Market Snapshot | April 15, 2024

Corn futures are mostly 3 to 5 cents lower at midmorning.

• Corn futures are being led lower by spillover from wheat, soybeans and soymeal.
• USDA reported daily corn sales of 165,000 MT to Mexico. Of the total, 135,000 MT is for delivery during 2023-24 and 30,000 MT for 2024-25.
• USDA reported corn export inspections of 1.332 MMT (52.5 million bu.) during the week ended April 11, down 111,133 MT from the previous week but within the pre-report range of expectations from 1.2 MMT to 1.5 MMT. 
• Extreme heat that moved into the central U.S. over the weekend will continue during the first half of the week. A cooldown during the second half of this week isn’t expected to be as cold as advertised Friday. Most crop regions in the U.S. will receive some rains over the next 10 days, according to World Weather Inc.
• Rainfall in center-west and southern safrinha corn areas of Brazil is expected to be sufficient for improved topsoil moisture early this week, but subsoil moisture will stay lighter than desired in Mato Grosso do Sul and western Parana.
• May corn futures are trading within Friday’s upper range, though resistance at the 20-day moving average of $4.34 1/2 continues to limit the upside, while initial support lies at $4.29 1/4.

Soybean futures are mostly 10 to 13 cents lower, while soymeal is $4.00 to $6.00 lower. May soyoil near unchanged.

• Nearby soybeans are facing techincal pressure, with selling in soymeal futures casting a further shadow over price.
• Analysts expect the National Oilseed Processors Association (NOPA) to report its members crushed 197.8 million bu. of soybeans during March, based on a Reuters poll. That would be a 6.2% increase from February, 6.4% greater than March 2023 and the highest level ever for any month. Soyoil stocks are expected to total 1.792 billion pounds.
• Brazil’s soybean harvest was estimated to be 84% complete as of last Thursday, a six-percentage point advance from the previous week, according to AgRural.
• USDA reported soybean export inspections of 432,905 MT (15.9 million bu.) during the week ended April 11, which fell 58,967 MT from the previous week but were within the pre-report range from 375,000 to 600,000 MT.
• May soybeans are trading within Friday’s range as resistance at the 10- and 40-day moving averages of $11.73 3/4 and $11.75 1/4 curb buying efforts, while initial support remains at $11.58 3/4.

Winter wheat futures are 7 to 10 cents lower, while HRS futures are mostly 3 to 6 cents lower.

• Wheat futures are facing pressure from a stronger U.S. dollar and technical resistance.
• Precip will continue to be limited in U.S. HRW country in the first week of the outlook, though there will be some shower and thunderstorm activity, notes World Weather. Any rain will be beneficial, but much more will be needed, especially in central and western production areas. Freezes Friday through Sunday will likely occur mainly in central and northwestern areas.
• USDA reported wheat export inspections of 551,278 MT (20.3 million bu.) during the week ended April 11, up 34,443 MT from the previous week. Net inspections outpaced the expected pre-report range of 350,000 to 525,000 MT.
• May SRW wheat futures are being pressured by the 10-day moving average of $5.53 1/2, while support is at $5.43.

Live cattle and feeders are sharply higher at midsession.  

• Nearby live cattle are notably higher amid corrective buying.
• Cash cattle prices declined for three straight weeks, though the drop in cash prices has been smaller compared to losses in futures, indicating the reduced cattle herd continues to underpin the market.
• Choice boxed beef prices jumped $2.20 Friday to $300.57, while Select rose a relatively modest 39 cents to $295.54, widening the Choice/Select spread to $5.03. Movement totaled 106 loads.
• June live cattle are testing the 10-day moving average, currently trading at $174.36 for the first time since March 22, though additional resistance at the 100-day moving average of $176.33 continues to limit buying efforts. Initial support lies at $173.58 then at $171.92.

Lean hog futures are posting losses at midsession.

• April hogs are extending last week’s losses amid a technical pullback.
• The CME lean hog index is up another 72 cents to $90.56 as of April 11. The five-year average was an $8.14 rise in the cash index from now until mid-May, when the May contract will be cash settled.
• The pork cutout value slipped 9 cents Friday to $101.20, led by an $11 drop in primal ribs. Movement totaled 307 loads. $101.89
• June lean hogs have tested the 40-day moving average of $101.89, with additional support lying at $100.74. Meanwhile, the 20-day moving average of $103.31 is serving as initial resistance.