TFM Midday Update 04-12-2022

CORN

May corn up 11 @ 7.75
Weekly corn inspections at 55.9 mb with total inspections now at 1.260 bb
2% of the U.S. corn crop is planted (vs 3% average and 4% at this time last year)
Dec corn has again made a new high
The Biden administration may allow a higher ethanol blend in the summer, which is supportive to corn
China has purchased 83 mb of U.S. corn in the past 2 weeks, with rumors that they will purchase 1-2 mmt more
Ukraine’s grain traders’ union said their corn harvest may be only 23.1 mmt (vs 37.6 mmt last year)

May soybeans up 15 @ 16.70
Weekly soybean inspections at 28.2 mb with total inspections now at 1.651 bb
Strong soybean oil market is supportive to soybeans
Higher crude oil is supportive as well, with expectations for more biodiesel demand
Lockdowns in China have impacted U.S. soy exports, but they may be starting to ease some covid restrictions
Inflation data out today is expected to show an increase, which could affect ag markets

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May wheat up 15 @ 10.96, May KC up 16 @ 11.58, May MNPLS up 13 @ 11.55
Weekly wheat inspections at 15.1 mb with total inspections now at 648 mb
Winter wheat conditions up 2% to 32% good to excellent (vs 53% at this time last year)
U.S. spring wheat is 6% planted (vs 5% average and 10% at this time last year)
Ukraine is accusing Russia of using chemicals as they continue their offensive
Egypt is tendering for wheat, but only from European sources
Ukraine’s grain traders’ union is estimating a wheat crop of 18.2 mmt (vs 30.3 mmt last year)

Jun LC up 0.900 @ 135.700 & May FC up 1.500 @ 161.400
Yesterday’s rebound on feeder cattle was a positive sign and could encourage traders to buy into the market
Rising corn prices may put pressure on cattle futures
A large storm across cattle country may hinder movement
Choice cuts up 1.64 and select down 0.04
Cattle slaughter projected at 125K
CME Feeder Cattle Index for 4/11: down 0.34 @ 155.67

Brandon Doherty