Market Snapshot | January 11, 2024

Corn futures are mostly a penny to 3 cents lower at midmorning.

• Corn futures are edging lower in step with SRW wheat ahead of tomorrow’s USDA updates.
• USDA reported daily corn sales of 175,000 MT to Mexico during 2023-24, the first flash sale since Dec. 19.
• USDA reported corn export sales of 487,600 MT for the week ended Jan. 4, up 33% from the previous week but down 52% from the four-week average. Net sales were near the low end of the pre-report range from 400,000 MT to 1.0 MMT.
• The Rosario Grain Exchange raised its Argentine 2023-24 corn production forecast by 3 MMT to a record 59 MMT.
• The International Grains Council (IGC) increased its 2023-24 world corn crop forecast by 7 MMT to 1.23 billion metric tons.
• March corn continues consolidate between the 10-day moving average of $4.63 1/4 and initial support at $4.55 1/4.

Soybeans are mostly 1 to 2 cents higher, while soymeal is modestly lower. March soyoil is around 40 points higher.

• Soybean futures are higher for the first time in six sessions, though soymeal pressure is limiting gains.
• USDA reported soybean export sales of 280,400 MT for the week ended Jan. 4, which were up 39% from the previous week but down 74% from the four-week average. Net sales were shy of the pre-report range of 325,000 to 950,000 MT.
• The Rosario Grain Exchange raised its 2023-24 soybean forecast by 2 MMT to 52 MMT.
• March soybeans are trading narrowly mostly between initial resistance of $12.45 3/4 and initial support of $12.31 1/4.

SRW wheat futures are mostly a nickel lower, while HRW is 7 to 8 cents lower. HRS futures are around 4 cents lower.

• Wheat futures continue to be limited by overhead techincals and a slightly stronger U.S. dollar.
• USDA reported wheat sales of 128,100 MT during the week ended Jan. 4, which were down 3% from the previous week and 77% from the four-week average. Net sales fell short of analysts’ pre-report range of 200,000 MT to 450,000 MT.
• IGC raised its forecast for the 2023-24 global wheat crop by 1 MMT to 788 MMT.
• March SRW futures are pivoting mostly around the 40-day moving average of $6.06 3/4, while initial support lies at $6.05 1/2. Buying efforts are being limited by the 100-day moving average of $6.10 1/4.

Live cattle and feeders are favoring the upside in choppy trade.

• Nearby live cattle are modestly higher, though buying is being limited by resistance and lacking cash cattle trade.
• Cash cattle are expected to trade higher for the fourth consecutive week, though the winter storm and another wave coming, along with arctic temps this time has increased uncertainty.
• Wholesale beef values rose Wednesday, with Choice gaining $2.91 to $283.07, while Select surged $4.11 to $266.94, narrowing the Choice/Select spread to $16.13. Movement totaled 137 loads.
• USDA reported net beef sales of 12,200 MT for 2024. Net sales reductions of 900 MT were carried over from 2023.
• February live cattle are facing initial resistance at $171.60, while support remains at $170.02.

Lean hogs are mixed at midsession.

• February lean hogs are pausing after marking solid gains in the past five sessions despite notable gains in the cash index.
• The CME lean hog index is up 63 cents to $66.46 as of Jan. 9, now $1.41 off the Jan. 1 low.
• The pork cutout value rose $2.13 to $86.66 amid a rise in all cuts except primal ribs. Movement totaled 253.01 loads.
• USDA reported net sales pork of 23,300 MT for 2024, while net sales reductions of 73,500 MT were carried over from 2023.
• February lean hogs are extending modest gains as initial resistance at $72.70 continues to curb buying efforts, while support is at $70.975.