10:30 a.m. Market Snapshot | Sept. 10, 2021

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Corn futures are mixed at midsession as the market awaits USDA crop reports.

  • USDA’s September Crop Production report today will feature the first objective yield surveys for corn and soybeans. Analysts expect USDA to raise its estimate for the U.S. corn crop about 1.3% from its previous forecast to 14.94 billion bu., based on a Reuters survey.
  • USDA’s average national corn yield estimate is expected to be raised to 175.8 bu. an acre from 174.6 bu. per acre.
  • Net weekly U.S. corn sales totaled 905,800 MT for 2021-22 and included Mexico (334,100 MT) and “unknown destinations” (234,900 MT) as the top buyers. The sales were in the middle of trade expectations that ranged from 600,000 MT to 1.2 MMT.
  • A total of 2.98 MMT in sales were carried over from the 2020-21 marketing year, which ended Aug. 31, USDA said in its export sales report.
  • Archer-Daniels-Midland Co. says it plans to resume export loadings at its Louisiana Gulf Coast terminals in Ama and Reserve by the end of September, while repairs at its Destrehan terminal will take a few weeks longer. ADM also said it has resumed loading export shipments using its midstream equipment on the lower Mississippi River.

Soybean futures are posting gains around a penny. Soymeal is up $2.80 to $5.00. And soyoil futures are posting losses generally in the 65 to 80 point range.

  • USDA is expected to boost its forecast for the U.S. soybean crop by about 0.9% to 4.377 billion bu. and hike its projected average national yield to 50.4 bu. an acre, from 50.0 bu. per acre previously.
  • Net weekly soybean sales for 2021-22 marketing year totaled 1.47 MMT and included China (764,000 MT) and unknown destinations (453,600 MT) as the top buyers. Trade expectations ranged from 1 MMT to 1.6 MMT. A total of 1.81 MMT in sales were carried over from the 2020-21 marketing year.
  • USDA announced a daily sale of 132,000 metric tons (MT) of soybeans to China for the 2021-22 marketing year, which followed a similarly-sized sale yesterday. Since the beginning of August, USDA has reported over 3.7 million MT of U.S. soybean sales to China or “unknown” destinations.
  • Argentine producers will likely bring in a 48.8 MMT soybean crop in 2021-22, forecasts the Rosario Grains Exchange. That’s down 200,000 MT from the exchange’s previous forecast as it expects better returns for corn to shift some acres.

Wheat futures are mostly lower, led by declines of as much as 1.7% in spring wheat. Spring wheat futures are down 6 to 15 cents, SRW wheat is 6 to 8 cents lower and HRW wheat is down 1 to 4 cents.

  • Winter wheat futures fell to the lowest levels in over six weeks overnight on pressure from weak corn and soybean markets and followthrough from sharp losses earlier this week.
  • USDA is expected to trim its projections for U.S. and global ending wheat stockpiles in its 11:00 a.m. CT Supply and Demand report.
  • U.S. wheat supplies at the end of 2021-22 are expected to total about 616 million bu., down about 1.8% from USDA’s current figure, based on analyst estimates.
  • Net weekly wheat export sales totaled 388,400 MT, up 32% from the previous week and up 54% from the prior four-week average. Expectations ranged from 200,000 to 450,000 MT.
  • December SRW futures fell as low as $6.83 1/2, the lowest intraday price since $6.81 1/2 on July 27. December HRW futures fell as low as $6.76 3/4, the lowest intraday price since July 30.

Live cattle futures are mostly lower, led by declines of over $1 in feeders.

  • Cattle futures are under continued pressure from weakness in boxed beef prices and concerns over demand.
  • Boxed beef movement yesterday totaled 132 loads, continuing an upturn in movement this week. However, Choice cutout values fell $2.28 to $332.58, extending a decline to three-week lows.
  • Cash market reports reflected relatively active trading averaging around $124.28, down about $1.50 from last week. Some additional cash cattle trade took place in Iowa yesterday around $126, in Nebraska at $125 and in Kansas at $123.
  • Net weekly beef sales of 12,400 MT reported for 2021 were down 20% from the previous week and down 2% from the prior four-week average.

Lean hog futures are under moderate to sharp pressure, with futures trading near four-week lows.

  • Hog futures remain under pressure from weaker wholesale pork, as well as expectations for a seasonal rise in market-ready supplies and a slowdown in consumer demand.
  • Average carcass cutout values fell $1.70 yesterday to $108.70 as hams dropped over $10. Movement was about 344 loads. Carcass base prices on national direct markets fell $3.29 to an average of $86.42.
  • The latest CME Lean Hog index fell 78 cents to $97.96, the lowest since $97.38 on March 26 but still over $10 above nearby futures. The index is down 20% from a seven-year high hit mid-June.
  • Slaughter so far this holiday-shortened week totaled an estimated 1.427 million head, down from 1.907 million head for the same period last week, USDA reported.
  • Net weekly pork export sales of 33,800 MT were up 1% from the previous week and up 47% from the average for the previous four weeks and included Chinese purchases of 15,000 MT.
  • October lean hogs fell as low as $83.725, the lowest intraday price since $83.325 on Aug. 10.

 

 

 

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