TFM Midday Update 3-23-2023

CORN

May corn up 1 @ 6.34
Private exporters reported sales of 123,000 mt of corn for delivery to China during the 22/23 marketing year
USDA reported an increase of 121.9 mb of corn export sales for 22/23 and an increase of 3.7 mb for 23/24
The Fed issued a rate increase of 25 basis points yesterday afternoon
Matif corn futures in Europe are sliding lower with farmers selling large amounts
Snow cover could delay planting in the northern Corn Belt

May soybeans down 20 @ 14.28
USDA reported an increase of 5.6 mb of soybean export sales for 22/23 and an increase of 7.3 mb for 23/24
Chinese May soybeans on the Dalian exchange hit a new contract low, around the equivalent of $16.31 per bushel
Drops in canola oil and palm oil are weighing on soybean oil
The recent drop in soybean meal, despite a lower Argentina crop, may indicate lower meal demand overall
This morning, November soybean filled the chart gap from July 25^th

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May Chi wheat up 2 @ 6.66, May KC up 14 @ 8.25, & May MNPLS up 5 @ 8.39
USDA reported an increase of 4.6 mb of wheat export sales for 22/23 and an increase of 0.5 mb for 23/24
There are rumors that the president of China agreed to buy wheat from Russia during their recent meeting
With French wheat prices sharply lower, there is talk that China may be trying to buy from them for their reserves

Apr LC down 0.275 @ 162.025 & Apr FC up 0.125 @ 194.500
Cash cattle traded $1 lower in the south, but in the north trade was steady to $1 higher
The gap above the market for April live cattle could still be filled if the market rallies
Feeder cattle are mostly higher at midday, as corn prices remain under pressure
Boxed beef is still struggling as demand remains a concern
Choice cuts up 1.38 and select down 1.73
Cattle slaughter projected at 125K
CME Feeder Cattle Index for 3/22: down 0.09 @ 187.69

Apr hogs up 0.200 @ 76.275 & Apr pork cutout down 0.675 @ 81.750
Weakness of cutouts are unsupportive to hog futures
Slaughter pace is steady, leaving enough pork available to the market
Hog futures are very oversold – if a bottom is found this could trigger short covering
National Direct Afternoon report declined 0.38
Hog slaughter projected at 482K
CME Lean Hog Index for 3/23: down 0.84 @ 77.83

Brandon Doherty