TFM Midday Update 01-09-2023

Provided by Stewart-Peterson Inc.

CORN

  • Mar corn up 1 @ 6.54
  • Corn is trading moderately higher as traders are quiet ahead of an uncertain WASDE report on Thursday
  • Argentinian weather is still hot and dry, but rain chances have improved with rain forecast on Wednesday and Thursday this week
  • The prices of Chinese corn on the Dalian exchange are climbing and are now at the equivalent of $10.82 a bushel which could spur buying
  • Friday’s CFTC report showed funds as buyers of corn increasing their net long position to 267,532 contracts

SOYBEANS

  • Mar soybeans up 3 @ 14.95
  • Soybeans are trading higher following political unrest in Brazil where supporters of Bolsonaro attacked government buildings in protest of the new president
  • Crude oil is over 2 dollars a barrel higher this morning which is supporting bean oil
  • While Argentina struggles with dryness, Brazil’s weather has been near perfect and a record crop is expected in early January
  • Friday’s CFTC report showed non-commercials as buyers of 15,120 contracts increasing their net long position to 148,639 contracts

 

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WHEAT

  • Mar Chi wheat up 12 @ 7.55Mar KC up 7 @ 8.39, & Mar MNPLS up 9 @ 9.10
  • Wheat is trading higher this morning and is surprisingly performing the best of all the grains as world supply remains a concern
  • Demand for US wheat has been very poor with cheap Russian wheat getting all the business out of the Black Sea
  • Ukraine is also shipping wheat out of the Black Sea and so far has shipped 23.6 mb of grain in 22/23 with 8.6 mmt being wheat
  • Friday’s CFTC report showed non-commercials as buyers of Chicago wheat last week reducing their net short position to 32,291 contracts

CATTLE

  • Feb LC up 1.275 @ 158.075 & Jan FC up 0.825 @ 183.525
  • Both live and feeder cattle are higher this morning with live cattle getting help from better cash last week and another increase in boxed beef
  • Last week cash traded at 157 in the South which was steady with the previous week, but traded at 252 in the North, a dollar better
  • Friday’s Commitment of Traders showed funds as buyers of 3,380 contracts increasing their net long position to 84,869 contracts
  • Choice cuts up 1.36 and select up 2.39
  • Cattle slaughter projected at 123K
  • CME Feeder Cattle Index for 1/6: up 0.15 @ 180.46

HOGS

  • Feb hogs down 0.050 @ 80.850 & Feb pork cutout down 0.175 @ 88.550
  • Hogs are trading higher to start the week with slightly higher cash but a decline in the cutouts of 0.32
  • Hogs are technically oversold which may trigger some short covering by traders
  • Friday’s Commitment of Traders showed funds as sellers of 1,393 contracts last week reducing their net long position to 49,508 contracts
  • National Direct Afternoon report increased 0.08
  • Hog slaughter projected at 476K
  • CME Lean Hog Index for 1/9: down 0.77 @ 77.49

Author

Amanda Brill

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