Market Snapshot | December 14, 2023

Corn futures are chopping around unchanged at midmorning.

Corn futures have eased from earlier highs, despite supportive outside markets.
USDA reported corn export sales of 1.419 MMT for week ended Dec. 7, up 10% from the previous week but down 12% from the four-week average. Sales were near the top-end of the pre-report range between 800,000 MT and 1.6 MMT.
After announcing harsh economic measures to address rising inflation, Argentina’s new government published a decree Wednesday establishing a new special exchange rate scheme to boost exports and dollar flow. Unlike previous editions, the program does not have an ending date set.
March corn continues to be limited by the 20- and 10-day moving averages of $4.84 and $4.84 3/4, while initial support lies at Wednesday’s low of $4.77 1/2.

Soybeans are mostly 2 to 4 cents higher, while January meal futures are around $2.00 lower. January soyoil futures are about 70 points lower.

Soybean futures continue to be limited by technical resistance at the 200-day moving average.
USDA reported daily soybean sales of 400,000 MT to unknown destinations for 2023-24.
USDA reported weekly soybean export sales of 1.084 MMT, down 23% from the previous week and 46% from the four-week average. Sales were toward the low-end of the pre-report range of 900,000 MT to 1.8 MMT.
Brazilian farmers, some of whom were forced to replant soybeans due to adverse weather, are facing a seed shortage as suppliers have run out of the main cultivars, according to a chief executive of a seed company.
January soybeans are trading within Wednesday’s range, with initial support at $12.98 3/4, while resistance stands at the 200-day moving average of $13.18 1/2.

SRW wheat futures are 3 to 4 cents higher, while HRW wheat is mostly a penny lower. HRS futures are mostly 1 to 3 cents higher.

SRW wheat futures are trading sideways in consolidative trade despite sharp losses in the U.S. dollar.
USDA reported wheat export sales of 1.491 MMT during the week ended Dec. 7, a marketing-year high. Sales were near the top-end pre-report range of 1.2 MMT to 1.6 MMT.
Wheat production in the United Kingdom totaled 13.98 MMT this year, according to the ag ministry, down 10% from last year. Planted area declined 4.9% and yields fell 5.4%.
March SRW futures are consolidating between the 10- and 200-day moving averages of $6.22 1/4 and $6.24 and the 40- and 20-day moving averages, currently at $6.01 and $6.00 1/2.

Live cattle are slightly to moderately higher, while feeders are posting strong gains at midsession.

Live cattle are posting corrective gains in a continuation of the recent move off the lows.
So far, only a small amount of cash cattle have traded around $1.00 to $2.00 lower in the northern market, though volume wasn’t enough for a true gauge of this week’s market.
Choice boxed beef prices fell $1.14 to $291.64, while Select rose 55 cents to $259.21. Movement was strong at 176 loads.
USDA reported net beef sales of 10,600 MT, which were up notably from the previous week and 67% from the four-week average. Net sales totaled 5,100 MT for 2024.
February live cattle are trading within Wednesday’s range, with initial resistance at $168.425 and initial support at the 10-day moving average of $166.875.

Lean hogs are posting sharp gains at midsession.

February lean hogs are posting strong gains amid a rise in the cash index for the first time since early November.
The CME lean hog index rose 43 cents to $68.13, the first daily increase since Nov. 8. It’s going to take more than one daily uptick in the index to signal a seasonal low is in place.
The pork cutout value fell 3 cents to $83.93, while movement totaled 303.0 loads.
USDA reported net pork sales of 28,200 MT for 2023, up 9% from the previous week and 15% from the four-week average. Net sales totaled 12,900 MT for 2024.
February lean hogs extended above the 10-day moving average of $69.08, with additional resistance at the 20-day moving average of $70.37. Initial support lies at $67.69.

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