Market Snapshot | December 4, 2023

Corn futures are mostly 2 cents higher at midmorning.

• Corn futures have rebounded from earlier weakness, led higher by increasing gains in the soy complex and SRW wheat.
• USDA reported daily corn sales of 267,044 MT for delivery to Mexico during 2023-24.
• Corn export inspections totaled 1.158 MMT (45.6 million bu.) during week ended Nov. 30, which were up 749,201 MT from the previous week and above the pre-report range of 350,000 to 900,000 MT.
• March corn is trading mostly between the 10- and 20-day moving averages of $4.81 3/4 and $4.85. Additional support is at $4.79 1/4, with further resistance at $4.89 3/4.

Soybeans are mostly 1 to 3 cents higher, while January meal futures are around $5.00 higher. January soyoil futures are around 30 points higher.

• Soybean futures are shaking off earlier losses amid increasing gains in meal and soyoil futures.
• USDA reported daily soymeal sales of 183,000 MT to the Philippines during 2023-24.
• Due to damage from irregular rainfall and heat primarily in Mato Grosso, AgRural cut its Brazilian soybean crop estimate y 4.4 MMT to 159.1 MMT. The firm stated if the hot and dry conditions persist, additional cuts would be likely. AgRural estimated soybean planting was 85% complete as of last Thursday, behind 91% on this date last year.
• World Weather Inc. reports Brazil’s monsoon flow is unlikely to evolve for at least 10 more days, though airmass thunderstorms associated with weak troughs of low pressure will continue periodically. The rain will be erratic and lighter than usual in most of center west, northeast and northern parts of center south Brazil, though completely dry weather is not expected.
• Soybean export inspections totaled 1.11 MMT (40.7 million bu.), which were down 464,425 MT from the previous week and shy of the pre-report range of 1.25 to 2.0 MMT.
• January soybeans have tested the 200-day moving average of $13.21 1/2 and support at $13.17 3/4, with additional support at $13.10 1/2. Meanwhile, the 40-day moving average of $13.32 1/2 stands as initial resistance.

SRW wheat futures are around 14 to 17 cents higher, while HRW is mostly 9 to 10 cents higher. HRS is 7 cents higher.

• SRW wheat futures are marking solid gains for the fifth straight session, with a large Chinese purchase underpinning prices despite a stronger U.S. dollar.  
• USDA reported daily SRW wheat sales of 440,000 MT for 2023-24.
• Ukraine’s grain exports have totaled around 13.4 MMT so far in 2023-24 marketing season, down from exports of 18.3 MMT through Dec. 5 last year.
• Canada’s wheat crop is estimated at 32.0 MMT by Statistics Canada, up from September’s forecast of 29.8 MMT and higher than the 31.1 MMT traders expected.
• Wheat export inspections totaled 187,955 MT (6.9 million bu.), which were down 100,503 MT from the previous week and below the pre-report range of 225,000 to 350,000 MT.
• March SRW futures have breached resistance at $6.12 1/4 for the first time in nearly a month, with additional resistance at $6.21 1/2. Initial support lies at $6.00 1/2.

Live cattle are slightly to moderately lower, while feeders are posting sharp losses.

• Live cattle have posted wide daily trading ranges, with the market swinging sharply in both directions so far today.  
• Sales of live cattle last week ranged from $174.00 to $175.00 in all regions with the bulk of sales at $175.00. Dressed sales were mainly $275.00.
• Wholesale beef prices were mixed Friday, with a $1.56 drop in Choice to $297.46, while Select rose 74 cents to $265.49. Movement was strong last week, indicating retailers are gearing up for year-end beef features.
• February live cattle have dropped to a near 11-month low, though support at $166.66 is limiting selling efforts, with resistance is at $170.16.

Lean hogs are posting notable gains at midsession.

• Nearby lean hogs are gaining back Friday’s losses, though strong overhead resistance is limiting the appetite for stronger buying.
• The CME lean hog index is down 77 cents to $70.58 as of Nov. 30, extending the seasonal price decline.
• The pork cutout value slid another 28 cents Friday to $83.55. Movement totaled 322.2 loads for the day.
• February lean hogs have extended above the 10-day moving average of $70.63 and resistance of $71.47 but are trading within Friday’s range. Additional resistance stands at Friday’s high of $72.00, while support lies at $69.50 and $69.27.