10:30 a.m. Market Snapshot | June 28, 2021

Corn futures have extended early gains to 17 to 20 cents, with July leading to the upside.

Corn futures are being supported by corrective buying following recent sharp price pressure.
Moderate to heavy rains were seen across many areas of the Corn Belt over the weekend, though amounts were lighter and coverage more scattered in northern and northwestern areas of the region. More rains are expected in southern and eastern areas of the Corn Belt this week, while northwestern areas will continue to trend drier.
Roughly two-thirds of the Corn Belt has ample to surplus soil moisture after recent rains, though the one-third that is lacking typically produces a lot of bushels.
Traders are preparing for Wednesday’s Acreage and Grain Stocks Reports from USDA. Traders expect corn plantings to rise by about 2.7 million acres from March intentions. June 1 corn stocks are expected to be 4.144 billion bu., down nearly 18% from year-ago.
Weekly corn export inspections totaled 1.008 MMT (39.7 million bu.), down 43.2% from the previous week, which was revised nearly 300,000 MT higher.
December corn futures continue to find support at the 100-day moving average and has pushed above the five-day average around $5.32 1/2. Last Friday’s high at $5.42 1/4 is the next hurdle bulls must clear to extend gains.

Soybean futures are up sharply at midsession, led by new-crop November contracts. Futures are up 27 to 38 cents.

Rains fell across much the U.S. Midwest over the weekend, as expected, though a few key pockets of dryness remain, and the July weather outlook signals a return of hot weather.
A high-pressure ridge “will slowly drift more into the Plains by the end of the second week of July bringing warmer and drier conditions to the western Corn Belt,” World Weather Inc. said today. Eventually expanding dryness “will reach more deeply into Nebraska, Iowam southern Minnesota and Wisconsin during July.”
USDA’s crop condition ratings later today will be studied for signs of improvement from recent rains. As of June 20, the U.S. soybean crop was rated 60% good-to-excellent, down from 62% the previous week and down from 70% for the same week a year earlier.
Weekly soybean export inspections of nearly 104,000 MT the week ending June 24 was near the low end of expectations; Inspections for the week ending June 17 were revised 30,000 MT higher to a still light 205,155 MT.
The soyoil market will remain in focus after prices fell sharply last week in the wake of a Supreme Court ruling in favor of oil refineries attempting to gain exemptions from biofuel blending requirements.
Chart levels to watch include November soybeans’ high light week of $13.29 and last week’s low of $12.59 3/4.

Spring wheat continues to lead the way higher amid ongoing concerns over parched crops in the Northern Plains.
Rain fell across nearly 80% of the northern Plains over the weekend, “but much of it was not very great, varying from 0.05 to 0.56 inch,” according to World Weather. Limited parts of the region received “meaningful” rain, and a “dry bias remains in the soil for much of the region,” the forecaster said.
Spring wheat prices should remain a key driver this week, along with the accelerating winter harvest. USDA slashed its spring wheat rating to 27% good-to-excellent as of June 20.
USDA reported winter wheat at 17% harvested as of June 20, up from 4% the previous week and lower than the five-year average of 26%.
USDA reports the U.S. inspected 285,654 MT of soybeans for export the week ending June 24, a sharp drop from the week prior and well under expectations.
September spring wheat futures today rose as high as $8.40 3/4 a bushel, the highest price since the contract high of $8.45 3/4 on June 7.

Live cattle futures are slightly to moderately lower, while feeder cattle are posting moderate losses in most contracts.

Live cattle are consolidating within last week’s ranges as traders watch for cash markets to develop.
Last Friday’s Cattle on Feed Report was mostly neutral. Placements were lighter than expected, limiting pressure in deferred live cattle futures.
Any continuation in cash market strength should limit futures’ losses. Live steers in top U.S. cattle markets averaged $125.54 per cwt. Friday, up from $122.85 a week earlier, according to USDA reports.
Wholesale beef prices continued slumping last week, with choice cutout values on Friday averaging $304.56, down 5.8% from $323.28 at the end of the previous week.
Chart levels to watch include last week’s low and high for August futures, $120.50 and $124.60, respectively.

Hog futures are sharply higher at midsession, led by nearby July and August contracts.

Lean hog futures are seeing a continuation of Friday’s technical bounce amid oversold signals as traders wait for signals from this week’s cash markets.
Key questions this week include whether recent weakness in cash hog prices and pork cutout values continue will continue and whether the unusually wide gap between the CME lean hog index and July futures will persist.
Carcass values averaged $116.89 on Friday, down from $122.62 a week earlier, according to USDA reports. Carcass cutout values averaged $110.04 on Friday, down from $120.65 the previous week.
Chart levels to watch include the two-month low of $96.50 reached last week in August lean hogs and last week’s high at $107.20.

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