Market Snapshot | Oct. 14, 2022

Corn futures are 5 to 6 cents lower at midsession.

• Corn futures are lower amid strong gains in the U.S. dollar surges higher and sharp losses in crude oil futures, in addition to weak export sales reported earlier.
• Weekly export sales for week ended Oct. 6 proved weak for corn at 200,200 MT (7.9 million bu.), compared to pre-report expectations in the range of 300,000-800,000.
• World Weather notes widespread hard freezes are expected in the U.S. Midwest from early to the middle of next week, which will end to the growing season. Immature soybeans and corn quality in a few areas could be negatively impacted.
• China could begin importing corn from Brazil as early as December, in efforts to reduce U.S. dependence and to replace supplies from Ukraine which have been limited since Russia’s invasion.
• December corn retreated to a low of $6.91 1/4, though above last Friday’s close at $6.83 1/4. Near-term support is at the 10-day moving average near $6.88, while resistance is the psychological $7.00 mark, followed by Monday’s high at $7.06 1/2.

Soybeans are down 4 to 6 cents, soymeal is up nearly $2 and soyoil is down more than 80 points.

• Soybeans are experiencing mild pressure as weekly export sales were reported on the low end of expectations. However, notable daily export sales are limiting losses.
• Weekly export sales were reported at 724,400 MT (26.6 million bu.), on the low end of the expected range of 600,000 MT to1.4 MMT.
• USDA reported notable daily export sales, with 392,000 MT of soybeans to China, 198,000 MT of soybeans to unknown destinations, and 230,000 MT of soymeal to the Philippines – all for the 2022-23 marketing year. 
• Malaysian palm oil firmed 4.6%, as Russia’s threats to pull out of the Black Sea agreement and heavy rains in Malaysia raised concerns over the global edible oil supply. However, the news has triggered little buying in soyoil.
• Brazil weather remains favorably wet from the center-south into western parts of center-west with little change likely over the next ten days, according to World Weather.
• November soybeans traded as high as $14.10 overnight, pushing above the 20-day moving average near $14.03 1/2 but have backed off and are trading near the session low at $13.89 3/4.

Winter wheat futures are 13 to 18 cents lower, with spring wheat down 9 to 11 cents.

• Wheat futures are trading lower amid a surging dollar, weaker crude and mild export sales. Traders are also positioning before the Sunday meeting in Moscow to discuss the continuance of the Black Sea grain export agreement.
• Wheat export sales were reported at 211,800 MT, just above expectations of 200,000 to 500,000 MT.
• Drought will continue in U.S. hard red winter wheat areas through the next two weeks, despite some rain in the Southern Plans late this weekend and early next week, according to World Weather.
• Reuters reports Russian officials have made a string of contradictory comments this week on whether the Black Sea grain deal is likely to be renewed; senior U.N. officials are set to travel to Moscow on Sunday to discuss the agreement.
• December SRW wheat dropped as low as $8.71 3/4, falling below last Friday’s close at $8.80 1/4. Near-term support is Thursday’s low at $8.63 and the 40-day moving average at $8.59. Near-term resistance stands at the 10-day moving average just above $8.97, and the psychological $9.00 level.

Live and feeder cattle are mostly lower in midmorning trade.

• Nearby October live cattle futures are up slightly on firmer cash trade, but deferred contracts are under pressure amid looming economic uncertainty.
• Beef export sales for week ended Oct. 6 were reported at 13,200 MT, with net sales primarily for Japan. Exports for the week of 16,500 MT were also reported, with Japan and South Korea as the primary destinations.
• Cash cattle activity started off around $145 in the Southern Plains on Thursday, reflecting about $1.00 premium compared to last week, although some feedlots held out for higher prices. Northern feedlots were seeking more than $1.00 higher prices for this week’s supplies.
• Choice boxed beef fell 13 cents Thursday, while Select firmed to $1.60. Movement surged to 196 loads, indicating a significant increase in retailer demand.
• December live cattle futures dropped under the 100-day moving average at $147.950, to a low of $146.90.

Hog futures are steady to higher, with winter-month contracts pacing gains.

• December lean hogs continue higher, posting a fresh high for the month on strong technicals and ideas cash fundamentals are firming.
• Pork export sales were 29,200 MT for week ended Oct. 6, with Mexico (8,100) reported as the primary purchaser. Exports for the week were 28,500 MT, with primary destinations being Mexico (12,100 MT) and China (5,800 MT).
• The CME lean hog index is 18 cents higher to $92.67 (as of Oct. 12), the second day in the past four in which prices have firmed. General weakness in the cash market is expected through year-end, however, an early seasonal low is possible.
• Pork cutout values dropped 87 cents Thursday, with movement slowing to 255 loads.
• December hogs rose as high as $81.90, nearing the technically significant 40-day moving average near $82.21.