TFM Midday Update 05-05-2022

CORN

  • Jul corn unchanged @ 7.94-1/4
  • USDA reported an increase of 30.8 mb of corn export sales for 21/22 and an increase of 29.1 mb for 22/23
  • 7-day forecast for Brazil and Argentina is mostly dry (may stress Brazil’s safrinha corn)
  • September corn on China’s Dalian Exchange is around the equivalent of $11.60 per bushel
  • Next week the Midwest could see a drier/warmer pattern which would help in getting the corn crop planted

SOYBEANS

  • Jul soybeans up 11 @ 16.51
  • USDA reported an increase of 27.0 mb of soybean export sales for 21/22 and an increase of 15.0 mb for 22/23
  • China is back from holiday and they may return to purchasing US soybeans
  • Concern about China’s economy still exists after disappointing PMI data
  • July soybeans on China’s Dalian Exchange are around the equivalent of $21.75 per bushel

Like what you’re reading?

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

 

WHEAT

  • Jul wheat up 21 @ 10.98, Jul KC up 33 @ 11.56, & Jul MNPLS up 14 @ 11.91
  • USDA reported an increase of 4.4 mb of wheat export sales for 21/22 and an increase of 1.6 mb for 22/23
  • Triple-digit temperatures are expected in Texas soon – drought is still a big concern there
  • India’s government reduced its wheat crop production estimate to 105 mmt (from 111.3 mmt)
  • In addition to India, Pakistan and Bangladesh may have lower wheat crops

CATTLE

  • Jun LC down 0.250 @ 134.575 & May FC down 1.775 @ 160.475
  • Relatively high corn prices may keep pressure on cattle
  • Cash has been steady
  • Live cattle futures still have large chart gaps above the market
  • Beef export sales at 14,600 mt (up 28% from previous week)
  • Choice cuts up 0.19 and select up 0.34
  • Cattle slaughter projected at 126K
  • CME Feeder Cattle Index for 5/4: down 0.02 @ 155.75

HOGS

  • Jun hogs up 0.875 @ 105.975 Jun pork cutout down 0.200 @ 111.850
  • Hogs may be correcting from an oversold situation
  • Demand should pick up seasonally over the coming months
  • Porn export sales at 23,800 mt (down 24% from previous week)
  • Packers bought aggressively yesterday
  • National Direct Afternoon report increased 8.34
  • Hog slaughter projected at 481K
  • CME Lean Hog Index for 5/5: down 0.11 @ 101.04

Author

Brandon Doherty

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

back to TFM Market Updates