Market Snapshot | March 21, 2023

Nearby corn is trading slightly lower, taking spillover weakness from SRW wheat futures.
USDA reported a daily corn sale of 136,000 MT for delivery to China during the 2022-23 marketing year. This follows last week’s daily corn sales totaling 2.111 MT to China for the 2022-23 marketing year.
South American crop consultant Dr. Michael Cordonnier slashed his Argentine corn estimate another 1 MMT to 36 MMT, with a neutral to lower bias going forward. Cordonnier left his Brazilian corn estimate unchanged at 121 MMT.
Argentina’s rain event coming up over the next several days will provide some much-needed relief from months of drought, although more moisture will be needed to end the drought, according to World Weather Inc.
May corn failed to find sustained buying above the 20-day moving average around $6.34. Support is at the 10-day moving average around $6.24 1/2.

Soybeans are fractionally to 3 cents lower, while May meal futures are around $1.50 higher. May soyoil is around 150 points lower.

Soybeans are slightly lower with weakness in soyoil pressuring prices.
South American crop consultant Dr. Michael Cordonnier cut his Argentine soybean estimate another 2MMT to 26 MMT. If forecast rains turn out disappointing, the estimate may be lowered again. Cordonnier left his Brazilian soybean estimate unchanged at 151 MMT.
World Weather notes Brazil’s crop areas from southern Mato Grosso do Sul and Parana to Minas Gerais will continue to experience improving weather, providing an opportunity for more aggressive field progress to take place in late soybean harvesting and safrinha corn planting.
Malaysian palm oil futures rose overnight after falling for three straight sessions, though weaker rival veggoils and stronger currency limited gains.
May soybeans have edged as high as $14.97, breaching initial resistance at the 10-day moving average of $14.95 1/4, before turning lower. Further resistance stands at the 20-day moving average near $15.04 1/2. Support lies near $14.69 1/2.

SRW wheat futures are mostly 8 to 12 cents lower, while HRW is 3 to 7 cents lower. Spring wheat is fractionally to a penny higher.

Winter wheat futures are under pressure despite a lower U.S. dollar.
Drought still has control of the U.S. high Plains region and any precipitation that occurs in the next 10 days will do little to change that status especially in southwestern areas, notes World Weather.
Russia supports the New Land Grain Corridor project intended to supply grain to the Chinese market, Russian Prime Minister Mikhail Mishustin said, further stating, like China, Russia “gives paramount attention to ensuring food security,” at a meeting with Chinese President Xi Jinping on Tuesday.
Unseasonal rains and hailstorms have damaged ripening, winter-planted crops, including wheat in India’s fertile northern, central and western plains, exposing thousands of producers to losses and raising the rusk of further food price inflation.
SRW wheat futures dropped below the 10-day moving average at $6.92 1/4.

Live cattle and feeders are solidly higher at midmorning.

Nearby live cattle are inching higher following recent weakness as bullish fundamentals persist.
The cash cattle market fell $1.23 last week and cash sources expect about steady prices this week.
Choice boxed beef fell $2.33 on Monday to $281.02, though Select rose $15.0 to $273.94, narrowing the Choice/Select spread to $7.08. Movement totaled 107 loads. Wholesale beef prices have been declining the past two weeks, though underlying fundamentals remain bullish.
April live cattle are trading sideways between initial support of $161.60 and initial resistance near $162.78.

April lean hogs are extending lower on eroding technicals from heightened macroeconomic concerns.
The CME lean hog index is down 46 cents to $9.55 as of March 17, ending the run of cash market strength.
Pork cutout firmed 69 cents on Monday to $81.64, led by gains in hams, loins and butts. Packers moved 318.1 loads on the day.
April lean hogs are trading narrowly within the lower range of the previous session. Initial resistance persists around $78.73.

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