TFM Midday Update 08-09-2022

Provided by Stewart-Peterson Inc.

CORN

Sep corn up 9 @ 6.17
Corn is higher this morning following USDA crop ratings that were down 3% to 58% good-to-excellent from 61%
DTN’s Digital Yield Tour estimated national corn yields at 167.2 bpa, while the USDA’s estimate last month was 177.0 bpa, and the average trade estimate at 175.9 bpa
Private exporters reported sales of 133,000 mt of corn for delivery to China during the 22/23 marketing year

Sep soybeans up 39 @ 15.02
Soybeans are higher after the USDA lowered crop conditions by 1% to 59% good-to-excellent with Kansas and Kentucky falling the most to 41-42% good-to-excellent
The USDA has reported that 89% of the soy crop is blooming with 61% setting pods, down from the 5-year average of 66% for this time of year
DTN’s Digital Yield Tour estimated national soybean yields at 48.9 bpa, while the USDA’s estimate last month was 51.5 bpa, and the average trade estimate at 51.1 bpa

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Sep wheat down 2 @ 7.78, Sep KC down 3 @ 8.45, & Sep MNPLS up 2 @ 8.83
Wheat was trading higher on the open, but has faded and is now slightly lower
The USDA’s spring wheat ratings fell a surprising 6% to 64% good-to-excellent with 9% of the crop harvested, and 86% of the winter wheat harvest is complete
Two more ships have left Ukrainian ports bringing the total to 12, but most have been carrying corn and sunflower products, not wheat

Aug LC down 0.300 @ 138.050 & Aug FC down 2.175 @ 179.100
Both live and feeder cattle are lower as higher corn pressures feeders
Cash asking prices in the South have picked up to 138-140, but significant trade will likely be delayed until tomorrow
Strong slaughter pace should require packers to be more aggressive to stay ahead of demand
Choice cuts up 1.62 and select up 0.19
Cattle slaughter projected at 125K
CME Feeder Cattle Index for 8/8: down 0.12 @ 175.31

Aug hogs down 0.150 @ 121.65 & Aug pork cutout down 0.750 @ 125.425
Hogs are lower this morning following lower cash and a small drop in the cutout of 0.97
The drop in the cattle complex is likely weighing on hogs today
Friday’s Commitment of Traders showed funds as net buyers of 5,675 contracts, increasing their net long position to 45,949 contracts
National Direct Afternoon report declined 1.59
Hog slaughter projected at 467K
CME Lean Hog Index for 8/9: down 0.17 @ 121.92

Amanda Brill