Market Snapshot | February 9, 2023

Corn futures are mostly 2 to 4 cents lower at midmorning.

Corn futures are trading modestly lower, with spillover weakness coming from sinking crude oil futures.
China became the main destination of Brazilian corn exports in January by volume, surpassing traditional importers like Japan, Iran and Spain, according to revised trade data released by the Brazilian government.
Argentina is still expecting rain in all its grain and oilseed production areas during the weekend and early next week, according to World Weather Inc.
USDA reported corn export sales of 1.16 MMT for week ended Feb. 2, which was down 27% from the previous week, but up 19% from the prior 4-week average. Sales for the week were near the top-end of pre-report estimates of 600,000 MT and 1.2 MMT.
March corn is trading within the previous session’s range and is trading narrowly between $6.81 and initial support of $6.74 1/4.

Soybeans are 5 to 8 cents lower, while March meal futures are more than $4.00 higher, and March soyoil is around 130 points lower.

Soybeans are lower amid profit-taking after disappointing weekly export sales and on spillover from the crude oil market.
Net soybean export sales of 459,400 MT were reported for week ended Feb. 2, which was down 38% from the previous week and 49% from the prior 4-week average. The week’s sales were towards the low-end of pre-report estimates which ranged from 400,000 MT to 1.0 MMT.
World Weather says most of Brazil will continue to receive frequent rains, keeping harvest progress a little slow, though some fieldwork will advance around rains, but longer stretches of dry weather are needed to ensure beans are harvested in time to allow the safrinha corn crop to be planted during the favorable period.
Malaysian palm oil futures retreated from a one-month high on Thursday as traders booked profits, while losses in rival edible oils due to higher-than-expected U.S. supplies added pressure.
March soybeans have dipped below the 20-day moving average of $15.19 1/2 Next support is at $15.07 3/4. Resistance is at $15.33 3/4.

SRW wheat futures are mostly 1 to 2 cents lower, with HRW 6 to 11 cents lower. Spring wheat is around 5 to 6 cents lower.

Winter wheat futures are lower on a corrective pullback after gains yesterday. HRW futures leading losses on potential moisture prospects early next week.
Strategie Grains raised its forecast for European Union soft wheat production for a second straight month, citing good growing conditions so far.
Net wheat export sales of 131,400 MT were reported for week ended Feb. 2, which was 4% lower than the previous week and 56% from the prior 4-week average. Sales for the week were slightly above the low-end of the expected range between 125,000 and 450,000 MT.
March SRW futures are trading between initial resistance of $7.71 1/4 and initial support of $7.53.

Live cattle and feeders are higher with feeders posting stronger gains in summer-deferred months.

Live cattle are marginally higher as traders cautiously await cash cattle trade to develop.
Cash cattle prices are expected to firm again this week, though after futures reached contract highs on Tuesday, at premiums to the cash market, traders will likely wait until higher cash trade is confirmed before continuing major buying efforts.
Choice boxed beef rose 48 cents to $267.20 on Wednesday, while Select fell $4.17 to $253.16, widening the Choice/Select spread to $14.04. Packers moved 110 loads on the day, consistent with the first two days of the week.
USDA reported net beef sales of 16,400 MT for 2023, primarily to South Korea (4,400 MT, including decreases of 400 MT), Japan (35,00 MT, including decreases of 400 MT) and Mexico (2,700 MT)
April live cattle are trading narrowly between initial resistance near $161.43 and initial support of $160.23.

Hog futures are lower, with deferred months marking sharp losses.

Nearby lean hog futures are marginally lower despite further indications that a seasonal low has been formed in the cash index.
Deferred futures are facing heavy selling pressure as recent volatility around the lows continues.
The CME lean hog index is up 24 cents to $73.75 as of Feb. 7, marking the fifth straight daily gain, with nine of the last 11 days being higher.
Pork cutout value firmed 73 cents on Wednesday to $79.29, with movement slowing to 259.7 for the day.
USDA reported net pork sales of 28,800 MT for 2023, primarily to Mexico (12,700 MT), South Korea (4,700 MT) and China (3,400 MT).
April lean hogs are trading between initial resistance at around $85.07 and initial support near $82.69.

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