TFM Midday Update 05-06-2022

CORN

Jul corn down 8 @ 7.90
Corn trading lower partially due to bearish outside influences with U.S. stocks continuing their sharp decline
Anticipation that US planting will pick up with warmer temperatures over the next few days is putting pressure on prices
Dryness in South America is hurting Brazil’s second crop corn and only 16% of Argentina’s crop is rated good to excellent
DTN’s National Corn Index closed at 7.85 down from highest price in nine years

Jul soybeans down 8 @ 16.39
USDA reports that the U.S. has already exceeded soybean export estimate by 28mb for 2021-22
Bearish influence coming from a 1.54-cent drop in Jul soybean oil and 1.30 drop in Jul soybean meal
Over half of Argentina’s crop is harvested but only 12% is rated good to excellent
DTN’s National Soybean Index closed at 16.10 down from highest prices in nine years

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Jul wheat up 20 @ 11.27, Jul KC up 10 @ 11.87, & Jul MNPLS up 4 @ 12.14
Yesterday Oklahoma estimated this year’s wheat crop at 57mb which is half of last year’s at 115mb
Continued worries in Ukraine as Russia strategically attacks important supplies making flow of grain challenging
Open interest in May contracts of U.S. wheat has fallen dangerously low making trading difficult
Dryness in France poses a threat to their wheat crop

Jun LC down 0.225 @ 133.550 & May FC down 0.175 @ 160.125
The packer is back in control of the market for now with sufficient supply and no higher cash bids
Live cattle futures are trending lower with light cash activity and a hit to boxed beef
Feeders may find some buyers today with corn futures lower
Choice cuts down 4.65 and select down 1.87
Cattle slaughter projected at 118K
CME Feeder Cattle Index for 5/5: down 0.16 @ 155.59

Jun hogs down 1.625 @ 105.450 & Jun pork cutout down 1.100 @ 112.450
Hog futures showed strength again yesterday and seem to have more upside potential after recent price decline
Cutouts rose 2.44 which gives hope that consumer demand is improving
The packers aggressive purchasing yesterday may have given them sufficient supply for the week and could account for lower cash
National Direct Afternoon report decreased 4.90
Hog slaughter projected at 459K
CME Lean Hog Index for 5/6: down 0.08 @ 100.96

Amanda Brill