Market Snapshot | December 27, 2023

Corn futures are mostly 3 cents lower at midmorning.

• Corn futures are facing profit-taking efforts, in step with SRW wheat following Tuesday’s solid gains.
• A report from the Rosario Grains Exchange detailed earlier grain production for 2023-24 is estimated around 137 MMT, supported by a weather recovery after the last three droughts. If realized, it would be the country’s second largest harvest in history.
• USDA’s Animal and Plant Health Inspection Service (APHIS) announced the reopening of the comment period for its proposal regarding exemptions to regulations governing the movement of GMO products. The proposal aims to include five new genetic modifications that can be exempt from these regulations if they can be achieved through conventional breeding methods.
• March corn futures are trading within the previous session’s range, limited by the 10- and 20-day moving averages of $4.81 1/2 and $4.82 1/4. Initial support lies at $4.74 1/4.

Soybeans are around 6 to 7 cents lower, while soymeal is $3.00 lower. Soyoil futures are fractionally lower.

• Soybean futures are giving up a portion of Tuesday’s gains amid a more favorable South American forecast and persisting technical headwinds.
• Northeast Brazil is expected to trend much wetter beginning Sunday through most of next week, according to World Weather Inc. Southern Brazil and Argentina will experience a good mix of rain and sunshine during the next two weeks.
• Malaysian palm oil futures rose overnight for a second straight session as strength in rival edible oils underpinned the market, though low trading volumes curbed gains.

• March soybeans continue to be limited by the 200- and 10-day moving averages of $13.19 1/4 and $13.20 1/2, while initial support continues to serve at $13.07 3/4.

Winter wheat futures are mostly 11 to 14 cents lower, while HRS are 8 to 10 cents lower.

• Wheat futures are facing profit-taking following the largest daily gain since Nov. 8, while technical support and a weaker U.S. dollar are limiting losses.
• Russian agricultural consultancy Sovecon has slightly lowered its forecast for Russia’s 2023-24 wheat exports to 48.6 MMT from 48.8 MMT.
• U.S. led efforts to enhance security against attacks on vessels in the Red Sea are giving transporters confidence to increase the number of vessels for shipping following a string of attacks on civilian attacks.
• March SRW futures are trading within Tuesday’s range, with support serving at the 10-, 20- and 100-day moving averages of $6.18 1/2, $6.18 1/4 and $6.16. 1/4, while resistance stands at Tuesday’s high of $6.39 3/4.

Live cattle are posting slight- to moderate losses, while feeders are notably higher.

• Live cattle have retreated to the lower end of today’s range after trading the highest intraday level since Dec. 18.
• Last week’s cash cattle average rose $1.80 from the prior week to $170.51.
• Wholesale cattle prices rose Tuesday, with Choice gaining 38 cents to $293.31, while Select increased 4 cents to $261.19, though movement was light at 69 loads.
• February live cattle are being limited by resistance at $171.48, while the 10- and 20-day moving averages of $169.07 and $168.47 serve up initial support.

Lean hogs are moderately higher at midseesion.

• Nearby lean hogs gapped lower at the open but have rebounded modestly despite continued pressure from the cash index.
• The CME lean hog index forged a new seasonal low, dropping 66 cents to $65.59 as of Dec. 22.
• The pork cutout value fell 9 cents Tuesday to $82.12 despite a $10 gain in primal bellies. Movement totaled 298.1 loads.
• February lean hogs have tested support at $68.58 for the first time since Dec. 14, with additional support serving at $67.87. Meanwhile, the 10-day moving average of $70.18 stands as initial resistance.