Market Snapshot | March 21, 2024

Corn futures are choppy at midmorning in directionless trade.

• Corn futures have retreated from earlier highs and are trading near session lows.  
• USDA reported corn export sales of 1.186 MMT during the week ended March 14, down 8% from the previous week but up 10% from the four-week average. Net sales were within the expected pre-report range from 800,000 MT to 1.4 MMT. This marked the eighth week in the past 10 with sales in excess of 1 MMT.
• Flooding in Argentina, Uruguay and western Rio Grande do Sul in the past 10 days has damaged crops, notes World Weather Inc., though the bulk of grain and oilseed production in Argentina and Brazil has not been seriously impacted.
• May corn spiked resistance at $4.45 but couldn’t find sustained buying at that level. Support lies at the 10- and 40-day moving averages of $4.39 1/4 and $4.38 1/2.

Soybean futures are mostly 2 to 4 cents lower, while soymeal is trading just below unchanged. May soyoil is around 50 points lower.

• Soybeans have given up overnight strength amid profit-taking and pressure from soyoil.
• USDA reported soybean export sales of 494,000 MT for the week ended March 14, which rose 31% from the previous week and 86% from the four-week average. Net sales were within the expected pre-report range of 250,000 MT to 800,000 MT.
• China may ask its soybean crushers to prioritize local supplies as it seeks to reduce the reliance on imports. Beijing is discussing plans for some crushers to process specific amounts of domestic beans this year, people familiar with the matter told Bloomberg.
• USDA’s attaché in China projects the country will import 103 MMT of soybeans in 2024-25, unchanged from its forecast for the current marketing-year, through 2 MMT less than the official forecast for 2023-24 in the March WASDE Report.
• May soybeans are pivoting around Wednesday’s high, with initial resistance at the overnight high of $12.26 3/4, while support lies around $12.00.

SRW and HRS wheat futures are mostly 1 to 2 cents higher, while HRW is narrowly mixed.

• Wheat futures are favoring the upside in narrow trade.
• USDA reported net wheat export sales reductions of 109,600 MT during the week ended March 14, a marketing-year low. There were net reductions of 262,700 MT by China. Net sales were down noticeably from both the previous week and four-week average, but were within the expected pre-report range of (200,000) MT to 500,000 MT.
• U.S. winter wheat in the northwestern Plains will benefit from waves of snow during the next week, according to World Weather, as the moisture melts into the topsoil when warmer weather returns.
• May SRW wheat is trading mostly between the 10- and 20-day moving averages of $5.43 1/4 and $5.52 1/4. A move outside of the range will face additional resistance/support at $5.61 and $5.37.

Live cattle and feeders are posting moderate to strong gains at midmorning.

• Nearby live cattle are moderately higher as traders expect cash cattle prices to strengthen again this week.
• Cash sources reported light cash cattle trade at steady prices in Kansas, though most feedlots in the Southern Plains passed on those bids in hopes of steady/firmer prices. Bids were mostly nonexistent in the northern market, where prices have moved premium to the Southern Plains. Northern feedlots are expecting fully firmer cash prices this week.
• Choice boxed beef prices firmed 22 cents Wednesday to $313.44, while Select fell 47 cents to $302.71. Movement totaled 136 loads for the day.
• April live cattle are challenging resistance at $189.10, while support lies at $187.28.

Lean hog futures are weaker at midsession.

• April hogs are mildly lower in light trade.
• The CME lean hog index is up another 39 cents to $83.21 as of March 19 and has now firmed $18.16 from the seasonal low posted at the beginning of the year.
• The pork cutout value slid $1.19 to $92.18 amid a drop in all cuts Wednesday. Movement totaled 288.6 loads.
• April lean hogs have extended below the 10-day moving average of $85.29, with additional support at $84.90. The 20-day moving average of $85.70 stands as initial resistance.