Market Snapshot | February 29, 2024

Market Snapshot
Market Snapshot
(Pro Farmer)

Corn futures are a penny to 4 cents higher.

  • Corn futures are higher amid corrective buying for the fourth straight session with notable weekly export sales lending support.
  • USDA reported corn export sales of 1.082 MMT during the week ended Feb. 22, up 32% from the previous week but down 5% from the four-week average. Net sales were near the upper end of the pre-report range of estimates from 600,000 MT to 1.2 MMT.
  • Brazil’s moisture is low from western and southern Mato Grosso through Mato Grosso do Sul to western Parana, along with parts of Paraguay, states World Weather Inc. While this has enabled swift safrinha corn plantings, the crop will soon require moisture.
  • May corn tested resistance at $4.32, which is backed by the 20-day moving average of $4.36. Meanwhile, the 10-day moving average of $4.25 is providing initial support, backed by support at $4.23 1/4. 

 

Soybean futures are mostly 2 to 5 cents higher, while May soymeal is around $3.00 higher and May soyoil is about 25 points higher.

  • Soybeans have rebounded after earlier falling to fresh for-the-move lows. Strength in soymeal and corn has encouraged corrective buying in soybeans.  
  • USDA reported soybean export sales of 159,700 MT for the week ended Feb. 22, up from the previous week’s marketing-year low but down 30% from the four-week average. Sales were near the low end of pre-report expectations from 100,000 to 600,000 MT.
  • Malaysian palm oi futures rose overnight, tracking strength in rival oils, while the market is waiting for leads from next week’s Price Outlook Conference and Exhibition.
  • May soybeans have rebounded sharply from the overnight low of $11.28 1/2, which will serve as initial support, backed by $11.25. Initial resistance is at the 10-day moving average of $11.56.

 

Wheat futures are mostly 3 to 6 cents higher.

  • Wheat futures are posting mild gains as corn provides spillover support.
  • The blast of arctic temps that hit the central U.S. the past two nights likely resulted in limited damage to the winter wheat crop, according to World Weather Inc. The forecaster did note some damage due to lacking snow cover and sub-zero temps may have damaged wheat in South Dakota, northern Nebraska and southeastern Montana.
  • Russia is not interested in renewing the Black Sea grain deal as it has its own grain export capabilities, state-run TASS news agency reported, citing Russian Agriculture Minister Dmitry Patrushev.
  • USDA reported wheat export sales of 327,300 MT for the week ended Feb. 22, which rose 40% from the previous week and 2% from the four-week average. Net sales were within the pre-report range of 200,000 to 500,000 MT.
  • May SRW futures are consolidating between the 10-day moving average of $5.74 3/4 and the 20-day moving average of $5.90 1/4. Additional support and resistance are at $5.66 1/2 and the 40-day moving average of $6.05 1/2.

 

Live cattle are moderately lower, while feeders are posting sharp losses.

  • Nearby live cattle have dropped to a two-week low as cash trade remains limited.
  • Feedlots passed on steady/weaker cash cattle bids in the Southern Plains Wednesday, while virtually no negotiations were reported in the northern market. Packers remain hesitant in raising cash bids again this week amid negative margins, while feedlots are in no hurry to move cattle at lower prices.
  • Wholesale beef prices rose Wednesday, with Choice gaining $1.29 to $303.03, while Select increased $2.54 to $292.94, further narrowing the Choice/Select spread to $10.09. Movement increased to 149 loads.
  • April live cattle dropped below the 20- and 200-day moving averages of $185.89 and $184.94, with additional support at $183.65. Resistance starts at today’s high of $186.10.

 

Lean hogs are higher at midsession.

  • Hog futures are modestly higher, though this week’s price trend remains sideways.
  • The CME lean hog index is up 13 cents to $79.91 as of Feb. 27, though the seasonal advance has slowed the past four days.
  • The pork cutout value slid $1.53 Wednesday to $90.34 amid a drop in call cuts except primal butts and picnics. Movement totaled 276.2 loads for the day.
  • April lean hogs continue to find support at the 10-day moving average of $86.09, while initial resistance remains at Monday’s high of $87.05.

 

 

 

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