TFM Midday Update 09-26-2022

Provided by Stewart-Peterson Inc.

CORN

Dec corn down 6 @ 6.70
Harvest activity is picking up and adding to pressure in the market
The US Dollar index posted a new 20-year high
Financial market stress is also weighing on commodities
In the southeastern US, some flooding is expected when Hurricane Ivan makes landfall
So far for this marketing year, Ukraine has shipped 4.134 mmt of corn
Corn prices in China remain expensive, around the equivalent of $9.95 per bushel

Nov soybeans down 8 @ 14.18
December soybean oil was lower Friday after November crude oil hit the lowest price in seven months
Rumors of a military coup against Chinese President Xi Jinping have so far not been confirmed
Palm oil has declined almost 9% in three days due to demand concerns and lower crude oil
Argentina’s government recently offered a more favorable exchange rate to farmers there selling soybeans; from Sep 5-22 they have sold about 9 mmt (with about half going to export)
China is said to be purchasing Argentina soybeans, with South American prices cheaper than the US

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Dec wheat down 11 @ 8.70, Dec KC down 14 @ 9.37, & Dec MNPLS down 6 @ 9.43
Russian shelling in Ukraine continued over the weekend in areas where referendums are being held
Russian wheat is currently the world’s cheapest, but there is a question as to if they can export it
Russia is calling up 300,000 reserve troops for the war
The US southern plains continue to be dry and warm which should offer support to the market
September 30 will feature the Grain Stocks and Small Grains summary reports

Oct LC up 0.800 @ 145.050 & Sep FC up 0.150 @ 178.275
Placements were higher than anticipated on Friday’s Cattle on Feed report with a slight overall bearish tone to the report
A head and shoulders chart formation in feeder cattle points to the downside
Cash was $1 higher in both the north and south
Boxed beef has been trending lower but closed mixed on Friday
Choice cuts up 0.23 and select down 2.80
Cattle slaughter projected at 126K
CME Feeder Cattle Index for 9/23: up 0.40 @ 180.15

Brandon Doherty