Market Snapshot | April 22, 2024

Corn futures are mostly 6 to 7 cents higher at midmorning.

Corn futures have rallied to the highest intraday level since April 1 on spillover strength from wheat.
USDA reported corn export inspections of 1.624 MMT (63.9 million bu.) during the week ended April 18, which were up 270,017 MT from the previous week and above the pre-report range of expectations from 850,000 MT to 1.5 MMT.
During March, China’s corn imports from Brazil jumped 72% to 1.18 MMT, while arrivals from the U.S. fell 78% to 109,685 MT.
World Weather notes a wet bias is still slated for the U.S. Plains, Midwest and Delta beginning later this week and lasting into the early days of May. Fieldwork may be slowed or delayed and a few areas will become excessively wet.
Too much rain coming to Rio Grande do Sul, Brazil and neighboring areas may lead to some localized flooding and a decline in summer crop conditions, according to World Weather Inc. Drying elsewhere in Brazil is normal for this time of year. Northern Mato Grosso will get additional rain for a while and most of the safrinha corn is rated favorably.
May corn has tested resistance at $4.36 and $4.38 1/2 for the first time since early April, with additional resistance serving at $4.43 1/4. Initial support lies around $4.31.

Soybean futures are mostly 9 to 10 cents higher, while soymeal is near unchanged. May soyoil is around 90 points higher.

Soybeans are notching followthrough corrective gains from Friday.
During the first quarter of 2024, China imported 7.14 MMT of soybeans from the U.S., down 50% from the previous year, while imports from Brazil surged 155% to 9.99 MMT. Market share for soybean shipments to China stood at 54% for Brazil vs. 38% for the U.S.
USDA reported soybean export inspections of 435,256 MT (16.0 million bu.) during the week ended April 18, which were down 11,314 MT from the previous week but within the pre-report range of 300,000 MT to 500,000 MT.
May soybeans have tested the 10-day moving average of $11.56 1/2 for the first time in six sessions, with additional resistance at $11.66 1/4. Initial support lies at $11.45.

SRW wheat futures are mostly 24 to 26 cents higher, while HRW futures are 21 to 23 cents higher. HRS futures are around 13 to 15 cents higher.

Wheat futures are posting strong gains and have risen to the highest level since Feb. 29 on weather concerns in the U.S., Black Sea region and parts of Europe.
The U.S. west-central Plains region will continue drier than usual for the next 10 days, according to World Weather. Russia’s Southern region will be mostly dry. Eastern Ukraine may get some rains but not likely enough to ease the dryness.
Russia’s IKAR agricultural consultancy raised its Russian 2023-24 grain export forecast by 2 MMT to 72 MMT, including 53 MMT of wheat. The wheat export estimate was up 1 MMT from its prior outlook.
Russian President Vladimir Putin ordered his government to present proposals to facilitate grain trading with other countries including India, China, Brazil and South Africa among others, which together with Russia, make up the group of countries known as the BRICS, by July 1.
USDA reported weekly export inspections of 450,275 MT (16.5 million bu.) for the week ended April 18, which were down 169,864 MT from the previous week but within the pre-report range of 300,000 MT to 650,000 MT.
May SRW wheat futures surged above former resistance at the 40-, 10- and 20-day moving averages, with the next area of resistance at the 100-day moving average of $5.88 1/2. Support lies at $5.48 1/4.

Live cattle and feeders are marking sharp gains at midmorning.

Nearby live cattle are notably higher but have pulled back from the session high as technical resistance capped the advance.
USDA estimated there were 11.821 million head of cattle in large feedlots (1,000-plus head) as of April 1, up 174,000 head (1.5%) from year-ago but 35,000 head less than the average pre-report estimate. This marked the seventh straight month with year-over-year increase in feedlot inventories. March placements of cattle into feedlots fell 12.3%, while marketings dropped 13.7%.
Choice boxed beef prices slipped 13 cents Friday to $295.67 while Select jumped $1.56 to $290.83, narrowing the Choice/Select spread to $4.84. Movement totaled 126 loads for the day.
June live cattle gapped higher at the open, clearing several layers of resistance and picking off buy stops.

Lean hog futures are slightly to moderately higher at midsession.

Hog futures are higher amid followthrough corrective strength from Friday.
The CME lean hog index is down 11 cents to $91.35 as of April 18.
The pork cutout value rose a modest 13 cents Friday to $100.09. Movement totaled 214.4 loads.
June lean hogs are facing resistance at $105.78, while initial support lies at the 10- and 20-day moving averages of $104.32 and $104.10.

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