TFM Midday Update 05-26-2022

The CME and Total Farm Marketing offices will be closed Monday, May 30, 2022, in observance of Memorial Day

CORN

Jul corn down 6 @ 7.66
Corn is lower following weak export sales numbers of 151,600 MT for 21/22, a marketing-year low, and down 63% from the previous week
Russia’s Defense Ministry has said sea corridors of safe passage will be opened for exports of food to leave Ukraine
DTN’s national corn basis is now 5 cents above the July contract, the strongest basis in ten years and a bullish sign of commercial demand
Hedge funds may be moving money out of commodities and into the stock market

Jul soybeans up 43 @ 17.24
Soybeans ripped higher after being down in the overnight trade on talk of higher crush and export basis
Net sales of 276,800 MT for 21/22 were down 63% from the previous week and down 48% from the prior 4-week average
China canceled previous purchases of 4 million bushels of old crop, leaving Egypt the largest buyer on the week
July soybeans on the Dalian exchange are trading at the equivalent of $21.70 a bushel, making US soybeans an appealing purchase

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Jul wheat up 2 @ 11.50, Jul KC up 7 @ 12.40, & Jul MNPLS up 10 @ 12.91
Net sales reductions of 2,300 MT for 21/22, a marketing year low, were down noticeably from the previous week and the prior 4-week average
India has announced that they have no immediate plan to lift the wheat export ban according to the commerce minister, but they will continue with deals done directly with other governments
Overnight headlines highlight Interfax reporting that Russia will now allow humanitarian food vessels to be shipped from Ukraine, but many doubt that this will take place

Jun LC down 0.050 @ 132.250 & May FC down 0.200 @ 154.400
Both live and feeder cattle are lower this morning on declining open interest
Net beef sales were 20,000 MT for 2022, down 14% from last week
The packer has been able to buy what they need for the week and doesn’t need to be as aggressive with purchases
Choice cuts down 0.72 and select down 1.29
Cattle slaughter projected at 125K
CME Feeder Cattle Index for 5/24: up 0.18 @ 153.35

Jul hogs up 1.400 @ 109.350 & Jun pork cutout up 0.225 @ 114.225
Hogs are starting the day lower with disappointing cutout numbers showing down 1.17
Net pork sales were 36,700 MT for 2022, up 52% from last week and up 39% from the prior 4-week average
The packer seems light on their hog purchases ahead of Memorial Day and may need to get more aggressive resulting in higher cash
National Direct Afternoon report has cash up 0.04
Hog slaughter projected at 474K
CME Lean Hog Index for 5/25: up 0.84 @ 103.87

Amanda Brill