TFM Midday Update 07-21-2022

Provided by Stewart-Peterson Inc.

CORN

Sep corn down 10 @ 5.82
Corn is lower this morning as poor net export sales showed an increase of 1.3 mb for 21/22, down 43% from last week and 82% from the previous 4-week average
Sales for 22/23 showed an increase of 22.4 mb, and exports of 43.7 mb were above the 39.9 mb needed each week to achieve the USDA’s export estimate
The entire grain complex is lower as crude oil is lower following Russia supplying gas to Germany today at 40% of capacity
Hot temperatures and drier weather are expected to return to the western and central Corn Belt by early August

Sep soybeans down 27 @ 13.24
Soybeans are lower as a result of lower crude oil, as export sales were poor at 7.5 mb for 21/22, and 9.5 mb for 22/23
Last week’s export shipments of 18.4 mb were below the 29.8 mb needed each week to achieve the USDA’s export estimate, and soybean export shipments now total 1.946 bb in 21/22 and are down 10% from a year ago
December soybean oil is down nearly 30% from its high in June, but crush premiums are 2.78 per bushel in August and 2.46 a bushel in January

Like what you’re reading?

Sep wheat up 1 @ 8.20, Sep KC up 1 @ 8.72, & Sep MNPLS down 4 @ 9.20
Wheat is the only grain higher this morning as Russia attacks Ukrainian wheat fields and turns toward the direction of port city Odesa
Non-commercials have cut their long positions so drastically that influence from outside markets is less of a factor and prices are more likely to reflect the fundamental picture
Net wheat sales for 22/23 reported an increase of 18.8 mb, and last week’s export shipments of 5.2 mb were below the 16.0 mb needed each week to achieve the USDA’s export estimates

Aug LC up 0.225 @ 135.975 & Aug FC up 0.025 @ 177.825
August live cattle are slightly higher, while deferred contracts are down following dressed cash trade in Nebraska yesterday of 227, 2 dollars lower than last week, and asking prices 137-140 in the South
Feeder cattle are benefiting from lower corn and continue their trend up
Net beef sales for 2022 were 23,800 mt and up noticeably from the previous week and up 97% from the prior 4-week average
Choice cuts down 2.04 and select down 1.48
Cattle slaughter projected at 125K
CME Feeder Cattle Index for 7/20: down 0.08 @ 172.42

Aug hogs up 1.075 @ 115.950 & Aug pork cutout up 1.925 @ 122.125
Hogs are higher this morning with August leading the way after another large jump in cash, but a decrease in the pork cutout of 0.75
Cash hogs have gained 23.25 over the past two days as packers have been aggressively purchasing hogs
Net pork sales of 20,600 mt for 2022 were up 13% from the previous week and down 23% from the prior 4-week average
National Direct Afternoon report rose 7.19
Hog slaughter projected at 461K
CME Lean Hog Index for 7/21: up 0.46 @ 116.37

Amanda Brill