TFM Midday Update 01-23-2023

CORN

  • Mar corn down 11 @ 6.65
  • Corn is trading lower as funds begin to exit long positions spurred by more rains falling in Argentina and southern Brazil
  • In the US, the southeastern Corn Belt is forecast to have heavy precipitation this week, while the northwestern Corn Belt should be mostly dry
  • Argentina’s corn crop is rated just 5% good-to-excellent, and it is not clear how beneficial the recent rains will be to such a damaged crop
  • Last week, non-commercials were buyers of corn, adding 42,542 contracts to their net long position, bringing it to 192,137 contracts

SOYBEANS

  • Mar soybeans down 24 @ 14.83
  • Soybeans are trading lower alongside corn as Argentinian rain continues to pressure prices
  • March beans have lost 64 cents since last Wednesday when rain first became forecast in Argentina in southern Brazil as funds begin to exit long positions
  • Following the selloff in meal, crush values based off the March futures have declined by 50 cents with the value of crushed beans exceeding uncrushed by 2.97
  • Private exporters reported a sale of 192,000 mt of beans for delivery to unknown destinations for the 22/23 marketing year
  • Non-commercials were buyers of beans last week by 36,594 contracts increasing their position to 168,298 contracts

 

Like what you’re reading?

Sign up for our other free daily TFM Market Updates and stay in the know!

 

WHEAT

  • Mar Chi wheat down 23 @ 7.19, Mar KC down 30 @ 8.18, & Mar MNPLS down 19 @ 8.94
  • Wheat is trading sharply lower this morning as Paris milling wheat futures fell by 3.5 Euros, the lowest levels since March
  • Southwest HRW wheat areas remain mostly dry – the recent precipitation has been in northern and eastern areas
  • Both Russian and Ukraine continue to export wheat at prices significantly cheaper than US offerings
  • Last week, non-commercials bought back 1,955 contracts reducing their net short position to 65,089 contracts

CATTLE

  • Feb LC up 0.250 @ 156.875 & Mar FC up 1.750 @ 182.725
  • Live cattle and feeders are up today with feeders posting the majority of gains as corn prices decline
  • The Cattle on Feed report was relatively neutral with placements and marketings slightly negative, but showing a contraction of the herd
  • Cash traded a dollar lower in the South and 3 dollars lower in the North last week
  • Weekly export sales were good at 17,300 mt last week
  • Choice cuts up 0.21 and select up 0.74
  • Cattle slaughter projected at 127K
  • CME Feeder Cattle Index for 1/20: down 0.84 @ 177.03

HOGS

  • Feb hogs down 0.200 @ 77.625 & Feb pork cutout down 0.775 @ 84.900
  • Hogs are lower this morning but appear to have double bottomed from October’s low last week, and stochastics are showing a buy crossover signal
  • Export sales were strong at 34,100 mt last week, cash was higher as well as the cutout which gained 0.45
  • Funds were sellers last week and reduced their net long position by 12,072 contracts bringing it to 10,663 contracts
  • National Direct Afternoon report rose 0.55
  • Hog slaughter projected at 490K
  • CME Lean Hog Index for 1/23: down 0.63 @ 72.65

Author

Amanda Brill

Sign up to get daily TFM Market Updates straight to your email!

back to TFM Market Updates