TFM Midday Update 07-05-2022

Provided by Stewart-Peterson Inc.

 

CORN

  • Sep corn down 27 @ 5.93
  • Northwest and north-central Corn Belt received scattered rain over the weekend
  • Heavy rains expected later this week in Ohio and Iowa
  • Brazil’s corn crop is reportedly 31% harvested and its crop production is estimated at 117.2 mmt
  • September corn on China’s Dalian Exchange is around the equivalent of $10.23 per bushel (at the lowest level in 5 months)

SOYBEANS

  • Sep soybeans down 58 @ 13.59
  • Rumors that China canceled US soybean purchases on Friday sent the soybean market sharply lower
  • September soybeans on China’s Dalian Exchange are around the equivalent of $18.80 per bushel (at the lowest level in 4 months)
  • Recession talk is pressuring the soybean complex
  • Indonesia increased export quotas of palm oil, leading to lower prices and weighing on soybean oil

 

Like what you’re reading?

Sign up for our other free daily TFM Market Updates and stay in the know!

 

WHEAT

  • Sep wheat down 26 @ 8.20, Sep KC down 35 @ 8.78, & Sep MNPLS down 35 @ 9.13
  • GASC in Egypt is negotiating directly with firms for wheat purchases for delivery in Sep/Oct (this will bypass the usual tender process)
  • Recent rains have benefitted the western Canadian prairies
  • The Ukraine war continues with reports that Russia has captured another city in eastern Ukraine, but prices are near pre-war levels
  • Russian wheat production is still estimated (by the USDA) at a record high 81.0 mmt

CATTLE

  • Aug LC down 1.025 @ 133.575 & Aug FC down 0.850 @ 173.650
  • August live cattle are at a discount to cash
  • Declining boxed beef prices reflect the impact of inflation
  • Packers have some cattle purchased ahead for the next couple weeks
  • Choice cuts down 0.18 and select down 0.10
  • Cattle slaughter projected at 126K
  • CME Feeder Cattle Index for 7/1: down 0.77 @ 165.67

HOGS

  • Jul hogs up 1.550 @ 111.150 & Jul pork cutout up 0.425 @ 111.175
  • Packers may need to be a little more aggressive this week as hog supplies are not plentiful
  • Slower slaughter pace is a concern as inflation becomes more of an issue for consumers and reduces demand
  • National Direct Afternoon report declined 4.69
  • Hog slaughter projected at 467K
  • CME Lean Hog Index for 7/5: down 0.14 @ 110.70

Author

Brandon Doherty

Sign up to get daily TFM Market Updates straight to your email!

back to TFM Market Updates