TFM Midday Update 04-04-2023

CORN

May corn down 6 @ 6.52
After this rain event, the Midwest looks to be drier and warmer (which should help with planting the crop)
Next week, warmer temperatures in the northern plains could cause melting of the snow and potential flooding issues
So far this week there have been no new sales announced to China of US corn
Crude oil is higher again this morning after the recent surprise announcement by OPEC of a cut to production
The US corn crop is said to be 2% planted (with most of that in Texas)

May soybeans down 7 @ 15.15
Brazil’s soybean crop production could be 157 mmt and their March exports were a record 3.3 mmt
There is talk that US crushers may have to import Brazil soybeans to satisfy the higher crush
May soybeans on China’s Dalian exchange lost 9% in March
Argentina (for the third time) is going to offer another soy/peso program to encourage their farmers to sell soybeans

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May Chi wheat up 2 @ 6.95, May KC up 4 @ 8.79, & May MNPLS up 4 @ 8.96
Winter wheat is rated just 28% good to excellent (this is the lowest rating for this time of year since 1989)
Rumors of a few cargoes of wheat coming into the US yesterday may have weighed on the market
The northern plains are experiencing blizzard conditions which will likely delay fieldwork for spring wheat
48% of the US winter wheat crop is said to be in drought (last week was 51%)
Several grain exporters in Russia will reportedly be halting operations

Apr LC up 0.175 @ 168.300 & Apr FC up 0.550 @ 199.500
The higher crude oil prices could impact high beef prices and the economy in general
Feeder cattle should find some support with the winter storm moving through cattle country
Packers may need to pay steady money this week to maintain slaughter pace
Choice cuts up 3.02 and select up 3.46
Cattle slaughter projected at 127K
CME Feeder Cattle Index for 4/3: down 1.66 @ 191.68

Brandon Doherty