Market Snapshot | Wheat extends followthrough gains

Corn futures are 4 to 5 cents firmer.

• Corn futures are posting followthrough gains, with spillover support stemming from strong gains in the wheat market.
• USDA reported corn was 78% planted, five points ahead of average. Emergence was estimated at 50%.
• South American crop consultant Dr. Michael Cordonnier raised his Brazilian corn crop forecast by 2 MMT to 129 MMT, with the safrinha crop accounting for 1.91 MMT of the increase. He projects the safrinha crop at 99.8 MMT – 78.7% of total production. Record yields are reported in Minas Gerais, Sao Paulo, Goias, Mato Grosso, Bahia, Rondonia and Tocantins. He left his Argentine corn crop estimate unchanged at 50 MMT.
• July corn futures have extended above the 10-day moving average of $4.47 1/4, with resistance now at $4.53 1/2, which is backed by the 20- and 200-day moving averages. The 10-day average is now support and backed by $4.43 3/4 as well as last week’s low of $4.36 1/2.

Soybeans are 1 to 2 cents higher, while soymeal futures are around $2.50 higher. Soyoil is around 60 points lower.

• Soybeans are trading narrowly in sideways trade, limited by technical support/resistance.
• USDA reported soybean plantings were 66% complete as of Sunday, 13 points ahead of the five-year average. Emergence was estimated at 34%, 11 points ahead of average.
• Cordonnnier left his Brazilian soybean production estimate at 169 MMT. Despite recent flooding in Buenos Aires province, Cordonnier kept his Argentine soybean estimate at 50 MMT.
• China imported 1.38 MMT of soybeans from the U.S. during April, down 43.7% from last year. Imports from Brazil dropped 22.2% to 4.60 MMT. During the first four months of the year, China imported 12.95 MMT of soybeans from the U.S., up 35.2% from the same period last year. China’s Brazilian soybean imports totaled 9.14 MMT from January through April, down 42.5% from the same period last year.
• July soybeans are facing resistance at the 10-day moving average at $10.56 1/4, while support lies at the 100- and 200-day moving averages, each trading around $10.47.

Winter wheat futures are 12 to 15 cents higher, while HRS futures are mostly 9 cents higher.

• SRW wheat futures have extended to a two-week high amid followthrough short-covering.
• USDA rated the winter wheat crop 52% “good” to “excellent” and 18% “poor” to “very poor.” On the weighted Pro Farmer Crop Condition Index (0 to 500-point scale, with 500 being perfect), the HRW crop slipped 0.2 point to 328.4. The SRW crop inched 0.1 point lower to 374.8. The modest declines came despite improvements in the top producers for both crops – Kansas for HRW and Illinois for SRW. Click here for full details.
• USDA estimated spring wheat plantings were 82% complete, well above the five-year average of 65%.
• July SRW futures are facing resistance at $5.46 1/2, while support lies at the 10-day moving average of $5.27 1/2.

Live cattle and feeders are weaker in midmorning trade.

• Nearby live cattle are pausing after two days of gains as traders wait on cash cattle trade to develop.
• Cash cattle averaged a record $226.45 last week – the fifth straight weekly gain. During that span, cash prices have surged $18.75, including four straight record highs. But another week of strong purchases has packers relatively covered on near-term needs, especially with a holiday-shortened schedule next week.
• Wholesale beef values extended higher on Monday, with Choice up $2.32 to $354.81, while Select rose $1.72 to $344.11, narrowing the Choice/Select spread to $10.70. Movement was light, however, at only 72 loads.
• June live cattle continue to trade narrowly between the 10-day moving average of $213.83 and the 20-day moving average of $211.95.

Hog futures are weaker at midsession.

• Nearby lean hogs are edging lower for the third straight session, though firming cash fundamentals and technical support are curbing sellers.
• The CME lean hog index is up another 20 cents to $91.46 as of May 16.
• Pork cutout firmed 97 cents to $101.09, the highest since the Feb. 17 peak at $102.47.
• June lean hogs continue to find support at the 10-day moving average of $98.80, while resistance stands at $100.06.