TFM Midday Update 05-23-2022

CORN

Jul corn up 5 @ 7.84
Corn is off to a quiet start today with prices still holding support after bearish outside markets were hard on many commodities last week
The value of ethanol and distiller’s grains are 2.10 above the cost of corn in Iowa, according to USDA’s Friday report
Cash corn prices are seeing their strongest basis in ten years
Friday’s CFTC data showed non-commercials increasing their net long position to 473,743 contracts

Jul soybeans down 18 @ 16.87
Beans are lower following President Biden’s remarks that the US would intervene militarily if China were to invade Taiwan
Private exporters reported to the USDA export sales of 130,000 metric tons of soybeans for delivery to Egypt during the 21/22 marketing year
Jul soybeans are priced 63 cents above the Aug contract which is a bullish sign of commercial demand
Friday’s CFTC data showed non-commercials increasing their net long position to 183,647 contracts

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Jul wheat up 14 @ 11.82, Jul KC up 17 @ 12.70, & Jul MNPLS up 8 @ 12.87
Wheat is finally having a positive day after three straight days of losses last week as weather concerns, and problems with shipments from Ukraine, Russia, and Europe retake the spotlight
In the US, heavy rain amounts are expected to arrive in the southwestern Plains over the next three days with some already falling in northwestern Kansas
A mix of rain and snow fell in North Dakota and southern Manitoba Friday, adding to planting difficulties
Friday’s CFTC data showed non-commercials increasing their net long position in KC wheat to 38,997 contracts

Jun LC up 0.300 @ 131.875 & May FC down 0.175 @ 153.225
Live cattle are slightly higher while front month feeders struggle to stay green after Friday’s bearish Cattle on Feed report
Both on feed at 102% and placements at 99% were higher than anticipated, and this is the second month in a row that estimates for placements were significantly below the actual
Cash looks disappointing this week with some initial calls for another 1-2 dollars lower
Choice cuts up 0.47 and select down 1.04
Cattle slaughter projected at 124K
CME Feeder Cattle Index for 5/20: down 0.41 @ 153.05

Jul hogs up 0.875 @ 109.875 & Jun pork cutout up 1.425 @ 115.775
Hogs are higher again today, with Friday’s impressive close resulting in an 8.13 weekly gain for the Jun contract
Cash has continued higher along with the cutout which rose 3.65, both very supportive to futures
Slaughter pace has increased, resulting in the packer needing to be aggressive in their search for hogs
National Direct Afternoon report has cash up 2.46
Hog slaughter projected at 475K
CME Lean Hog Index for 5/23: up 0.80 @ 101.17

Amanda Brill