TFM Midday Update 11-14-2022

Provided by Stewart-Peterson Inc.

CORN

Dec corn UNCH @ 6.58
December corn is trading slightly higher this morning while deferred months are about a penny lower
Trade is quiet due to a delay in this morning’s export inspections report
Export sales remain the biggest concern right now, but strong demand for feed and ethanol have kept prices supported
Crop conditions in Brazil got off to a good start but now face drier conditions in both southern Brazil and Argentina which has already been dealing with drought

Jan soybeans down 13@ 14.37
Soybeans are trading lower but have recovered a bit from pre-market lows where prices were down as much as 12 cents
China is reportedly making more lenient changed to the zero-Covid policies but at the same time is dealing with higher infection rates in Beijing and other major cities
Today Presidents Biden and Xi Jinping will meet at the G20 meeting, but its not clear what they will discuss
Crush margins remain historically high, but bean oil is being pressured lower by lower crude oil

Like what you’re reading?

Dec wheat up 8 @ 8.22, Dec KC up 16 @ 9.59, & Dec MNPLS up 18 @ 9.63
Wheat is trading higher as this morning’s weather forecast has snow moving into Kansas and the Texas Panhandle and may stress the winter wheat crop which is already in bad shape
Russia is expected to eventually announce a continuation of the Ukrainian grain deal at some point this week, but the war keeps escalating
With the US wheat crop rated poorly, Ukraine’s crop limited due to the war, and Australia’s crop dealing with flooding, global wheat supplies look to remain tight
Argentina’s wheat crop has suffered from drought and has only an 8% good-to-excellent rating

Dec LC UNCH @ 151.525 & Nov FC down 0.150 @ 176.800
Dec live cattle are higher while deferred months are trading higher and feeder cattle are trading higher
Cash traded steady last week with averages of 150 in the South and 242 in the North
The drop in boxed beef and the upcoming Cattle on Feed report is keeping traders guessing for now
Choice cuts down 4.33 and select down 1.56
Cattle slaughter projected at 127K
CME Feeder Cattle Index for 11/11: down 0.05 @ 175.46

Dec hogs up 0.500 @ 84.850 & Dec pork cutout up 1.200 @ 96.100
Hog futures are higher this morning following an increase in cash and a jump in the cutout of 1.46
The strength of slaughter pace indicated good end of year demand that will keep the market current and weights down
Cash will likely trade lower today as packers assess their needs
National Direct Afternoon report rose 0.11
Hog slaughter projected at 490K
CME Lean Hog Index for 11/14: down 0.33 @ 88.63

Amanda Brill