TFM Midday Update 09-15-2022

Provided by Stewart-Peterson Inc.

CORN

Dec corn down 1 @ 6.81
Corn is trading slightly lower today despite the Biden administration reached a deal for a tentative agreement to avoid the rail strike on Friday
Trade was higher in the premarket and beginning of the day, but started to slip as the export sales data for the past four weeks is getting digested
The USDA reported an increase of 23.0 mb of corn export sales for 22/23, and last week’s export shipments totaled 16.8 mb
Corn export commitments now total 18 mb for 22/23 and are down 50% from a year ago

Nov soybeans up 4 @ 14.58
Soybeans were trading higher to start the day, but began to slip after wheat began to sell off
Net export sales came in higher than trade expectations for 22/23 at 5.755 million tonnes, but there are concerns that business will slow down with US beans now the most expensive
The USDA reported an increase of 31.0 mb of soybean export sales for 22/23 and an increase of 1.1 mb for 23/24
Last week’s export shipments totaled 13.8 mb and export commitments now total 16 mb for 22/23 and are up 13% from a year ago

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Dec wheat down 16 @ 8.57, Dec KC down 15 @ 9.32, & Dec MNPLS down 6 @ 9.33
Wheat is leading the way lower for the grain complex today as export sales revealed nothing exciting and both the equity and commodity markets are seeing some selling
Wheat supplies remain tight both for the US and the world, but the US is priced at a premium
Drought in the southwestern US plains, Europe, Argentina, and war in Ukraine will keep wheat supplies small
The USDA reported an increase of 8.0 mb of wheat export sales for 22/23, and last week’s export shipments totaled 24.9 mb

Oct LC up 1.050 @ 145.400 & Sep FC down 0.525 @ 179.450
Live cattle are higher this morning, while feeders are lower as grains move higher
Cash business was quiet yesterday with some trade at a dollar higher in Nebraska, but the volume was very light, and asking prices in the South are between 143 and 144
The Biden administration indicated that a deal was reached with the railroad, avoiding a strike
Net export sales for beef were 15,100 mt for 2022 and 900 mt for 2023
Choice cuts down 3.19 and select down 3.47
Cattle slaughter projected at 127K
CME Feeder Cattle Index for 9/14: down 0.09 @ 179.97

Oct hogs up 1.650 @ 96.350 & Oct pork cutout up 1.575 @ 104.975
Hogs are moving higher again today with a gain in the cutout of 2.11 with bellies leading the way gaining 6.02
Net sales for pork were 25,100 mt for 2022, and net exports of 23,900 mt were primarily to Mexico, Japan, and China
While cash has been trending lower to meet futures, futures have started trending higher with the cutout finally showing signs of life
National Direct Afternoon report fell 1.15
Hog slaughter projected at 481K
CME Lean Hog Index for 9/15: down 0.09 @ 97.58

Amanda Brill