TFM Midday Update 06-14-2022

CORN

Jul corn down 6 @ 7.63
Corn is lower this morning in sympathy with lower wheat following good-to-excellent ratings that were better than expected
The USDA reported sales of 148,000 mt of corn to Mexico
The Crop Progress report showed the national corn condition rating at 72% good-to-excellent vs expectations of 73%
North Dakota still has 10% of its intended acreage unplanted, while 88% of the US corn crop is emerged vs 78% last week

Jul soybeans down 1 @ 17.07
Soybeans and soybean oil are lower despite a jump in crude, while soybean meal is lower
The first national soybean condition score came in at 70% good-to-excellent as expected vs 62% last year
Soybean planting progress was estimated at 88% complete vs 90 expected, and 78% last week, with 70% of the crop emerged
Soybeans remain in an uptrend while meal and oil are in either consolidative phases or downtrends

Like what you’re reading?

Jul wheat down 12 @ 10.60, Jul KC down 13 @ 11.49, & Jul MNPLS down 10 @ 12.12
Wheat is lower this morning following crop progress that showed a good-to-excellent rating of 54% for spring wheat, short of the 63% expected but better than last year’s 37%
Planting progress in the US was estimated at 94% complete vs 91% expected, and 100% last year
Winter wheat harvest was estimated at 10% complete vs 5% last week and an average of 12%
Wheat and crude oil should be good indicators for when inflation concerns have peaked, given the rising interest rate environment

Jun LC up 0.400 @ 134.400 & Aug FC down 0.050 @ 171.250
Live cattle are higher this morning after yesterday’s sell off, while feeder cattle are modestly lower despite lower corn
Cash trade is not yet established but asking prices are between 138 and 140 in the South and above 230 in the North
The Federal Reserve is expected to raise interest rates by 0.75 of a point which may negatively impact demand
Choice cuts down 0.78 and select down 1.44
Cattle slaughter projected at 125K
CME Feeder Cattle Index for 6/13: down 1.58 @ 160.29

Jul hogs up 1.225 @ 107.875 & Jul pork cutout up 1.425 @ 113.375
Hogs are higher this morning after posting gains at yesterday’s close as well thanks to a jump in the cutout of 2.22
Although cash was lower, futures have been following moves in the cutout, and higher cutouts may move packers to be more aggressive in purchases today
The June contract goes off the board today with July taking over as the front month
National Direct Afternoon report has cash down 2.14
Hog slaughter projected at 473K
CME Lean Hog Index for 6/14: up 0.21 @ 107.40

Amanda Brill