10:30 a.m. Market Snapshot | Aug. 5, 2021

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Corn futures are 6 to 13 cents higher at midsession.

  • Futures rose, but remained within yesterday’s ranges, after USDA’s weekly export sales report surpassed trade expectations.
  • USDA reported net corn sales of 830,200 metric tons (MT) for 2021-22. Sales, which were for the week ended July 29, went primarily to Mexico (238,800 MT), Japan (210,700 MT) and “unknown destinations” (101,700 MT).
  • For 2020-21, net corn sales of 68,200 MT were down from the previous week but up “noticeably” from the prior four-week average. China had net cancellations of 112,506 MT of old-crop corn purchases but took delivery of 909,500 MT during the week.
  • Today’s National Drought Monitor reflected ongoing drought degradation for northern and western areas of the Corn Belt. But rains are moving across some of these areas today.

Soy complex futures are higher, with soybeans up 10 to 15 cents.

  • Soybeans climbed, but remained within this week’s range, on hopes for stronger exports and lingering concern over dry soils in parts of the Midwest.
  • Iowa, southeastern Minnesota and other parts of the Corn Belt are expected to receive rain over the next week, before weather turns drier around the middle of the month, World Weather Inc. said today.
  • More rain “will be needed soon to maintain improvements in yield potentials,” World Weather said. “Soybean yields will be threatened most significantly if rain does not return soon, with smaller reductions in corn yields possible as well.”
  • USDA reported net weekly soybean sales totaled 11,400 MT for 2020-21, down 33% from the prior four-week average and in the middle of expectations for sale of -100,000 to 100,000 MT. China had net old-crop sales reductions of 41,036 MT for the week.
  • For 2021-22, net sales of 424,800 MT were on the high end of expectations for 200,000 to 500,000 MT and included “unknown destinations” (142,000 MT) and China (129,000 MT).
  • Also today, USDA announced a daily soybean sale of 300,000 MT to unknown destinations for 2021-22.

HRS wheat futures are up 2 to 5 cents and leading gains. SRW wheat futures are up 3 cents. And HRW wheat futures are mixed to higher.

  • Net U.S. wheat sales for the week ended July 29 totaled 308,300 MT, down 40% from the previous week and down 28% from the previous four-week average. Sales expectations ranged from 350,000 to 600,000 MT.
  • Today’s National Drought Monitor showed continued drought degradation in spring wheat producing areas and into the central Plains, renewing buying interest and keeping milling wheat supply concerns in focus.
  • September HRW futures fell as low as $7.13, still above Monday’s low of $7.04 and above key chart levels, including the 14-day moving average around $7.01 1/2.

Cattle futures are slightly to moderately lower.

  • Live cattle are down in a modest pullback from gains earlier this week. Feeder futures are also lower as corn prices jumped.
  • Product market strength continues, with Choice and Select jumping $3.50 and $3.66, respectively, at midweek. A solid 146 loads changed hands.
  • Live steers yesterday averaged $124.61, up from last week’s average of $121.68. The western Corn Belt saw additional trade at $125 while trade got started in Kansas and Texas at $121.
  • USDA today reported net weekly beef sales of 15,000 MT, down 33% from the previous week and 26% from the previous four-week average.

Lean hog futures are down sharply, with the October and December contracts dropping the $3 daily limit.

  • Hog futures fell to the lowest levels in over three weeks after wholesale pork prices fell sharply yesterday.
  • Pork cutout values yesterday fell $4.68 to $122.99, USDA reported, as all cuts, except for bellies, declined. Carcasses on national direct markets averaged $102.66, up $2.26 from Tuesday.
  • USDA reported net weekly pork sales of 38,800 MT, up 1% from the previous week and up 32% from the prior four-week average. Purchases included 18,300 MT by China. Pork export to China totaled 4,900 MT.
  • Nearby August lean hog futures remain at a discount to the CME lean hog index, which was $111.78 for the two days ending Aug. 3, up 19 cents from the previous price.
  • October lean hogs fell as low as $87.125, the lowest intraday price since July 12.
 

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