Market Snapshot | March 3, 2023

Corn futures are higher on corrective buying and spillover strength from the soy complex.
Brazil’s ag ministry says 90 additional firms have been cleared to export corn to China, increasing the total to 446. Brazil forecasts record corn shipments in 2022-23.
World Weather Inc. notes rains will increase in Argentina March 12-14 and early indications suggest nearly all areas will receive at least some moisture, though confidence for the event is low.
May corn is trading within the previous session’s range, marking an intraday high at initial resistance of $6.39 1/2. Initial support lies near $6.29 1/4.

Soybeans are being led higher by meal futures amid concerns about Argentina’s soybean crop.
The Buenos Aires Grain Exchange said it plans to further cut its estimate for Argentina’s soybean crop as the country struggles with ongoing impacts of drought and high temperatures.
Safras & Mercado lowered its Brazilian soybean crop estimate to 152.43 MMT from the previous forecast of 153.37 MMT.
Brazil weather is set to slowly improve, but Parana, Sao Paulo and Mato Grosso do Sul need a few days of complete dryness to get fields to firm up enough for more aggressive fieldwork, and that may be hard to come by for a while, states World Weather.
Malaysian palm oil futures rose overnight for, capturing gains for the fourth straight week amid expectations of tighter production and supply.
May soybeans are trading above previous resistance at the 10-day moving average of $15.16 1/2 and the 20-day moving average of $15.19. Initial support is around $15.00.

Winter wheat futures are mostly a penny to 3 cents lower, while spring wheat marks 5- to 6-cent losses.

Winter wheat futures are trading slightly lower despite a weaker U.S. dollar.
U.S. HRW wheat areas will have another opportunity for snow and rain in the second half of next week, with Kansas, Nebraska and Colorado and central Oklahoma benefiting the most, though the southwestern Plains may not get much moisture, notes World Weather.
Brazil has become the second country in the world after Argentina to approve the cultivation of genetically modified what, following a decision by the nation’s biosecurity agency, CTNbio.
May SRW wheat has traded below initial support at $7.06 3/4. Initial resistance is at $7.20 1/4.

Live cattle and feeders are notching strong gains.

Live cattle are posting strong corrective gains as bullish underlying fundamentals stir buying.
Cash sources continue to expect firmer cash cattle trade to develop.
April live cattle ended Thursday just 38 cents above last week’s average cash price but have extended the premium this morning.
Boxed beef rose on Thursday with a 67-cent gain in Choice to $288.50, while Select jumped $1.15 to $277.58, putting the Choice/Select spread at $10.92. Strong wholesale prices are keeping packer margins in the black, incentivizing them to acquire as many cattle as possible.
April live cattle are trading above the 10- and 20-day moving averages, with initial resistance near $165.67. Initial support is around $163.58.

Hog futures are mostly firmer at mid-morning.

Lean hog futures are reversing some of the previous session’s losses, though gains are seemingly capped by limited buyer interest.
The CME lean hog index rose another 7 cents to $78.65 as of March 1. April lean hog futures’ premium over the cash index narrowed to $5.20 as of Thursday’s close.
Pork cutout rose 19 cents on Thursday to $85.73, despite over a $1 drop in loins and bellies.
April lean hogs dipped as low as $83.525 but have rebounded towards initial resistance at $85.275. Initial support remains at $83.025.

Tags