Market Snapshot | April 5, 2024

Corn futures are mostly a penny lower at midmorning.

Corn futures have weakened as wheat futures came off their earlier highs.
Flooding is underway near the Great Lakes region from Wisconsin and eastern Iowa to Ohio and Pennsylvania, with no significant drying expected for a while. Some improvement is expected through early next week in the eastern Midwest. Planting delays are also expected in a part of the Delta and Tennessee River Basin where some heavy rains will occur next week.
In Brazil, Mato Grosso do Sul, Parana, Sao Paulo and southern Minas Gerais will be dry into next Monday before rain brings some relief from recent drying.
May corn futures are testing the 20-day moving average of $4.36 1/2, which is backed by resistance at $4.37 1/2. Initial support lies at the 10-day moving average of $4.34 1/4.

Soybean futures are mostly 1 to 3 cents higher, while soymeal is modestly weaker. May soyoil is around 40 points higher.

Nearby soybeans are higher, though they remain in an overall choppy pattern.
World Weather Inc. notes harvesting should advance well during the next two weeks in much of Argentina as rain will be infrequent in most areas.
Malaysian palm oil futures fell overnight but posted weekly gains, while market participants awaited March inventory data from the Malaysian Palm Oil Board.
May soybeans continue to face resistance at the 10- and 20-day moving averages of $11.89 1/4 and $11.91 3/4, while initial support lies at $11.71 1/4.

SRW wheat is 9 to 13 cents higher, while HRW is mostly 6 to 8 cents higher. HRS is 3 to 4 cents higher.

SRW wheat futures have marked the highest intraday level in over a month as corrective buying increased on the push above the 40-day moving average.
Two grain cargoes loaded by Russia’s RIF have received phytosanitary certificates, a company source told Reuters. One of the ships, loaded with 65,000 MT of wheat for Egypt’s state grain buyer, has been released from a port in Russia after being detained amid a dispute between Russian authorities and an exporter, according to the company and two sources with direct knowledge of the matter. But there are still concerns about Russia slowing grain shipments.
As of April 1, France’s ag ministry rated the country’s wheat crop as 65% good or excellent, down one point from the previous week and well below last year’s 93% level. The French wheat crop continues to be rated the lowest since 2020.
May SRW wheat surged above former resistance at the 40-day moving average of $5.60 1/2, with resistance now at $5.75 1/2. The 10-day moving average of $5.54 1/2 is initial support.

Live cattle are slightly to moderately lower, while feeders are marking sharp losses at midmorning.

Nearby live cattle are modestly lower in narrow trade as traders remain cautious amid news of the highly pathogenic avian influenza (HPAI) outbreak, though there have been no detections in the U.S. beef herd.
So far, cash cattle prices have fallen $1.24 from last week’s average.
Wholesale beef prices continued to stumble Thursday, with Choice plunging $4.15 to $297.15, while Select slid 87 cents to $296.05, narrowing the Choice/Select spread to $1.10. However, movement improved to 162 loads.
June live cattle are trading between the 100-day moving average of $176.31 and support at $174.17.

Lean hog futures are posting moderate to strong gains at midsession.

Deferred lean hog futures have posted new contract highs and are firmer for the fifth straight session amid support from seasonally firming cash fundamentals.
The CME lean hog index rose another 73 cents to $85.88, marking the largest daily gain since Feb. 21. The cash index has gained $20.83 since the seasonal low the start of the year.
The pork cutout value rose $3.24 to $98.15 amid an $11 dollar gain in primal bellies. Movement totaled 264.0 loads.
June lean hogs gapped higher at the open and have extended to a fresh contract high of $106.975, with resistance now at $107.07. Initial support lies at today’s low of $105.375.

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