TFM Midday Update 08-17-2022 - Total Farm Marketing by Stewart-Peterson

Provided by Stewart-Peterson Inc.

CORN

Sep corn up 1 @ 6.12
Corn futures opened a few cents higher but have fallen back to around steady as news has been light and trade has been mainly focused on weather
Heavier rains are expected across the southern Plains this weekend, but Kansas will be missed
Monday’s crop rating of 57% good-to-excellent was tied for the lowest rating since 2000
In China, trading in corn has been quiet with the Sep contract down 0.4% at the equivalent of $10.08 a bushel

Sep soybeans up 13 @ 14.68
Soybeans are higher with Sep leading, while meal is unchanged and bean oil lower
Trade is relatively quiet as there isn’t much in the way of new headlines to give the soy complex a direction other than weather and spillover news about China’s weak economy
Crude oil is slightly higher today, but its recent downtrend has been weighing on bean oil
Crush margins have been good which has given support to front month soybeans

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Sep wheat down 21 @ 7.66, Sep KC down 23 @ 8.49, & Sep MNPLS down 21 @ 8.82
Wheat is lower this morning after the Wall Street Journal reported the U.S. Agency for International Development will fund 68 million to buy 150,000 mt of wheat from Ukraine for the U.N.’s World Food Program
Five more ships carrying grain have left Ukraine yesterday and traffic seems to be moving more consistently
The southwestern Plains remain in deep drought but prospects for heavy rain are increased over the next seven days improving winter wheat planting conditions
Spring wheat areas are expected to stay mostly dry west of North Dakota over the next two weeks with more hot temperatures incoming

Aug LC up 0.625 @ 141.925 & Aug FC up 2.100 @ 183.650
Both live and feeder cattle are higher with feeders showing most of the gains as supplies are extremely tight and many producers are having difficulty finding replacements
A packer is bidding 238 in Nebraska, but those bids are being passed, and asking prices are still not established in the North
In the South, asking prices have been bumped up between 143 and 145, but no significant trade has taken place yet and packers are expected to bid higher cash this week
Choice cuts up 0.98 and select down 0.60
Cattle slaughter projected at 126K
CME Feeder Cattle Index for 8/16: up 0.31 @ 179.35

Oct hogs up 0.800 @ 97.375 & Oct pork cutout down 0.225 @ 106.250
Hog futures are lower this morning despite a huge jump in cash after the cutout dropped by 3.76, and futures have been very sensitive to moves in the cutout
Cash is now at around a 32-dollar premium to Oct futures giving futures plenty of room to run higher
The selling over the past two days has seemed technical as futures became very overbought
National Direct Afternoon report rose 13.58
Hog slaughter projected at 474K
CME Lean Hog Index for 8/17: down 0.65 @ 121.06

Amanda Brill