Market Snapshot | April 10, 2024

Corn futures are mostly a penny to 3 cents higher at midmorning.

• Corn futures are modestly higher on spillover from wheat, despite a surging U.S. dollar.
• World Weather Inc. reports today’s weather still includes increasing rainfall later this week into next week for safrinha corn areas of Brazil and a good mix of rain and sunshine is expected in Argentina.
• Ukraine has shipped 360,000 MT of corn to China so far this month, according to Spike Brokers. The export data firm says a total of 600,000 MT of Ukrainian corn could be shipped to China this month, with another 400,000 MT likely to be exported in May.
• Ethanol production averaged 1.056 million barrels per day (bpd) during the week ended April 5, down 17,000 bpd (1.6%) from the previous week but up 10.1% from year-ago. Ethanol stocks declined 208,000 barrels to 26.208 million barrels.
• May corn futures continue to test support at the 10- and 40-day moving averages of $4.33 1/2 and $4.32 3/4, with additional support at $4.28 3/4. Initial resistance stands at the 20-day moving average of $4.35 1/2.

Soybean futures are mostly 9 cents lower, while soymeal is around $2.00 lower. May soyoil around 40 points lower.

• Nearby soybeans are edging lower despite recent export activity, as soymeal and soyoil are also facing price pressure.
• USDA reported daily soybean sales of 254,000 MT to unknown destinations for 2023-24.
• Malaysian palm oil futures settled higher overnight, snapping three consecutive sessions of losses, supported be lower expected inventories, though higher premiums limited upside.
• May soybeans have dropped below support at $11.69 1/2, with additional support at $11.64 1/2. Initial resistance stands at the 40-day moving average of $11.76 1/4.

SRW wheat is 3 to 4 cents higher, while HRW is mostly 11 to 16 cents higher. HRS is 8 to 9 cents higher.

• Wheat futures are being led higher by HRW contracts amid expectations of hot, dry conditions across a portion of U.S. growing areas.
• West-central portions of U.S. HRW wheat country are too dry and crop stress is expected to worsen as hot, dry weather evolves this weekend, according to World Weather.
• Russia has seized companies belonging to agricultural firm AgroTerra and placed them under temporary management, according to a decree signed by President Vladimir Putin. The company, which is a producer and supplier of mass commodity crops and specialty, value-added crops to top food processors, said it was operating as usual and that its primary focus was the ongoing planting campaign.
• May SRW wheat futures continue to find support at the 10- and 40-day moving averages, which have now converged around $5.57 3/4. Meanwhile, initial resistance stands at $5.69 1/4.

Live cattle are choppy, while feeders are modestly weaker.  

• Nearby live cattle are trying to extend corrective gains for a third straight session, though overhead technicals continue to limit buyer interest.
• Choice boxed beef prices rose 2 cents Tuesday to $302.09, while Select slid another 37 cents to $299.90. Movement totaled 146 loads.
• The National Cattlemen’s Beef Association (NCBA) expressed strong criticism of USDA’s National Agricultural Statistics Services decision to halt publication of the July Cattle Inventory Report and discontinue county estimates for crops and livestock, among other changes that we reported in “Evening Report” on Tuesday.
• USDA’s Animal and Plant Health Inspection Service website shows the H5N1 virus, Bovine Influenza A Virus (BIAV) as we now refer to it, was detected at two dairy farms in New Mexico. That brings the total number of confirmed BIAV cases to 20 in six states—Texas (9), New Mexico (4), Kansas (3), Michigan (2) and Idaho (1).
• June live cattle are trading with Tuesday’s upper range, limited by resistance at the 10-day moving average of $175.68, while initial support lies at $173.47.

Lean hog futures are mostly lower at midsession.

• April hogs are supported by the seasonally strengthening cash index. Deferred lean hog futures are lower amid profit-taking.
• The CME lean hog index is up another 83 cents to $87.88 as of April 8. The index has risen an average of 68.25 cents in the last four days, accelerating the seasonal climb.
•  The pork cutout value rose 38 cents Tuesday to $100.71, while movement totaled 291.2 loads.
• June lean hogs are working on a key bearish reversal after marking a new high earlier in the session. Today’s high at $109.65 stands as resistance, while support lies at $107.43.