Market Snapshot | February 21, 2024

Market Snapshot
Market Snapshot
(Pro Farmer)

Corn futures are mostly 5 to 7 cents lower.

  • Corn futures are edging lower amid spillover weakness from the soy complex.
  • Ukrainian farmers are reviewing their planting plans for 2024 after low corn prices led to steep losses last year, but their ability to switch to a more profitable crop is limited by scarce funding, according to producers.
  • Argentina will see a good mix of rain and sunshine during the next two weeks. A few rounds of rain expected will maintain favorable crop conditions in much of the country while the rain will be timely in the drier pockets in the north and west, according to World Weather Inc.
  • March corn posted a fresh contract low at $4.12 1/4, with next support at $4.11 1/2. Resistance stands at $4.18 1/4.

 

Soybean futures are mostly 11 to 14 cents lower, while March soymeal is around $4.50 lower. March soyoil is about 50 points lower.

  • Soybeans have given back most of the corrective gains from the past two sessions.
  • Agroconsult cut its Brazilian soybean crop estimate by 1.6 MMT to 152.2 MMT as adverse weather cut yields in key production areas. The Brazil-based firm, which began a tour of Brazil’s main soy producing regions 33 days ago, said it has so far covered almost 30,000 kilometers, or 60% of the areas it intends to survey.
  • Malaysian palm oil futures rose overnight, tracking Dalian’s palm oil contract, though weak export data and a lack of fresh demand hover over the market.
  • March soybeans have filled Tuesday’s gap higher and fell below support at $11.72 1/2 and $11.66. Additional support is at last week’s low of $11.60 1/4. Resistance is at the 10-day moving average of $11.79 1/2 and the 20-day moving average of $11.94 1/2.

 

Winter wheat futures are mostly 5 to 9 cents lower, while HRS futures are 3 to 6 cents lower.

  • Wheat futures are facing mild profit-taking following Tuesday’s strong gains as technicals continue to limit sustained buying.
  • Ukraine called on the European Commission to take robust action after Polish farmers blockaded the border and opened railcars to let grain spill out. Protests from farmers complaining of unfair competition have strained ties between the two countries that were already on edge after truckers blocked border crossings around the turn of the year.
  • What little snow is currently on the ground in the Northern Plains is expected to melt between today and next Monday due to unusual warmth, notes World Weather. A winter storm is still expected late Monday through Tuesday, though there is some uncertainty with how much snow will occur from this and if it will affect the entire region or leave some areas with no snow.
  • March SRW futures are trading within Tuesday’s upper trading range and continue to face resistance at the 10-day moving average of $5.85 1/4. Initial support is at $5.74 1/4.

 

Live cattle and feeders are slightly to moderately higher at midsession.

  • Nearby live cattle notched a fresh near-term high, though lacking cash cattle trade is limiting a move higher.
  • Packers purchased a large volume of cattle last week — the most since October and second straight week of big purchases, likely limiting their need for near-term supplies, especially with reduced slaughter runs.
  • Wholesale beef prices rose modestly Tuesday, with Choice gaining 28 cents to $297.37, while Select firmed 42 cents to $287.82. Movement totaled 110 loads.
  • April live cattle have traded as high as $188.90 but are facing resistance at $189.21. Meanwhile, initial support remains at $186.76.

 

Lean hogs are mostly higher at midmorning.

  • Hog futures are modestly higher as traders remain reluctant buyers amid a $9 premium in the April contract to the cash index.
  • The CME lean hog index is up $1.05 to $76.80 as of Feb. 19, which is the largest daily increase since last summer when the index was surging to a seasonal top.
  • An $8 drop in primal bellies pulled the pork cutout $1.34 lower Wednesday to $92.44. Movement totaled 268.5 loads.
  • April lean hogs are trading within Tuesday’s range, with initial support at $85.425, while initial resistance stands at $86.07.

 

Latest News

PF Report Reaction: Bullish USDA data for corn
PF Report Reaction: Bullish USDA data for corn

Corn planting intentions and March 1 stocks came in lower than expected.

Report Snapshot: USDA shows lighter-than-expected corn acres and stocks
Report Snapshot: USDA shows lighter-than-expected corn acres and stocks

USDA reported corn acres of 90.036 million acres for 2024 and March 1 stocks of 8.347 billion bu., both well below trade estimates. Soybean acres were slightly lower than expectations, while stocks were higher.

Timeline and Issues in Getting Baltimore Port Channel Reopened
Timeline and Issues in Getting Baltimore Port Channel Reopened

Exxon Mobil and SAF | Fed governor says ‘no rush’ to lower rates | Russia aids Cuba | Key USDA reports today

Cattle Strength Wanes | March 28, 2024
Cattle Strength Wanes | March 28, 2024

Japan works to support Yen, Eurozone cuts production forecast and the Biden Administration will repair Baltimore Bridge...

Ahead of the Open | March 28, 2024
Ahead of the Open | March 28, 2024

Corn, soybeans and wheat traded in tight ranges overnight, with grains showing relative strength into the break.