Market Snapshot | December 6, 2023

Corn futures are mostly a nickel to 6 cents lower at midmorning.

• Corn futures are taking spillover weakness from the soy complex and plummeting crude oil futures, along with technical-based selling.
• Brazil’s December corn exports are expected to reach 6.86 MMT versus 7.29 MMT in December 2022, according to Anex.
• Ethanol production averaged 1.076 million barrels per day (bpd) during the week ended Dec. 1, up 65,000 bpd from the previous week and just 1,000 bpd less than the same week last year. Ethanol stocks rose 60,000 barrels to 21.439 million barrels.
• March corn was turned back by the 50-day moving average and is testing the 20-day moving average of $4.85 1/4.

Soybeans are mostly 5 to 9 cents lower, while January meal futures are more than $5.00 lower. January soyoil futures are around 30 points lower.

• Soybeans are trading lower for the fifth straight session, with meal and soyoil pressure weighing on the complex.
• USDA reported daily soybean sales of 136,000 MT for delivery to China during 2023-24.
• World Weather Inc. notes Brazil rainfall may not be normal in center-west or northern parts of center-south, but there will be enough rain to support crops. Soil moisture is expected to improve as time moves along, though it will be a slow process.
• Anec projects Brazil’s December soy exports will reach 3.58 MMT, compared to 1.52 MMT in December 2022. Soymeal exports are expected to total 2.04 MMT, versus 1.35 MMT a year ago.
• January soybeans are trading within Tuesday’s range as the 200-, 10- and 40-day moving averages of $13.20 1/4, $13.29 and $13.33, respectively, serve up resistance. Support lies around $13.00.

SRW wheat futures are around 4 to 10 cents higher, while HRW is mostly 2 to 4 cents higher. HRS is steady to a penny lower.

• SRW wheat futures are pressing higher for the seventh straight session amid strong export demand from China.
• USDA reported daily SRW wheat sales of 372,000 MT to China for 2023-24, bringing total daily sales this week to 1.01 MMT.
• Russia’s winter crop conditions are better than average, with only 4% rated poor, according to the head of Russia’s state weather center Hydrometcentre. He noted the five-year average is an 8% poor rating.
• March SRW futures have surged above the 100-day moving average of $6.32 3/4 to the highest level since Aug. 28, though resistance at $6.47 3/4 is limiting a move higher. Support is at $6.27 3/4.

Live cattle are posting sharp losses, while feeders are slightly lower in most contracts.

• Live cattle are trading lower amid technical pressure and fading cash and wholesale fundamentals.
• Packers have bought a few hundred cattle in all regions at $171.00 so far this week, $3.00 to $4.00 lower than last week.
• Wholesale cattle prices stumbled Tuesday with Choice falling $1.24 to $293.75, while Select fell $3.70 to $259.13, widening the Choice/Select spread to $34.62. Movement totaled 155 loads.
• February live cattle are leaning on support at Monday’s low of $166.625. While that level has been spiked, there wasn’t active followthrough selling. Initial resistance is at $170.06.

Lean hogs are mixed at midsession.

• Traders are modestly narrowing the discount December hogs hold to the cash market, which is providing light support.
• Deferred hogs are facing technical pressure as traders remain cautious amid an extended decline in the cash index.
• The CME lean hog index is down another 24 cents to $69.60 as of Dec. 4, extending the seasonal price decline.
• The pork cutout value rose 24 cents to $84.67 Tuesday. Movement totaled 372.2 loads.
• February lean hogs are choppy as the 10-day moving average at $69.33 continues to curb the upside, while support at $68.67 is limiting selling.