Market Snapshot | December 2, 2024

Market Snapshot

Pro Farmer's Market Snapshot
Market Snapshot | December 2, 2024
(Pro Farmer)

Corn futures are mostly a penny higher at midmorning.

  • Corn futures have rebounded from earlier losses to notch modest gains in tandem with wheat futures.
  • Analysts expect USDA to report corn-for-ethanol use at 462.3 million bu. in October, up 22.1 million bu. (5.0%) from September and 2.3 million bu. (0.5%) above year-ago.
  • AgRural reported corn planting was 94% complete in Brazil as of last Thursday.
  • USDA reported corn export inspections of 935,859 MT (36.8 million bu.) during the week ended Nov. 28, down 73,008 MT from the previous week but within the pre-report range of expectations from 650,000 MT to 1.2 MMT.
  • March corn futures have tested resistance at the 40-day moving average of $4.32 3/4, which is backed by the 20-day, currently trading at $4.35 1/2. The 100-day moving average of $4.27 1/4 serves as initial support.

Soybeans are mostly 6 to 7 cents lower, while soymeal futures are around $3.00 lower. Soyoil is modestly lower.

  • Soybean futures are facing pressure from extended selling in meal futures and technical weakness.
  • USDA reported daily soybean sales of 134,000 MT to China for 2024-25.
  • Analysts expect USDA to report U.S. processors crushed an all-time record 210.6 million bu. of soybeans in October. That would be up 24.1 million bu. (12.9%) from September and 9.2 million bu. (4.6%) above year-ago.
  • Brazil’s soybean planting reached 91% as of last Thursday, according to AgRural, the fastest pace since 2018. AgRural noted crop conditions are generally favorable, though dryness is a concern in some far southern areas.
  • USDA reported soybean export inspections of 2.09 MMT (76.7 million bu.) during the week ended Nov. 28, down 29,019 MT from the previous week but near the upper-end of the pre-report range of expectations from 1.475 MMT to 2.4 MMT.
  • January soybean futures are being limited by resistance at the 10-day moving average of $9.89 1/4, while support is layered at $9.82 1/4 and last week’s low of $9.75 1/4.

Winter wheat futures are mostly 2 to 4 cents higher, while HRS futures are mostly a penny higher.

  • Wheat futures are modestly firmer amid corrective buying despite strong gains in the U.S. dollar.
  • Russia’s wheat export quota from Feb. 15 to June 30 will be 11 MMT, according to the Eurasian Economic Union Council (EEUC), down from 29 MMT in the same period in 2024. Quotas for corn, barley and rye will be set at zero during the same period, unlike previous seasons when no separate restrictions were applied.
  • Argentina wheat traders are seeking to close their first significant sales to China since the 1990s, the head of the country’s top grain-exporting group told Bloomberg. China is making overtures for wheat purchases after it authorized Argentine shipments earlier this year, said Gustavo Idigoras, president of CIARA-CEC, whose members include the major agricultural trading houses.
  • The Australian Bureau of Agricultural and Resource Economics (ABARES) raised its national 2024-25 wheat production estimate by 100,000 MT to 31.9 MMT amid good yields.
  • USDA reported wheat export inspections of 296,106 MT (10.9 million bu.) for the week ended Nov. 28, down 68,677 MT from the previous week and near the low-end of the pre-report range of expectations from 200,000 to 400,000 MT.
  • March SRW futures are trading within Friday’s lower range, with support serving at the previous session low of $5.42 3/4, while initial resistance stands at $5.53 1/4.

Live cattle are mixed, while feeders are modestly weaker at midsession.

  • Nearby live cattle opened firmer amid support from last week’s cash market strength, but buyer interest has faded.
  • Cash cattle traded sharply higher last week, with the average price likely above where nearby live cattle futures ended on Friday. That suggests traders sense the recent cash market strength may end as packers will have fresh contracted supplies available with the flip of the calendar.
  • USDA’s Animal and Plant Health Inspection Service is working to re-establish a biological barrier in Panama to prevent further northward movement of New World screwworm (NWS) into Mexico. The agency is also calling on producers along the southern U.S. border to remain vigilant and report any suspicious cases immediately.
  • Choice boxed beef prices slipped 74 cents on Friday to $310.52, while Select was unchanged at $274.30. Movement was a light 57 loads.
  • December live cattle are facing resistance at $188.875, while initial support lies at $187.675.

Hog futures are moderately firmer at midmorning.

  • Traders are narrowing the discount December lean hog futures hold to the cash index.
  • The CME lean hog index is down another 30 cents to $85.21 as of Nov. 27, extending the decline since early November, though it is still $1.36 above the October low.
  • The pork cutout firmed $1.37 on Friday to $90.31 from the previous day’s low, which was the lowest since Feb. 14.
  • December lean hogs are trading within Friday’s range, with initial resistance at $82.80 being challenged, while support lies at the previous session low of $81.75.