TFM Midday Update 03-27-2023

CORN

May corn down 1 @ 6.42
Corn is trading slightly lower in the front months, but higher for new crop
Private exporters reported sales of 112,800 mt of corn for delivery to unknown destinations during the 22/23 marketing year
The lack of banking news and now new banks in crisis mode is giving traders some relief
The USDA Acreage and Stocks report is on Friday and may show more corn acres planted than soybeans which could pressure prices
Friday’s CFTC report showed funds buying back 12,238 contracts of corn reducing their net short position to 41,896 contracts

May soybeans up 9 @ 14.37
Soybean prices are recovering a bit today after being in extremely oversold territory
Friday’s report may show fewer soybean acres planted than corn, which could be positive
Nov beans managed to fill their chart gap, but the May and July contracts have not
Bean meal is still trading lower, likely due to spreading ASF in China and lower feed demand, but bean oil is recovering slightly along with other veg oils
Friday’s CFTC report showed funds selling 16,875 more contracts of soybeans decreasing their net long position to 110,786 contracts

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May Chi wheat up 7 @ 6.95, May KC up 12 @ 8.60, & May MNPLS up 16 @ 8.74
Wheat is trading higher this morning following more tensions with Russia and Ukraine
Last night, news broke that Russia announced that they are placing tactical nuclear weapons in Belarus, the first time since 1990 that they placed weapons outside of Russia
US HRW wheat is dealing with drought and likely falling crop ratings, which will be released this evening
Paris milling wheat futures gained 41 cents per bushel on Friday, reversing the lower trend and supporting US wheat futures
Friday’s CFTC report showed funds selling 8,757 contracts of wheat increasing their net short position to 86,500 contracts

Apr LC up 1.675 @ 164.675 & Apr FC up 3.025 @ 197.825
Both live and feeder cattle are trading higher this morning despite lower boxed beef and mixed cash
Cattle in the South traded a dollar lower last week while Northern cattle were 1 to 2 dollars higher
Funds were sellers of live cattle last week by 28,816 contracts reducing their net long position to 63,749 contracts
Choice cuts down 2.90 and select down 0.14
Cattle slaughter projected at 125K
CME Feeder Cattle Index for 3/24: up 0.14 @ 187.85

Apr hogs up 2.100 @ 79.275 & Apr pork cutout up 1.575 @ 84.675
Hogs are finally bouncing back after two weeks of sharp selloffs and look like they are posting a technical reversal
While cash slipped slightly, cutouts gained by 0.75 supporting futures
Friday’s CoT showed funds tacking on more to their net short position in hogs selling 18,711 contracts to increase their net short position to 16,575 contracts, a historically large short position
National Direct Afternoon report declined 0.13
Hog slaughter projected at 480K
CME Lean Hog Index for 3/27: down 0.40 @ 76.99

Amanda Brill