TFM Midday Update 01-12-2022

CORN

  • Mar corn down 3 @ 5.98
  • Argentina will remain hot and dry until the weekend, when rains are forecasted to begin
  • CONAB lowered their Brazil corn estimate to 112.9 mmt (from 117.2 mmt)
  • South Korea purchased 130,000 tons of corn yesterday
  • EIA data today is likely to show ethanol production above the weekly average needed to meet the USDA’s projection for the 14th week in a row

SOYBEANS

  • March soybeans down 4 @ 13.83
  • Palm oil and canola are near contract highs this morning
  • CONAB lowered their Brazil soybean production estimate to 140.5 mmt, which is still higher than many private estimates
  • The rains and cooler weather coming to South America in the next week may be beneficial to crops there

WHEAT

  • Mar wheat down 3 @ 7.67, Mar KC down 6 @ 7.86, Mar MNPLS down 7 @ 9.21
  • Wheat is trading lower at midday after the recent technical correction upwards
  • Expectations are for winter wheat seedings to increase by 500,000 acres to 34.1 million acres
  • Iraq tender results are expected Thursday (expectations are for 500,000 mt)
  • Russia’s export tax is close to $100 per metric ton

CATTLE

  • Feb LC down 0.725 @ 136.950 & Mar FC down 0.650 @ 165.700
  • Slower slaughter this week is pressuring the market
  • Cattle futures bounced off support levels yesterday which may bring buyers into the market
  • Chart gaps remain above current levels and may need to be filled
  • Choice cuts up 2.18 and select up 2.13
  • Cattle slaughter projected at 116K
  • CME Feeder Cattle Index for 1/11: up 0.26 @ 162.24

HOGS

  • Feb hogs up 1.050 @ 78.900 & Feb pork cutout up 0.450 @ 90.475
  • Hog futures are turning around after three days of liquidation
  • The reduction in slaughter pace is leaving sufficient hogs available to the market
  • National Direct Afternoon report increased 1.10
  • Hog slaughter projected at 458K
  • CME Lean Hog Index for 1/12: up 0.43 @ 75.13

Author

Brandon Doherty

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