Market Snapshot | November 27, 2023

Note: USDA’s weekly export inspections data is delayed due to technical difficulties.

Corn is mostly 6 to 7 cents lower at midmorning.

• Corn futures are posting followthrough losses to fresh for-the-move lows amid technical selling.
• Brazil’s full-season corn planting reached 83% as of last Thursday, according to AgRural, behind 88% at this point last year.
• Soybean planting delays and a later harvest will threaten safrinha corn acreage in Brazil, though traders aren’t concerned with that at this time.
• December corn has extended below support at $4.60 1/4 and $4.57 1/4, with further support lying at $4.52 1/4. Initial resistance stands at $4.65 1/4.

Soybeans are mostly 3 to 4 cents lower, while December meal futures are around $2.50 higher. Soyoil futures are around 25 points higher.

• Soybean futures are favoring the downside, though technical support is curbing selling efforts.
• South America’s weather has not changed much from Friday’s expectations, notes World Weather Inc. Crop conditions will not be ideal, and worry will remain about the distribution of rain in center-west and northeastern Brazil over the next two weeks, although a boost of rainfall advertised for center-west areas early next week could induce greater improvement.
• Brazil’s soybean planting stood at 74% done as of last Thursday, according to AgRural, behind 87% on that date last year and the slowest since 2015-16.
• January soybeans are hovering mostly above the 40- and 200-day moving averages of $13.27 and $13.22 1/2, respectively, while resistance is at $13.38 1/4.

SRW wheat futures are mostly 6 to 9 cents lower, while HRW is around 4 to 6 cents lower. HRS is 3 to 8 cents lower.

• SRW wheat futures are pressing lower for the third straight session amid weak technicals.
• A small disturbance Wednesday night and Thursday of this week will bring rain to the southeastern half of the HRW wheat production region, adding more moisture to the topsoil for use in the spring, notes World Weather, though there is still need for greater precip in the west-central and southwestern Plains where the weekend storm and that of this week will not seriously change the moisture profile.
• Overnight, Pakistan tendered to buy 110,000 MT of optional origin wheat, while Bangladesh tended to buy 50,000 MT of optional origin milling wheat.
• December SRW futures have dropped below support at $5.44 3/4, though additional support is at $5.41. Initial resistance stands at $5.54 1/4.

Live cattle have turned mostly lower, while feeders are posting sharp losses at midmorning.

• December live cattle are posting mild corrective gains following Friday’s sharp losses, while other contracts have weakened.
• Last week’s cash cattle prices likely fell as the average until Friday’s trade was $176.99, 83 cents below the prior week.
• Wholesale beef prices rose Friday with Choice gaining $1.03 to $298.03, while Select firmed $1.14 higher to $268.76, widening the Choice/Select spread to $29.27. However, movement was light at only 57 loads.
• December live cattle are trading within Friday’s range, with initial resistance at $173.01, while support lies at Friday’s low of $170.075.

Lean hogs are narrowly mixed at midsession.

• Nearby lean hog futures continue to face pressure from extended weakness in the cash index and wholesale fundamentals.
• The CME lean hog index is down another 30 cents to $73.60 as of Nov. 22, extending its seasonal decline. The index is now $12.57 below last year at this time.
•  The pork cutout value fell 51 cents Friday to $84.17, led lower by a $7 drop in primal picnics. Movement totaled 210.8 loads.
• December lean hogs continue to face resistance at $68.20, while initial support remains at $66.98. Additional resistance is at $68.825, while further support lies at $66.375.