Market Snapshot | March 22, 2024

Market Snapshot
Market Snapshot
(Pro Farmer)

Corn futures are mostly a penny to 2 cents lower at midmorning.

  • Corn futures are facing followthrough selling, with spillover pressure stemming from the soy complex and outside markets.
  • USDA reported daily sales of 263,000 MT of corn for delivery to Mexico. Of the total, 173,000 MT is set to be delivered during the 2023-24 marketing year and the remaining 90,000 MT is for delivery during the 2024-25 marketing year.
  • Welcome rain fell on many of the driest areas from Paraguay into Mato Grosso do Sul Thursday and at least temporary improvements in conditions for safrinha corn resulted, while a large part of the remainder of Brazil outside of some north-central and northwestern areas received rain as well, according to World Weather Inc.
  • May corn is pivoting around the 10- and 40-day moving averages, each trading around $4.38, while initial resistance stands at $4.41 1/4. Initial support lies at $4.36 3/4 and is backed by the 20-day moving average of $4.33 3/4.

 

Soybean futures are mostly 16 to 19 cents lower, while soymeal is more than $4.50 lower. May soyoil is around 100 points lower.

  • Soybeans are giving up most of this week’s gains amid profit-taking efforts ahead of the weekend.
  • World Weather reports the soil moisture in Argentina is enough to support crop development in much of the country for drying through March 29. Exceptions extend from San Luis to northern Cordoba to a large part of Santiago del Estero where soil moisture is short to adequate and until rain returns, some crops may be stressed as the soil dries down.
  • Malaysian palm oil futures fell overnight to mark its first weekly loss in five as it consolidated after a recent bullish move, while lower edible and crude oil prices added to the decline.
  • May soybeans have found support at the 10- and 50-day moving averages of $11.95 1/2 and $11.93 1/4, while resistance is serving at Thursday’s close of $12.12.

 

SRW is mostly 3 cents higher, while HRW is around a nickel higher. HRS futures are mostly 2 cents higher.

  • Wheat futures are favoring the upside with HRW leading the complex higher despite persisting U.S. dollar strength.
  • The European Commission proposed on Friday imposing tariffs of 95 euros ($102.76) per metric tons for grains and 50% for oilseeds on imports from Russia and Belarus to prevent Moscow and its ally from distorting EU markets and placate farmers who have protested for months over cheap imports.
  • A major impacting snowstorm is expected in the northern Plains late Saturday through Monday, states World Weather. The snow will come with strong winds and blizzard or near-blizzard conditions. The event will occur mainly from Montana through South Dakota and southern North Dakota and into central Minnesota.
  • May SRW wheat is trading between initial support of $5.40 1/2 and the 20-day moving average of $5.50 1/4. Additional support/resistance stands at $5.34 1/4 and $5.58 3/4.

 

Live cattle are posting moderate- to strong losses, while feeders are sharply lower.

  • Nearby live cattle are moderately lower as technical resistance curbs buying efforts ahead of this afternoon’s Cattle of Feed Report.
  • USDA’s Cattle on Feed Report this afternoon is expected to show the March 1 feedlot inventory up 0.9% from year ago at 11.755 million head. That would be the sixth month of year-over-year increases in feedlot numbers. After a sharp drop in the number of calves moved into feedlots in January, placements last month are expected to have jumped 6.4% from last year. Marketings are expected to be up 3.8%. The extra day for leap year likely helped inflate both placements and marketings.
  • Cash cattle trade was active in the $188.00 t $190.00 range in the Plains on Thursday, with the highest prices in the northern market. It appears this week’s cash cattle activity will top the all-time high of $188.75 posted in June 2023.  
  • Wholesale beef prices rose Thursday, with Choice firming 29 cents to $313.73 and Select up $1.02 to $303.73. Movement totaled 118 loads for the day.
  • April live cattle continue to edge sideways in consolidative trade, with support layered at $187.325 and $186.275. Initial resistance remains at $189.425.

 

Lean hog futures are mixed at midsession.

  • April hogs are edging lower for the fourth straight session amid weakening technicals.
  • The CME lean hog index extended its seasonal climb, rising another 33 cents to $83.54 as of March 20.
  • The pork cutout value slipped a dime Thursday to $92.08, amid drops in primal ribs and bellies. Movement totaled 197.0 loads.
  • April lean hogs are hovering around the 40-day moving average of $84.60, with support serving at $83.92. Initial resistance stands at the 10- and 20-day moving averages of $85.27 and $85.55.

 

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