Market Snapshot | March 15, 2023

Nearby corn futures are notching higher despite pressure from a stronger U.S. dollar and slumping crude oil futures.
USDA reported a daily export sale of 667,000 MT of corn for delivery to China during the 2022-23 marketing year.
U.S. senators reintroduced a bipartisan bill on Tuesday that would allow nationwide sales of gasoline with a higher blend of ethanol year-round, arguing expanded sales of E-15 would decrease gas prices and U.S. dependence on foreign oil.
World Weather Inc. notes central portions of Argentina will remain driest over the next ten days, though showers and thunderstorms will scatter across many areas in the nation, but more significant rain is expected in western and southern parts of the nation.
Ethanol production in week ended March 10 averaged 1.014 million barrels per day (bpd), up 4,000 bpd from the previous week, but was down 1.2% from the same week last year. Ethanol stocks increased 1.07 million barrels on the week to 26.39 million barrels.
May corn is trading within the upper range of the previous session, with $6.29 3/4 serving as initial resistance, while initial support is at $6.12 3/4.

Soybeans are mostly 8 to 14 cents lower, while May meal futures are over $2.00 lower. May soyoil is around 70 points lower.

Soybeans have reversed overnight attempts to breach $15.00 , extending lower for the fifth straight session, led by weakness in soyoil and meal futures.
Members of the National Oilseed Processors Association (NOPA) are expected to report February soybean crush at 166.1 million bu. at 11 a.m. CT, which would be down from 179.0 million bu. in January, but up from 165.1 million bu. in February 2022. Soyoil stocks are expected to be reported at 1.829. billion pounds.
Brazil rainfall has become more sporadic and lighter allowing greater sunshine and some drying to occur in parts of soybean and corn country, though much more drying is needed according to World Weather.
Brazil is poised to increase domestic soybean processing in 2023 after a drought destroyed part of Argentina’s soybean crop, reducing the country’s ability to make soymeal and soyoil at a time of high demand, according to the chief of Brazil’s oilseed lobby Abiove.
Malaysian palm oil futures rose overnight on strong export demand, coming off a near one-month low marked in the previous session.
May soybeans are trading below initial support of $14.86 1/4, with additional support lying at $14.78 3/4. Initial resistance is around $15.00.

Wheat futures are trading around a penny to 3 cents higher.

Winter wheat futures are unchanged to fractionally higher as a surging U.S. dollar is capping gains.
Turkey will continue discussions to extend the Black Sea grain deal for 12 days rather than Russia’s proposed 60 days, according to the Turkish Defence Minister.
China will auction another 140,000 MT of state-owned wheat reserves on March 22, continuing sales of state-owned wheat reserves into the domestic market which have occurred regularly since last October.
SRW wheat futures are trading within the upper range of the previous session, with $7.04 3/4 serving as initial resistance, while $6.82 1/2 is initial support.

Live cattle are posting moderate-to heavy losses while feeders are surging lower.

Nearby live cattle are under pressure from outside markets despite persisting bullish fundamentals.
Cash cattle are expected to trade higher again this week, though active trade is likely to be delayed until after USDA’s Cattle of Feed Report Friday afternoon.
Boxed beef rose on Tuesday, with Choice up $1.05 to $285.91 and Select was up 94 cents to $274.56, taking the Choice/Select spread to $11.35. Movement was light at 91 loads, but price strength is crucial in sustaining profitable packer margins, despite increasing cash prices.
April live cattle gapped lower at the open and has extended below initial support of $162.65, while further support lies at $162.25. Initial resistance is at the 50-day moving average of $163.08.

Hog futures are lower with heavier losses in spring- and summer-deferred contracts.

April lean hogs are lower as macroeconomic concerns hover over the complex.
The CME lean hog index is up 3 cents to $79.89 as of March 13, extending the recent price upswing.
Pork cutout fell 43 cents on Tuesday to $88.37, led by a $3.77 drop in hams. Movement increased to 337.3 loads amid the drop, indicating retailer buyer interest remains.
China is experiencing surging cases of African Swine Fever (ASF), likely reducing hog output later this year, according to farm managers and analysts.
April lean hogs are pivoting around initial support around $84.84, with additional support lying at $84.28. Initial resistance is at the 40-day moving average near $85.42.

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