TFM Midday Update 07-22-2022

Provided by Stewart-Peterson Inc.

CORN

Sep corn down 1 @ 5.75
Corn has come off its lows earlier this morning and is now trading slightly higher as hot and dry weather concerns come back into focus
The Climate Prediction Center expects drought conditions to expand throughout the central Corn Belt from July through October
The Buenos Aires Grain Exchange reported that two-thirds of Argentina’s corn crop was harvested and only 15% is rated good-to-excellent, while western Europe’s crop is under stress from extreme heat

Sep soybeans up 21 @ 13.38
Soybeans are starting the day higher with traders turning back to the bullish weather forecasts
Thursday’s US Drought Monitor showed class 1 degradation in the Southern Plains and southern Minnesota, and forecasts expecting hot and dry weather throughout August
Crude oil is slightly higher along with September palm oil which is giving soybean oil a boost
Thursday’s export sales showed small, but active interest from China for US soybeans in both seasons

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Sep wheat down 35 @ 7.72, Sep KC down 36 @ 8.26, & Sep MNPLS down 35 @ 8.79
Wheat is down with unconfirmed talk that Ukraine, Russia, and Turkey will sign an agreement today which will allow Ukraine to export what is left of its old crop grain by sea
Russia continues to attack Ukrainian wheat fields and turns toward the direction of port city Odesa
Egypt has purchased another 120,000 mt of Russian wheat as well as Pakistan and Jordan
France’s soft wheat is reportedly 85% harvested compared to 50% one week ago

Aug LC up 1.400 @ 137.150 & Aug FC up 1.825 @ 180.100
Both live and feeder cattle are higher today despite lower boxed beef and lower cash trade
Cash business is mostly wrapped up for the week with averages at 136 in the South, 0.50 cents below last week, and 227 in the North, 2 dollars below last week
The market may be higher in anticipation of today’s Cattle on Feed and Cattle Inventory reports that will be released after the close
Estimates for cattle on feed are 101.1%, placements at 94.7%, and marketings at 102%
Choice cuts down 2.77 and select down 1.72
Cattle slaughter projected at 123K
CME Feeder Cattle Index for 7/21: down 1.75 @ 170.67

Aug hogs up 1.300 @ 117.600 & Aug pork cutout up 1.475 @ 123.600
Hogs are higher with August leading the way again despite lower cash and a slightly lower cutout
Weekly export sales may be providing some support as they were decent, but China was listed as a main buyer again
Slaughter continues to lag and has been revised lower for the week, and Saturday slaughter is estimated at 42,000 head
National Direct Afternoon report down 2.98
Hog slaughter projected at 441K
CME Lean Hog Index for 7/22: up 0.46 @ 116.37

Amanda Brill