Market Snapshot | February 9, 2024

Corn futures are mostly a penny lower at midmorning.

Corn futures are choppy with a downside bias on pressure from the soy complex. Support from strength in wheat is limiting seller interest.
All of Argentina is still expecting rain over the coming week and it will bring relief to weeks of drying and the recent bout of extreme heat, according to World Weather Inc.
About 2 MMT of corn remains unharvested in fields in several Ukrainian regions, brokers said Friday. They did not specify why the crops have not been harvested, but all four regions are near battle lines and are constantly subjected to massive bombardment by Russian forces.
March corn marked a fresh contract low before finding support at $4.29 1/2. Initial resistance stands at $4.36 3/4.

Soybean futures are mostly 5 to 8 cents lower, while March soymeal is nearly $3.00 lower. March soyoil is around 65 points lower.

Soymeal futures are edging lower for the fourth straight session and casting a shadow over the soy complex.
Safras & Mercado lowered its 2023-24 Brazilian soybean production forecast to 149.076 MMT, a 5.5% drop over the previous season’s harvest.
Malaysian palm oil futures settled higher and posted a weekly gain ahead of the Lunar New Year festive period, buoyed by expectations of declining production in the world’s second-largest producer.
March soybeans are trading within Thursday’s range and continue to be limited by the 10- and 20-day moving averages of $11.98 3/4 and $12.10 1/4. Support is at $11.81.

SRW wheat futures are mostly 8 to 13 cents higher, while HRW is 3 to 4 cents higher. HRS is mostly 1 to 2 cents higher.

SRW wheat futures are solidly higher but continue to edge sideways in a two-week consolidative range.
Ukraine expects it 2024 spring seedings area to be the same as last year, though it could be slightly lower in a worst-case scenario, Ag Minister Mykola Solsky told Reuters. Ukrainian farmers seeded a total of 12.85 million hectares of spring crops in 2023.
World Weather states U.S. crops are rated favorably, although some damage may have impacted the northwestern Plains crop in January when extreme cold with little to no snow cover.
March SRW futures continue to face resistance at the 40-day moving average of $6.05 3/4, while initial support lies at Thursday’s low of $5.83 3/4.

Live cattle are mostly lower, while feeders are weaker with heavier selling in deferred contracts.

Cattle futures are facing light profit-taking in deferred contracts ahead of the weekend.
Traders are waiting for cash cattle trade to develop before committing to the next leg higher.
Cash cattle trade has been minimal thus far as feedlots and packers continue in a standoff, though signs point to higher cash prices.
Choice boxed beef rose 3 cents to $295.01, while Select fell $1.30 to $284.12 on Thursday. Movement totaled 133 loads for the day.
April live cattle are trading within Thursday’s upper range, limited by resistance at the previous session’s high of $187.475, while initial support remains at $185.33.

Lean hogs are slightly to moderately higher.

Hog futures have regained a portion of this week’s losses, though overhead resistance is limiting momentum.
The CME lean hog index is down 2 cents to $74.00 as of Feb. 7, the first daily decline since Jan. 12 and only the fourth since the beginning of the year.
The pork cutout value gained $2.37 Thursday to $86.36, despite a drop in primal bellies and ribs. Hams led the cutout higher, notching $6 gains for the day.
April lean hogs filled Thursday’s downside gap and traded as high as $82.40 in a move back above the 20- and 200-day moving averages of $81.06 and $81.75, though resistance is at $82.375. Initial support lies at $83.075.

Tags