TFM Midday Update 10-14-2022

Provided by Stewart-Peterson Inc.

CORN

Dec corn down 5 @ 6.93
Corn began higher but has been dragged lower by lower wheat and a jump in the dollar
Futures are on track for a small gain for the week despite the lower ethanol production and low water levels on the Mississippi River that have caused serious barge traffic
The USDA reported an increase of 7.9 mb of corn export sales for 22/23
Last week’s export shipments of 16.6 mb were below the 43.9 mb needed each week to achieve the USDA’s export estimates

Nov soybeans down 8 @ 13.88
Soybeans are lower today while meal is higher but bean oil lower with a sharp move lower in crude oil of 3 dollars
The USDA reported an increase of 26.6 mb of soybean export sales in 22/23
Last week’s export shipments of 32.6 mb were below the 42.1 mb needed each week to achieve the USDA’S export estimate
Private exporters reported 392,000 mt of soybeans for delivery to China during the 22/23 marketing year, 198,000 mt of soybeans to unknown, and 230,000 mt of soybean cake and meal to the Philippines totaling 1.622 mmt in just 3 days

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Dec wheat down 17 @ 8.75, Dec KC down 16 @ 9.67, & Dec MNPLS down 14 @ 9.65
Wheat is lower today despite decent export sales and increased tensions between Russia and Ukraine, but the higher dollar could be pressuring wheat prices
Russia launched missiles at many Ukrainian cities this week targeting civilian infrastructure and these attacks caused the nuclear power plant to lose power once again
The USDA reported an increase of 7.8 mb of wheat export sales for 22/23
Last week’s export shipments of 20.6 mb were above the 13.9 mb needed each week to achieve the USDA’s export estimates

Oct LC up 0.200 @ 146.650 & Oct FC down 1.150 @ 173.600
Live and feeder cattle are lower today despite higher cash trade this week of 1 to 2 dollars
The US Dollar is moving higher again today putting pressure on the cattle market
High inflation may be impacting demand as seen by recent declines in the cutout
Choice cuts down 0.13 and select up 1.60
Cattle slaughter projected at 116K
CME Feeder Cattle Index for 10/13: down 1.01 @ 174.03

Oct hogs up 0.075 @ 93.500 & Oct pork cutout up 0.450 @ 102.900
Hogs are higher today despite a drop in cash and a decline in the cutout of 0.87
The October contract expires today, and December is at a large discount to cash
Slaughter pace has been strong requiring more hogs to be pulled ahead
National Direct Afternoon report fell 1.03
Hog slaughter projected at 482K
CME Lean Hog Index for 10/14: up 0.18 @ 92.67

Amanda Brill