TFM Midday Update 05-18-2022

CORN

Jul corn down 18 @ 7.82
Corn has slipped below 8.00 as the weather shows rain falling from Missouri to Wisconsin, expected to move across the eastern Corn Belt later today
Planting conditions are favorable in the Corn Belt, but North Dakota and Minnesota are still too wet
Brazil’s corn crop is going through pollination with continued dryness into the seven-day forecast
Later today, the US Energy Department will report on last week’s ethanol production, and another active week is expected

Jul soybeans down 12 @ 16.65
The USDA has confirmed the sale of 229,200 tonnes of US soybeans to unknown destinations
July beans are trading about 58 cents higher than the August contract, a bullish sign of the willingness of commercials to pay up for physical soybeans
Higher soybean meal is helping July beans stay green while deferred contracts are lower
July soybeans on the Dalian exchange closed at the equivalent of $21.65, near the highest prices of the year, and a sign that China will be back to buy both old and new crop beans

Like what you’re reading?

Jul wheat down 43 @ 12.35, Jul KC down 48 @ 13.20, & Jul MNPLS down 51 @ 13.42
Wheat is lower thanks to rain falling in Missouri, and moderate to heavy amounts anticipated toward the end of the seven-day forecast for Oklahoma, central Texas, and eastern Kansas
Day one of the Wheat Quality Council’s HRWQ wheat tour has estimated an average yield of 39.5 bushels an acre, down from 59.2 last year
Although weather conditions are still poor, it seems that a bit of rain forecast has driven the market lower today
Despite all three wheats being down in the double digits today, the overall trend is still higher with wheat production struggling domestically and abroad

Jun LC down 1.225 @ 131.775 & May FC down 0.975 @ 156.200
Cash cattle traded two dollars lower than last week which dragged futures lower along with lower corn
Cattle weights are heavier than a year ago and with feed lots not wanting to carry them for long with high feed prices, more cattle will be dumped in the market
Traders are concerned that cash will fall even lower, but the discount of cash to the June contract should provide some support to futures
Choice cuts up 0.17 and select up 2.52
Cattle slaughter projected at 125K
CME Feeder Cattle Index for 5/17: down 0.73 @ 155.27

Jul hogs down 1.800 @ 105.950 & Jun pork cutout down 0.525 @ 110.550
Hog futures worked significantly higher yesterday as cash came out much higher, giving needed momentum
Higher cash shows the strength of demand, and it appears as though the bottom has been hit and futures are headed higher
The packer is finding fewer market-ready hogs to choose from
National Direct Afternoon report has cash up 9.74
Hog slaughter projected at 479K
CME Lean Hog Index for 5/18: down 0.17 @ 99.90

Amanda Brill