TFM Midday Update 09-01-2022

Provided by Stewart-Peterson Inc.

CORN

Sep corn down 11 @ 6.63
Corn is trading lower after trying and failing to rally back from lows in the pre-market
Slow export demand is putting some pressure on corn with Ukrainian offers said to be $45/mt below US offers from the Gulf
Domestically, ethanol production fell by 1.7% last week to 970,000 barrels per day as seasonal maintenance slows production
Weather is forecast to be hot and dry over most of the Corn Belt over the next two weeks

Sep soybeans down 24 @ 14.84
Soybeans are lower this morning as concerns remain over China’s economy where new lockdown measures are being put in place with the latest city shut down being Chengdu
The USDA reported that 396,000 mt of soybeans were sold to unknown destinations for 22/23
The USDA is having technical problems releasing export sales and will not have any export sales reports released until September 15
Crude oil is lower, along with heating oil and palm oil, putting pressure on bean oil

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Sep wheat down 14 @ 7.95, Sep KC down 13 @ 9.11, & Sep MNPLS down 23 @ 8.993
Wheat is lower after rallying impressively yesterday, and remain in their sideways trading pattern that has been in place for the past seven weeks
The higher dollar and general recession fears are keeping wheat from moving higher despite tight global supplies
Ukraine continues to export grains, but so far, only 1 mmt of wheat has left their ports
Concerns remain over Ukraine’s nuclear plant where Russian shelling again shut down power to some reactors and relied on diesel generators to keep them running

Aug LC up 0.425 @ 143.000 & Sep FC up 1.325 @ 183.775
Both live cattle and feeders are higher despite lower boxed beef and lower cash
Cash traded around 141 yesterday, a dollar lower than last week, while northern dressed trade was done at 128, 5 dollars lower than last week
Feeders are higher with lower grains and live cattle are moving slightly higher in sympathy
Choice cuts down 1.45 and select down 1.94
Cattle slaughter projected at 126K
CME Feeder Cattle Index for 8/31: up 0.04 @ 183.04

Oct hogs down 0.600 @ 90.925 & Oct pork cutout down 0.300 @ 101.375
Hogs are lower today following lower cash, but finally some life in the cutout, which rose 1.03
Typically, higher cash has been seen on Tuesday’s and Wednesday’s, but the upcoming holiday has reduced the need for packers to be aggressive
Technically, the gap on the Oct chart at 89.75 likely needs to be filled before hogs move higher
National Direct Afternoon report declined 2.02
Hog slaughter projected at 476K
CME Lean Hog Index for 9/1: down 1.74 @ 107.62

Amanda Brill