Market Snapshot | November 15, 2023

Corn is mostly 3 to 6 cents lower at midmorning.

• Corn futures are under mild pressure amid weakness in SRW wheat and soybean futures combined with unsupportive outside markets.
• USDA reported daily sales of 124,000 MT to Japan during 2023-24, bringing total corn sales over the past three days to 369,382 MT.
• The Energy Information Administration resumed its ethanol data releases today after a hiatus last week. Ethanol production in week ended Nov. 10 averaged 1.047 million barrels per day, 3.6% higher than the same week last year. Ethanol stocks declined to 21,000 million barrels.
• December corn is trading mostly between the 10- and 20-day moving averages of $4.72 3/4 and $4.78 1/2, while additional resistance and support are at $4.70 and $4.81 1/4.

Soybeans are mostly 3 to 5 cents lower, while December meal futures are around $7.50 lower. Soyoil futures are narrowly mixed.

• Soybeans are facing mild weakness, in tandem with meal futures, following an overnight reach to the highest level since late August.
• A Reuters poll indicates analysts expect the National Oilseed Processors Association (NOPA) to report soybean crush at 187.2 million bushels. If realized, that would be up 13.2% from September, 1.5% higher than October 2022 and the largest figure for any month. Soyoil stocks are expected to rise to 1.188 billion pounds.
• Several more days of hot, dry weather is expected in center-west, center-north and northeastern Brazil, but showers and thunderstorms increasing late this weekend and next week will ease stress, according to World Weather Inc. More flooding rain is expected in southern Brazil this week and in neighboring areas of southern Paraguay and far northeastern Argentina.
• January soybeans extended as high as $13.98 1/2 overnight, though resistance at $13.98 is curbing buying, while initial support remains at $13.75.

SRW wheat futures are mostly 5 to 7 cents lower, while HRW is fractionally to 2 cents higher. HRS wheat unchanged to 2 cents lower.

• SRW wheat futures are posting losses amid corrective strength in the U.S. dollar following Tuesday’s sharp selloff.
• World Weather reports rain is still needed in west-central and southwestern U.S. hard red winter wheat areas and in the Pacific Northwest, while recent warming is helping winter crops in Montana to resume emergence and establishment after very cold late-October weather.
• Ukraine’s state railways have restricted grain deliveries to Odesa, one of the country’s key Black Sea ports, due to repairs. It did not say when the repairs are expected to be completed.
• France’s ag ministry now expects the country to export 10.1 MMT of wheat outside the EU in 2023-24, up 300,000 MT from its previous forecast. The ministry lowered its wheat export forecast within the bloc by 540,000 MT to 6.79 MMT.
• December SRW futures are facing resistance at the convergence of the 10- and 20-day moving averages of $5.75 1/4, while support at $5.66 1/2 is providing support.

Live cattle are moderately higher, while feeders are posting sharp gains at midmorning.

• December live cattle are moderately higher for the third straight session, though strong overhead resistance is curbing momentum.
• No cash cattle trade activity has occurred yet this week and will likely remain slow until after Friday’s Cattle on Feed Report.
• Wholesale beef prices fell Tuesday, with Choice dropping $2.18 to $295.67, while Select declined $1.36 to $267.88. Movement totaled 144 loads for the day.
• December live cattle are trading narrowly within Tuesday’s range, with the 200-day moving average of $177.76 serving up solid resistance, while initial support remains at $174.32.

Lean hogs are mostly weaker at midsession.

• Lean hog futures are chopping around unchanged, with technicals limiting buying efforts despite hints a seasonal low has formed in the cash index.
• The CME lean hog index is up 8 cents to $76.13 as of Nov. 13. While the index posted a new low for the move the previous day, it has now firmed four of the past six days, suggesting it is stabilizing.
• The pork cutout value rose 83 cents Tuesday to $87.60, led by a $3.70 jump in primal hams. Movement increased to 303.2 loads.
• December lean hogs are hovering below the 10-day moving average of $72.30 and have tested support at $71.90. Additional support is at $71.50, while resistance stands at $72.85.