TFM Midday Update 09-21-2022

Provided by Stewart-Peterson Inc.

CORN

Dec corn down 8 @ 6.85
Corn is trading lower this morning ahead of the Fed rate hike announcement, in which they are expected to raise rates by 75 basis points
A delegation from Taiwan signed a letter of intent in Iowa to buy roughly 59 mb of corn between 2023 and 2024
The forecast for the Corn Belt is dry with moderate temperatures over the next two weeks, a favorable outlook for maturing corn and harvest progress
US export sales for corn have been slow with Brazilian beans being offered for much cheaper

Nov soybeans down 12 @ 14.67
Soybeans are moving lower, giving up some of their gains from yesterday
In addition to corn, the delegation from Taiwan also signed a letter of intent to buy 100 mb of soybeans between 2023 and 2024, and the entire deal is valued at 2.6 billion
October bean meal scored new contract highs and is still 63 dollars below the USDA’s cash meal price in Illinois as demand is strong
Chinese purchases of Argentinian and Brazilian soybeans have cut into US exports

Like what you’re reading?

Dec wheat up 4 @ 8.99, Dec KC up 3 @ 9.66, & Dec MNPLS up 4 @ 9.63
Wheat is the only grain contract remaining positive today as tensions between Russia and Ukraine escalate as Russia plans to Annex parts of Ukraine and begins nuclear threats
Putin is expected not to renew the Black Sea export deal allowing Ukraine to export grains
Putin has announced that he is mobilizing Russian reserve troops to fight in Ukraine and has said he will use all means to protect “Russia’s territory” alluding to his willingness to use nuclear weapons
In the US, the concern for KC wheat is that the new HRW wheat crop is being planted in the dust as drought conditions continue to dominate

Oct LC down 0.100 @ 146.200 & Sep FC up 0.200 @ 179.000
Front month live cattle are modestly lower while feeders are higher as grains sell-off
Feedlots are looking for higher cash this week with some trade already occurring in the South between 146 and 147, but no significant business done yet
The Cattle on Feed report is this Friday and average trade guesses are 100% for on feed, 98.5% for placements, and 106% for marketings
Choice cuts down 0.81 and select up 1.34
Cattle slaughter projected at 128K
CME Feeder Cattle Index for 9/20: up 0.28 @ 178.20

Oct hogs down 0.075 @ 95.900 & Oct pork cutout down 0.750 @ 104.025
Hogs are lower this morning with lower grains and nerves ahead of the Fed rate announcement at 1pm despite higher cash and a decrease in the cutout of 0.70
Slaughter pace has improved showing better packer margins and increased demand
Hog weights are 2.1 pounds below last year and packers will need more animals to obtain the same tonnage
National Direct Afternoon report rose 5.01
Hog slaughter projected at 482K
CME Lean Hog Index for 9/21: fell 0.06 @ 98.36

Amanda Brill