Market Snapshot | August 25, 2023

Corn is mostly a penny to 2 cents higher at midmorning.

Corn futures are chopping around unchanged, as weakness in SRW wheat pressures prices.
On Day 4 of the Pro Farmer Crop Tour, scouts found an average yield of 182.80 bu. per acre, compared to 183.81 bu. last year and the three-year average of 184.13 bu. per acre. In Minnesota, scouts found an average yield of 181.34 bu. per acre vs. 190.39 bu. in 2022 and the three-year average of 187.63 bu. per acre.
Pro Farmer will release final yield and production estimates at 1:30 p.m. CT.
Canada said today it will participate in a dispute settlement proceeding between the U.S. and Mexico regarding genetically modified corn imported tortillas and dough, citing concerns about Mexico’s stance on the matter.
December corn continues to chop sideways in a narrow range, with the 20-day moving average of $4.91 3/4 serving as initial resistance, while the 10-day moving average of $4.85 1/4 serves as initial support.

Soybeans are 7 to 13 cents higher, while September meal futures are over $2.00 higher. September soyoil is around 70 points higher.

Soybean futures are extending higher for the third straight session led by strength in soyoil. Though soyoil strength has eased, pulling the complex from earlier highs.
USDA reported a daily sale of 121,000 MT to China during 2023-24.
On Day 4 of the Crop Tour, scouts found average soybean pod counts in a 3’x3’ square of 1,190.41 in Iowa, compared to 1,174.4 in 2022 and the three-year average of 1,179.51. In Minnesota, average pod counts totaled 984.39, compared to 1,1700.75 in 2022 and the three-year average of 1,071.31.
The heatwave that’s impacted the central U.S. will finally abate with much cooler conditions arriving this weekend into early next week, notes World Weather Inc.
Malaysian palm oil futures posted a second straight weekly gain overnight, underpinned by stronger rival vegetable oils, despite weak export data.
November soybean have traded as high as $13.90 1/2, the highest intraday level since July 28, with resistance serving at $13.94 1/4. Initial support lies at $13.67.

SRW wheat futures are mostly 5 to 7 cents lower, while HRW futures are 2 to 3 cents higher. HRS contracts are a penny to 3 cents higher.

SRW wheat futures have turned lower amid persisting strength in the U.S. dollar.
Russia’s Defense Ministry said earlier today that its forces had struck a Ukrainian port infrastructure used for military purposes.
Russian President Vladimir Putin is expected to hold in person talks with Turkey’s President Tayyip Erdogan soon, according to earlier comments from the Kremlin, as Ankara attempts to persuade Moscow to return to the Black Sea grain deal.
Polish agriculture minister Robert Telus commented today that Poland, Bulgaria, Hungary, Romania and Slovakia support extending a EU ban on Ukrainian grain imports to those countries until the end of the year, allowing transit of such cargoes for export elsewhere.
September SRW futures have traded as low as $5.87 3/4, the lowest level since Aug. 18, testing support at $5.96 1/2 and $5.89. Additional support lies at the Aug. 17 low of $5.86 1/4, while resistance stands at $6.13 1/4.

Live cattle and feeders are mixed.

Live cattle are posting mild corrective gains following Thursday’s strong gains to the highest close since Aug. 11.
Higher cash cattle trade supported bulls yesterday, though volume remains limited. This week’s cash average is currently $185.75, up from $185.04 last week.
Wholesale beef prices were steady on Thursday, with Choice rising 58 cents to $317.63, while Select rose 32 cents to $291.92, bringing the Choice/Select spread to $25.72. Movement totaled 102 loads for the day.
October live cattle futures are trading within Thursday’s upper range, hovering mostly above the 20- and 40-day moving averages of $180.45 and $180.51, with support serving at $179.92. Thursday’s high of $180.90 serves as initial resistance.

Lean hogs are posting strong gains at midsession.

Lean hogs are notably higher following an extended period of weakness, with wholesale strength supporting futures.
The CME lean hog index is projected to fall 97 cents to $96.40.
The pork cutout value jumped $4.13 on Thursday to $104.92, led by a $15 increase in bellies. Though strength will likely be short-lived as the summer grilling and BLT seasons wind down.
October lean hogs gapped notably higher at the open and have traded as high as $83.125, breaching the 20- and 40-day moving average of $81.61 and $82.01. Resistance is at $83.98, while support lies at today’s low of $81.20.

Tags