 200 points higher.

  • Soybeans are extending gains for the fifth straight session, with soyoil strength bolstering the complex despite notable meal weakness.
  • USDA reported daily soybean sales of 126,000 MT for delivery to China during 2023-24.
  • Brazil’s 2023-24 soybean planting was 51% complete as of last Thursday, according to AgRural. While the pace gained 11 percentage points from the previous week, efforts continue to trail last year’s pace of 57% for the same period and represent the slowest for the period since 2020-21.
  • Pockets of improved rainfall in center-west and northern center-south Brazil early in the weekend induced some improvement in crop and field conditions, though the greatest rain was not widespread. There is expected to be a drier bias across these areas during the coming week to 10 days, with wet conditions likely in southern Brazil this weekend into next week.
  • USDA reported weekly export inspections of 2.085 MMT (76.6 million bu.) in week ended Nov. 2, which were up 8,012 MT from the previous week and within the pre-report range of 1.75 to 2.35 MMT.
  • January soybeans have traded as high as $13.69 3/4, with resistance at $13.73 limiting the upside. Initial support is at Friday’s close of $13.51 3/4.

SRW and HRW wheat contracts are mostly 1 to 2 cents higher, while HRS contracts are around 2 to 5 cents higher.

  • Wheat futures have rebounded from weakness overnight on spillover support.
  • Ukraine’s grain exports have fallen to 9.8 MMT so far in the 2023-24 marketing season, according to ag ministry data, which is down from 14.3 MMT for the same period last year.
  • USDA reported weekly export inspections of 71,608 MT (2.6 million bu.), which were down 126,690 MT from the previous week and below the expected pre-report range of 175,000 to 400,000 MT.
  • December SRW futures have edged above the 20-day moving average of $5.73, but the 40-day moving average of $5.76 1/4 is limiting gains. Initial support remains at $5.66.

Live cattle and feeders are marking sharp losses at midmorning.

  • December live cattle are posting notable losses after gapping lower with wholesale weakness pressuring the market.
  • Cash cattle traded steady-to-firmer Friday, though traders will have to wait until late this morning to get the official average cash price. Some feedlots passed on steady bids, opting to carry forward to this week, which will increase showlist numbers.
  • Wholesale cattle prices fell Friday, with Choice dropping $2.19 to $302.34, while Select dipped $2.33 to $272.01, taking the Choice/Select spread to $30.33. Movement totaled 151 loads.
  • December live cattle gapped below support at $183.28, which is now serving as resistance. The 10-day moving average of $182.16 is providing support.

Lean hogs are posting mild gains at midsession.

  • Lean hog futures are trading modestly higher following Friday’s corrective pullback.
  • The CME lean hog index is down another 39 cents as of Nov. 2, extending the seasonal decline.
  • The pork cutout value slid 13 cents Friday to $87.28 but seems to have stabilized in the mid-$80 range.
  • December lean hogs are trading within Friday’s range, while the 40-day moving average of $71.45 continues to provide support. Initial resistance stands at $73.08.
 

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