Market Snapshot | February 6, 2023

Corn futures are 1 to 2 cents lower at midmorning.

Corn futures are on pressure from soybeans and outside markets.
USDA reported daily corn export sales for 111,800 MT to Japan for 2022-23 and 200,000 MT to Mexico – split evenly between 2022-23 and 2023-24.
Soy harvesting delays are pushing back Brazil’s safrinha corn planting, as AgRural data indicates only 12% of the second corn area planted in the center-south region, which is down from 24% at this time a year ago.
Most of Argentina will get rain late Sunday into early next week, offering temporary relief from recent hot, dry weather. But rains will not likely be enough to end drought, making follow-up rains imperative, says World Weather.
USDA reported export inspections of 480,205 MT (18.9 million bu.) for week ended Feb. 2, which was down 62,786 MT from the previous week.
March corn is trading narrowly, within the previous session’s range, with initial support lying near $6.72 3/4 and initial resistance standing the 10-day moving average near $6.78.

Soybeans are 8 to 10 cents lower. March meal futures are around $6.00 lower and March soyoil is around 30 points lower.

Soybeans are moderately lower as traders monitor political tension between U.S. and China after a Chinese surveillance balloon was shot down over the Atlantic Ocean on Saturday.
Brazilian farmers have harvested 9% of the planted soybean area in the 2022-23 cycle through last Thursday, which was a 4% increase from the previous week, according to AgRural.
World Weather says rain and interruptions to fieldwork occurred in much of Brazil during the weekend, with frequent rounds of showers and thunderstorms expected to occur during the next two weeks.
Export inspections for week ended Feb. 2 showed 1.83 MMT (67.2 million bu.) inspected for export, which was down 101,075 MT from the previous week.
March soybeans have traded as low as $15.18 1/1, with the 10-day moving average maintaining initial support in the area. Initial resistance is at $15.39 1/2.

SRW wheat futures are around 7 to 8 cents lower, while HRW is unchanged to 3 cents lower. HRS futures are 3 to 5 cents lower.

Wheat futures are lower as the U.S. dollar index is sharply higher, keeping U.S. wheat less competitive on the global market.
World Weather notes U.S. hard red winter wheat areas were advertised wetter for early next week, though western areas are unlikely to receive substantial precipitation any time soon.
Russian wheat exports may reach 30 MMT to 35 MMT in the second half of 2022-23, according to the agricultural ministry. SovEcon estimates January exports for the country reached 3.8 MMT, which was close to record levels.
Export inspections totaled 546,355 MT (19.7 million bu.) during the week ended Feb. 2, which was a 90,628-MT increase over the previous week.
March SRW has traded as low as $7.45 1/2. Support is at $7.42. Initial resistance stands at $7.71 3/4.

Live cattle are mixed, with nearby contracts making mild gains, while feeders post modest losses.

Live cattle are choppy following last week’s rally to contract highs, as traders await cash cattle trade to develop. Feeders are choppy despite weakness in the grain complex.
Cash cattle prices rose last Friday, though the official average price will be reported later today by the USDA.
With packers still thought to be short-bought on near-term slaughter needs, traders will begin the week with bullish hopes for cash trade.
Wholesale beef prices fell on Friday with a 36-cent drop in Choice and $2.05 drop in Select, taking the Choice/Select spread to $13.13.
April live cattle are trading narrowly within the previous session’s range, with initial support lying near $163.71 and initial resistance at $164.38.

Hog futures are marking heavy losses at midsession.

Lean hog futures are marking sharp losses, with futures premiums over the cash market pressuring the market.
The CME lean hog index is up 20 cents to $73.05 (as of Feb. 2), marking the sixth increase in the past eight sessions.
February lean hogs are trading around $2.00 above the cash index, while the April contract’s premium is down to around $10.20.
Pork cutout value dropped $2.41 on Friday to $79.09, which was led by over an $11 drop in bellies. Packers are noting retailer resistance at prices of $80.00, though movement continues to remain solid, indicating consistent demand.
April lean hogs are holding just above support at $82.75. Stronger support is at the October low at $82.625.

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