Market Snapshot | April 8, 2024

Corn futures are mostly a penny higher at midmorning.

• Corn futures are choppy in directionless trade to start the week.   
• China’s grain production increase faces a bottleneck, state media reported earlier today. “Under the current situation where it is increasingly difficult to increase production, my country has launched a new round of action to increase grain production capacity,” state-run newspaper Economic Daily wrote.
• USDA reported corn export inspections of 1.420 MMT (55.9 million bu.) during the week ended April 4, which were down 51,859 MT from the previous week but above the pre-report range of expectations from 1.0 MMT to 1.4 MMT.
• May corn futures are trading mostly above the 10- and 40-day moving averages, which have converged around $4.33 1/2, while initial resistance serves at the 20-day moving average of $4.36 1/4.

Soybean futures are mostly 1 to 2 cents higher, while soymeal is more than $3.00 higher. May soyoil is nearly 100 points lower.

• Nearby soybeans have slipped from earlier highs as technical pressure and soyoil weakness weighs on the market.
• Brazil’s soybean harvest reached 78% of the planted area as of last Thursday, according to AgRural.
• USDA reported soybean export inspections of 484,328 MT (17.8 million bu.), which were down 63,023 MT from the previous week but within the pre-report range from 350,000 to 700,000 MT.
• Malaysian palm oil futures fell for the third straight session overnight after notching a one-year high last week, as losses in rival soyoil prompted profit-taking.
• May soybeans have tested the 10- and 20-day moving averages of $11.88 1/2 and $11.91 3/4, respectively. Initial support is at $11.82 3/4.

SRW wheat is 4 to 5 cents higher, while HRW is mostly 7 to 8 cents higher. HRS is 3 to 7 cents higher.

• SRW wheat futures are working higher for the fourth straight session amid corrective buying.
• India is expected to produce 105 MMT of wheat this year, according to the country’s flour miller’s group, 7 MMT (6.25%) lower than the Indian government estimates. That would be down from the 112.74 MMT the Indian government estimated last year, though private forecasters said production was at least 10% lower than the official forecast.
• Russian wheat export prices rose again last week, with analysts downgrading their estimates of shipments in March.
• USDA reported wheat export inspections of 497,534 MT (18.3 million bu.) during the week ended April 4, which were down 71,613 MT from the previous week but within the pre-report range of 300,000 to 500,000 MT.
• May SRW wheat is trading within Friday’s range, with the 40-day moving average of $5.59 3/4 serving as support, while initial resistance stands at $5.74 3/4.

Live cattle are modestly higher, while feeders have turned mixed after a firmer start.

• Nearby live cattle are posting corrective gains in the wake of last week’s sharp losses.
• Choice boxed beef prices rose a modest 2 cents to $297.17 Friday, while Select dropped $1.35 to $294.70, widening the Choice/Select spread to a still-tight $2.47. Movement totaled 136 loads.
• Because the emerging influenza infection in cattle is not the same as highly pathogenic avian influenza, the American Association of Bovine Practitioners (AABP) will refer to it as Boving Influenza A Virus (BIAV), which more accurately depicts it. That will be how Pro Farmer references the virus.
• June live cattle are challenging initial resistance at $173.13, while support lies at Friday’s low of $171.40.

Lean hog futures are mixed at midsession.

• April lean hog futures rebounded from earlier weakness and are near unchanged. The contract expires on Friday and is settled against the cash index on April 16.  
• The CME lean hog index is up another 43 cents to $86.31 as of April 4, continuing the seasonal rise since the beginning of this year.
• The pork cutout value fell 40 cents to $97.75, led lower by a $14 drop in primal bellies. Movement totaled 228.2 loads.
• June lean hogs are trading within Friday’s upper range, with initial support at $106.18, while resistance stands at last Friday’s contract high of $108.00.