Market Snapshot | January 13, 2023

Corn futures are 1 to 2 cents higher at midmorning.

Corn is marking moderate gains following Thursday’s government updates and ahead of a long holiday weekend. Strength in crude oil futures remains supportive.
Grains will trade normal hours today, however all markets and government offices will be closed Monday, Jan. 16, in observance of Martin Luther King Jr. Day. There will be no Pro Farmer market reports next Monday. Grain markets will reopen at 7:00 p.m. CT on Monday, Jan. 16, for the overnight session.
U.S. farmers enrolled 3.154 million acres of corn in the U.S. Department of Agriculture’s prevent plant crop subsidy program in 2022, a notable increase from 639,000 acres the year before.
China has given safety approvals to more imported genetically modified organism crops, including corn and soybeans, according to the agriculture ministry.
March corn traded as high as $6.74 3/4, breaching the 100-day moving average of $6.73 3/4, where initial resistance remains. Initial support lies around $6.60 where the 10-,20-and 40- day moving averages have nearly converged.

Soybeans are 6 to 8 cents higher, while March meal futures are over $3.50 lower and March soyoil is 20 points lower.

Soybeans are continuing higher following USDA’s updates on Thursday which proved bullish for U.S. production and stocks. Persisting forecasts for mostly dry weather in Argentina underpinning gains.
Northern Argentina received some significant rain Thursday and early today, though most central and southern regions remained dry, according to World Weather Inc.
Brazil’s soybean harvest and Safrinha crop planting prospects are good with most of the excessive rainfall of late expected to slowly wind down while the wetter bias briefly drifts more westwardly, said the forecaster.
U.S. farmers enrolled 986,000 acres of soybeans in the U.S. Department of Agriculture’s prevent plant crop subsidy program in 2022, which was an increase from 341,000 acres the year before.
China imported 10.56 MMT of soybeans in December, up 19.1% from last year and the highest monthly total since June 2021, as importers tried to ease tight supplies. In total, China imported 91.08 MMT of soybeans for the year which reflected a 5.6% decline from the previous year.
A move by Indonesia, the top palm oil exporter, to restrict shipments and boost domestic biodiesel consumption is set to squeeze global vegoil supplies already undercut by lower output in southeast Asia and Latin America.
March soybean futures pushed above $15.00 overnight, with resistance standing at $15.09 1/2. Initial support stands at $14.83 1/4.

Wheat futures are mixed, with 3 to 5 cent gains in HRW.

SRW wheat future are trading unchanged to slightly higher ahead of a long weekend, as outside markets continue to prove supportive.
World Weather Inc. notes U.S. hard red winter wheat production areas will encounter precipitation events during mid-week next week and the following weekend, though it will not be enough to break down drought.
U.S. farmers enrolled 1.17 million acres of wheat in the Department of Agriculture’s prevent plant program in 2022, which reflected a significant increase from 293,000 acres the previous year.
Ukraine’s agriculture ministry reported Ukrainian farms had harvest nearly 51 million tonnes of grain from 94% of the expected area as of Jan. 12.
March SRW traded as high as $7.48 1/2, with first resistance standing at the 10-day moving average of $7.49 3/4, while initial support lies at $7.28.

Live cattle are mixed at midsession, with feeders marking heavy losses.

Nearby live cattle futures are slightly lower as traders await direction from the cash cattle market.
Livestock markets will trade normal hours today but will be closed on Monday in observance of Martin Luther King Jr. Day. There will be no Pro Farmer market reports next Monday. The Livestock complex will resume trade at 8:30 a.m. Tuesday, Jan. 17.
Cash cattle negotiations lingered on Thursday with limited sales as feedlots tried to buy cattle at lower prices and feedlots wanted more money for supplies.
February live cattle futures ended Thursday at $157.55, off 19 cents from last week’s average cash price, indicating traders expect cash trade to eventually take place at around steady prices.
Wholesale beef dropped $3.24 for Choice and $1.09 for Select, though movement was strong at 132 loads.
February live cattle traded as low as $156.90, dipping below initial support at $157.00 for the second straight session. Additional support lies at $156.45. First resistance stands near $158.00.

Hog futures are lower, with deferred contracts posting heavier losses.

Lean hogs are grinding lower as cash fundamentals remain weak.
The CME lean hog index dropped another 47 cents to 75.49 (as of Jan. 11) and is just 43 cents above last year’s level at this time when the cash market was already $5.00 above its seasonal low.
Pork cutout values fell another $1.35 on Thursday to $79.33, dropping to the lowest level since Jan. 20, 2021.
With hog futures short-term oversold and a holiday weekend ahead, some corrective buying could ensue, though upside will be limited until cash fundamentals show signs of a seasonal low.
February lean hog futures are trading within the previous session’s range. Initial resistance stands at the previous session’s close of $78.75, with first support at Thursday’s low of $77.575.

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