TFM Midday Update 05-24-2022

CORN

Jul corn down 13 @ 7.73
The USDA has said that about 72% of the US corn crop is planted, above the average trade guess but still below last year’s 89%
The biggest planting delays are in North Dakota with conditions still wet and only 20% of the crop planted
Central Brazil has no rain in the 7-day forecast and their crop continues to suffer
Corn exports are down 13% from last year, but that does not include about 226 mb of corn that the consensus shows higher than inspections

Jul soybeans down 10 @ 16.77
The USDA has said that 50% of the US soybean crop is planted, down from 73% last year
Both soybean meal and oil are slightly higher today with crush premium now at 2.90, still an incentive for processors to buy more soybeans
There was an active China soybean meal trade yesterday of 540,000 tons
Chinese soybean demand remains bullish with July beans closing on the Dalian exchange at the equivalent of $21.94 a bushel

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Jul wheat down 20 @ 11.70, Jul KC down 25 @ 12.51, & Jul MNPLS down 11 @ 12.88
Wheat was much higher in the overnight but fell alongside corn and soybeans as the stock market is taking another tumble today
The USDA said yesterday that 28% of the winter wheat crop was rated good to excellent, the lowest rating since the drought of 1989
According to the USDA, 49% of the spring wheat crop has been planted, down from the 5-year average of 83% for this time of year
Minnesota is 11% planted and North Dakota 27% planted, states that account for two-thirds of US spring wheat production

Jun LC down 0.100 @ 132.675 & May FC up 0.800 @ 154.250
Cattle have rebounded yesterday and into today after being oversold into the Cattle on Feed report
Cash is averaging about 2 dollars lower than last week, with major packers bidding 135 in Kansas, with the expectation that cash will come down further in the following weeks
The Cold Storage report showed beef supplies up 18% from a year ago
Choice cuts up 2.11 and select up 1.21
Cattle slaughter projected at 125K
CME Feeder Cattle Index for 5/23: down 0.33 @ 152.72

Jul hogs down 2.525 @ 108.325 & Jun pork cutout down 1.550 @ 114.350
Hogs extended last week’s gains with June closing above the 50% retracement level which provides technical strength, but hogs are lower this morning with cash significantly lower
The next level of resistance on the July chart is 3 dollars higher, but will need to be supported by strengthening cash
Pork in cold storage was 16% higher than a year ago during the month of April, and pork belly stocks were 67% higher than a year ago
National Direct Afternoon report has cash down 6.72
Hog slaughter projected at 476K
CME Lean Hog Index for 5/24: up 0.91 @ 102.08

Amanda Brill