TFM Midday Update 01-14-2022

The CME and Total Farm Marketing offices will be closed Monday, January 17, 2022 in observance of Martin Luther King Jr.

CORN

  • Mar corn up 1 @ 5.88
  • The Rosario Exchange lowered Argentina’s corn crop to 48 mmt (from 56mmt)
  • The Buenos Aires Grain Exchange rated the Argentina corn crop at only 23% good to excellent (vs 40% last week)
  • Rains are expected to start in Argentina and southern Brazil this weekend but longer term dryness is expected to return
  • Private exporters reported 100,422 mt of corn for delivery to Mexico during the 21/22 marketing year

SOYBEANS

  • Mar soybeans down 9 @ 13.68
  • The Rosario Exchange lowered Argentina’s soybean crop to 40 mmt (from 45 mmt)
  • The Buenos Aires Grain Exchange rated the Argentina soybean crop at only 31% good to excellent (vs 48% last week)
  • Private exporters reported 100,000 mt of soybean meal for delivery to Spain during the 22/23 marketing year
  • Argentina’s soy crush capacity is reported to be at 50% due to the Parana River having low water levels

WHEAT

  • Mar wheat down 8 @ 7.39, Mar KC down 14 @ 7.46, Mar MNPLS down 9 @ 8.86
  • A snow storm is moving across the central US over the next few days
  • Paris milling wheat futures are again lower, leaving multiple gaps on the charts
  • The international grains council decreased world wheat production by 4 mmt to 781 mmt
  • Results of the Iraq tender were disappointing as no wheat was sourced from the US (all sourced from Australia)

CATTLE

  • Feb LC up 1.000 @ 138.000 & Mar FC down 0.375 @ 166.350
  • The market may see short covering ahead of a long weekend
  • Chart gaps remain above current levels and may need to be filled
  • Support should come from higher boxed beef
  • Choice cuts up 2.93 and select up 1.78
  • Cattle slaughter projected at 115K
  • CME Feeder Cattle Index for 1/13: down 0.20 @ 162.01

HOGS

  • Feb hogs up 2.950 @ 80.800 & Feb pork cutout up 2.625 @ 93.150
  • Strong cutout values indicate strong demand
  • Packers may have to bid up to meet higher demand
  • The slower slaughter pace due to covid remains a concern
  • National Direct Afternoon report increased 0.26
  • Hog slaughter projected at 456K
  • CME Lean Hog Index for 1/14: down 0.46 @ 74.60

Author

Brandon Doherty

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