TFM Midday Update 03-18-2022

CORN

  • May corn down 16 @ 7.39
  • There may be some profit taking today in case there is a ceasefire over the weekend, though as of now, shelling continues in Ukraine
  • Ukraine farmers may not be able to get crops planted – about 70% of their diesel fuel comes from Russia and Belarus
  • The market is still concerned about as much as 15 mmt of corn that may not get shipped out of Ukraine – of that amount, 6 mmt was going to China
  • President Biden will talk with China’s Xi Jinping about the war in Ukraine

SOYBEANS

  • May soybeans down 14 @ 16.55
  • Looking ahead, soybean oil may need some premium in the market if demand from the biofuel industry increases
  • There is still concern about China’s economy due to the covid outbreaks
  • Some sources suggest that Ukrainian corn acres will be switched to soybeans and sunflowers
  • Soybean export sales of 46.0 mb are the 2nd largest on record for this time period (2nd week of March)

 

Like what you’re reading?

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

 

WHEAT

  • May wheat down 38 @ 10.60, May KC down 32 @ 10.60, May MNPLS down 23 @ 10.56
  • Wheat prices may be overvalued if there is a ceasefire by Russia
  • About 40% of the US southern Plains is forecasted to get an inch of rain next week
  • La Nina may be strengthening, suggesting that the US southern Plains will eventually go back to a warm and dry pattern
  • Volume in the wheat markets this week is at the lowest level in 1-2 months

CATTLE

  • Apr LC up 0.275 @ 139.750 & Apr FC up 1.250 @ 162.350
  • Steady to higher cast was supportive to futures
  • Slaughter is stronger than last year and demand is good
  • Corn futures are in a relatively sideways pattern, which may be supportive to feeder cattle
  • Choice cuts down 1.03 and select up 0.41
  • Cattle slaughter projected at 118K
  • CME Feeder Cattle Index for 3/17: up 1.09 @ 154.23

HOGS

  • Apr hogs down 0.600 @ 99.750 & Apr pork cutout down 0.850 @ 106.200
  • Lower futures yesterday appears to be due to technical selling
  • Export sales were strong at 38,300 mt
  • A double top on some charts indicates resistance
  • National Direct Afternoon report declined 0.91
  • Hog slaughter projected at 476K
  • CME Lean Hog Index for 3/18: up 0.36 @ 100.77

Author

Brandon Doherty

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

back to TFM Market Updates