TFM Midday Update 08-31-2022

Provided by Stewart-Peterson Inc.

CORN

Sep corn down 11 @ 6.69
Corn is lower this morning, but has shown impressive gains of over 40 cents on the month
Grain prices in general are lower after the UK’s August inflation data was higher than expected
Dr. Cordonnier has called for a drop in the US corn yield by 3 bpa to 170 bpa
The Midwest is forecast to be mostly warm and dry over the next few weeks

Sep soybeans up 6 @ 15.19
Soybeans have risen off their early morning lows and are now positive on the day
Private exporters reported sales of 167,000 mt of soybeans for delivery to China during the 22/23 marketing year
Crude oil is down around a dollar a barrel today, but soybean oil is remaining firm
Monday’s USDA report for last week showed the value of soybean products exceeding the cost of soybeans by 5.82 a bushel in Illinois and 6.05 in Iowa, historically wide margins

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Sep wheat up 3 @ 8.01, Sep KC up 3 @ 9.12, & Sep MNPLS up 3 @ 9.07
Wheat has come off its early lows as well and is now positive on the day
The Ukrainian ag minister said that the ongoing war could drop their winter wheat planted acreage another 20% to 9.4 million acres
The strength of the US dollar has temporarily put US wheat exports at a disadvantage to the world’s less expensive producers
Deliverable stocks in Kansas City total 60.357 mb vs 81.894 mb a year ago

Aug LC up 2.000 @ 144.500 & Sep FC up 0.200 @ 182.375
Front month contracts for both live and feeder cattle are higher while all deferred months are lower as boxed beef falls and grain prices move lower
Cash is expected to be steady for the week with asking prices in the South at 144
Today is the last trading day for August live cattle
Choice cuts down 3.25 and select down 3.07
Cattle slaughter projected at 126K
CME Feeder Cattle Index for 8/30: down 0.16 @ 183.00

Oct hogs down 1.450 @ 92.125 & Oct pork cutout down 1.300 @ 102.400
Hogs are moving lower with a dip in cash and a drop in the cutout of 0.41 as bellies continue to show weakness
Packers may need to be aggressive this week to meet demand needs
There is still a gap to fill for Oct at 89.75
National Direct Afternoon report declined 2.52
Hog slaughter projected at 477K
CME Lean Hog Index for 8/31: down 1.90 @ 109.36

Amanda Brill