TFM Midday Update 03-28-2023

CORN

May corn down 1 @ 6.47
Corn is trading slightly higher this morning with help from good export activity
Private exporters reported sales of another 136,000 mt of corn for delivery to China during the 22/23 marketing year
Friday’s Acreage report may be a catalyst for volatility in corn, and some recent estimates are calling for 92.5 million acres of corn, higher than the average guess of 91
Corn inspections for last week came in at 26.2 mb, putting total inspections at 716 mb which is down 37% from the previous year

May soybeans up 15 @ 14.57
Soybeans are significantly higher again today and may be anticipating fewer bean acres planted in favor of corn
Friday’s acreage report will give better insight into potential production, but now some analysts are expecting just 84.5 million acres of beans planted instead of 87.5
Last week’s export inspections were 32.7 mb bringing total inspections to 1652 mb, up 3% from the previous year
May crude oil has risen nearly 9 dollars a barrel in the past 7 days, which has given support to bean oil and other veg oils

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May Chi wheat up 3 @ 7.01, May KC up 9 @ 8.69, & May MNPLS up 8 @ 8.82
Wheat is trading slightly higher today as weather in the US is delaying spring wheat field work and there is some uncertainty in the Black Sea region
Crop ratings for HRW wheat in the southwestern Plains have fallen with Texas at 18% good to excellent and the poor to very poor rating at 48% due to drought
There is talk that Russia may begin restricting wheat exports to fill their reserves, which would be supportive for futures
Last week’s export inspections for wheat were 14.4 mb bringing total inspections to 613 mb, up 3% from the previous year

Apr LC down 0.125 @ 164.775 & Apr FC down 0.300 @ 197.325
Both live and feeder cattle are lower today, but higher cash is expected to be higher this week which could offer support
Packers purchased 25% of their cattle for deferred delivery but business last week was light
Choice cuts up 0.48 and select up 0.97
Cattle slaughter projected at 127K
CME Feeder Cattle Index for 3/27: up 2.53 @ 191.24

Apr hogs down 0.625 @ 78.000 & Apr pork cutout down 0.850 @ 83.350
Hogs are trading lower with a decline in cash but an increase in the cutouts of 0.17
Estimates show the categories of the Hogs and Pigs report to be slightly higher than a year ago which could pressure prices
National Direct Afternoon report declined 0.74
Hog slaughter projected at 484K
CME Lean Hog Index for 3/28: down 0.42 @ 76.57

Amanda Brill