TFM Midday Update 09-22-2022 - Total Farm Marketing by Stewart-Peterson

Provided by Stewart-Peterson Inc.

CORN

Dec corn up 2 @ 6.88
Corn is now slightly higher after dropping on the open after export sales were released and were disappointing
Net sales of 182,300 in corn for 22/23 primarily to Japan, Egypt, and Columbia, and exports of 563,000 mt primarily to Mexico, China, and Japan
The US Dollar Index is continuing to climb and putting pressure on most commodities after the Fed announced another 75-basis point hike yesterday to fight inflation
Both Ukrainian and South American offers of corn are cheaper than the US cutting into export business
Private exporters reported sales of 105,000 mt of corn for delivery to Mexico during the 22/23 marketing year, and sales of 101,600 mt to unknown destinations for 22/23

Nov soybeans down 2 @ 14.59
Soybeans are lower this morning after average net export sales numbers as all the Argentinian soybeans that were dumped on the market cut into US export business
Net soybean sales of 445,400 mt for 22/23 were primarily to Egypt, China, and Mexico, while exports of 522,500 mt were primarily to China, Mexico, and Japan
Soybean prices on the Dalian exchange are up 1.5% to the equivalent of $20.51 a bushel as demand for beans continues its strength in the country as lockdowns begin to lift
Crude oil is higher supporting bean oil while meal and soybeans are lower

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Dec wheat up 6 @ 9.10, Dec KC up 11 @ 9.78, & Dec MNPLS up 6 @ 9.70
Wheat is higher today as tensions escalate between Russia and Ukraine and Russia threatens the use of nuclear weapons and plans to annex parts of Ukraine
It is very unlikely at this point that Putin renews the grain deal allowing Ukraine to export out of the Black Sea
The uncertainties due to the war in Ukraine are poising wheat to break out of its near two-month sideways trading range
Net wheat sales of 183,500 mt for 22/23 were primarily to Indonesia, China, and Columbia, and exports of 678,200 mt were primarily to China, Japan, and Indonesia

Oct LC down 0.575 @ 145.300 & Sep FC up 0.475 @ 178.650
Both live and feeder cattle are lower as the dollar continues higher
Export sales were quiet with net sales of 15,200 mt for 2022 primarily to China, Japan, and South Korea, and exports of 18,600 mt
Tomorrow’s Cattle on Feed report is likely putting some pressure on futures, and lower boxed beef has not been helpful either
Choice cuts down 2.51 and select up 1.09
Cattle slaughter projected at 127K
CME Feeder Cattle Index for 9/21: down 0.10 @ 178.10

Oct hogs up 0.500 @ 94.925 & Oct pork cutout up 0.350 @ 103.725
Hogs are now only modestly higher after dropping hard on the open but now moving higher
The cutouts fell by 4.60 in a bearish move while cash was nearly a dollar higher
Net sales of pork were 29,000 mt for 2022 and were primarily to Mexico, Canada, and Japan, while exports were 18,600 mt
National Direct Afternoon report rose 0.98
Hog slaughter projected at 482K
CME Lean Hog Index for 9/22: fell 0.40 @ 97.96

Amanda Brill