GRAIN CALLS
Corn: 2 to 4 cents lower.
Soybeans: 7 to 10 cents lower.
Wheat: Winter wheat 12 to 16 cents lower; spring wheat 4 to 8 cents lower.
GENERAL COMMENTS: Wheat futures extended a profit-taking slide overnight and soybean futures fell for the first day in three. Corn futures were also lower. Malaysian palm oil futures fell 4.0%, erasing part of the 10% gain posted over the past three sessions. Nymex crude oil futures are down slightly but still above $114 a barrel. U.S. stock index futures signal a stronger open, while the U.S. dollar index is up around 200 points this morning.
USDA reported a daily sale of 318,200 MT of soybeans for delivery to “unknown destinations” during the 2021-22 marketing year.
President Joe Biden and alliance leaders gathered in Brussels for a summit to discuss providing further support to Kyiv. Ukrainian Agriculture Minister Roman Leshchenko submitted his resignation yesterday, Ekonomichna Pravda said, adding that he had not provided a reason. The European Union will distribute 500 million euros ($550 million) to help farmers and allow them to grow crops on fallow land to mitigate food price spikes and potential shortages resulting from Russia’s war in Ukraine. Global grains trader Bunge Ltd said its Mykolaiv, Ukraine, port facility sustained “some damage” during fighting in the Black Sea port city early Tuesday. The facility, which includes an oilseed processing plant, grain storage and export loading operations, has been closed since Russia invaded Ukraine on Feb. 24.
Farmers will plant more acres to crops due to rising commodity prices, reflecting a multiyear trend around high commodity prices, Corteva Inc. Chief Technology Officer Sam Eathington said yesterday, according to Bloomberg. “When you start seeing the corn, soybean, cotton, wheat commodity numbers, you’re going to bring acres into production if you can,” he said. Crop chemical supplies are tight because of supply-chain disruptions, and some farmers are having difficulty with availability of products. Corteva hasn’t seen any dramatic change in farmer seed choice, he added.
The U.S. Trade Representative’s office has reinstated 352 expired product exclusions from U.S. “Section 301” tariffs on Chinese imports. The reinstated product exclusions will be effective retroactively from Oct. 12, 2021, and extend through Dec. 31, 2022. They cover a wide range of the initially estimated $370 billion worth of Chinese imports that former president Donald Trump hit with punitive tariffs of 7.5% to 25%.
Jordan made no purchase in its tender to buy 120,000 MT of optional origin wheat.
CORN: USDA reported net U.S. corn sales for the week ended March 17 of 979,500 MT for 2021-22, down 47% from the previous week and down 29% from average for the previous four weeks. Net weekly sales for 2022-23 totaled 6,100 MT. Sales for 2021-22 were expected to range from 800,000 to 1.8 million MT and sales for 2022-23 were expected to range from 100,000 to 400,000 MT.
SOYBEANS: Net weekly soybean sales totaled 412,200 MT for 2021-22, down 67% from the previous week and down 70% from the prior four-week average. For 2022-23, there were net sales reductions of 13,000 MT for China. Exports of 549,200 MT were down 23% from the previous week and down 38% from the prior four-week average. Sales were expected between 500,000 MT to 1.3 MMT for 2021-22 and 300,000 to 800,000 MT for 2022-23.
May soybeans are trading within Wednesday’s range after rising 22 1/4 cents yesterday to $17.18 3/4, the highest settlement for a nearby contract since September 2012.
WHEAT: Net weekly wheat sales totaled 155,700 MT for 2021-22, up 7% from the previous week but down 51% from the prior four-week average. Net sales for 2022-23 totaled 367,300 MT. Sales were expected to range from 100,000 to 600,000 MT for 2021-22 and 100,000 and 300,000 MT for 2022-23.
LIVESTOCK CALLS
CATTLE: Steady-weaker
HOGS: Steady-mixed
CATTLE: Live cattle futures may face pressure after initial cash trade this week came in weaker than expected. Sales yesterday were reported in the $137 to $138 range in the Southern Plains and mostly around $221 in the northern dressed market. Prices were both lower than anticipated and feedlots unexpectedly moved cattle earlier than expected. Choice cutout values rose $1.63 yesterday to $261.60, a four-week high. Movement totaled 113 loads. Net weekly U.S. beef sales totaled 27,500 MT for 2022, a marketing-year high and up 29% from the average for the previous four weeks. Lead buyers included South Korea at 9,000 MT and China at 7,600 MT. Exports totaled 41,800 MT, also a marketing-year high.
USDA’s Cold Storage Report late yesterday showed beef stocks rose contra-seasonally during February, hitting a record 532.5 million lbs. for the month.
HOGS: Lean hog futures may see followthrough from a late slide yesterday as softening cash benchmarks limit buying interest. The CME lean hog index is down 56 cents, its second straight daily decline. Pork carcass cutout values retreated from a morning upswing and ended the day at $106.39, down 32 cents but still near a two-week high. Movement totaled 299 loads. USDA’s Cold Storage Report showed pork stocks climbed a larger-than-normal 45.9 million lbs. during February, ending the month at 480.4 million lbs., up 0.6% from a year earlier. Net weekly pork sales of 23,200 MT for 2022 were down 39% from the previous week and down 30% from the prior four-week average. Lead buyers included Mexico at 9,200 MT and South Korea at 4,800 MT.
April lean hogs rose $2.30 yesterday to $102.55, while June jumped $2.90 to $122.975 after posting a contract high at $124.45.