TFM Midday Update 10-17-2022

Provided by Stewart-Peterson Inc.

CORN

Dec corn down 5 @ 6.85
Corn has broken the trend of following wheat and is lower this morning as the 7-dollar level makes for formidable resistance
Corn basis remains the strongest it’s been in over 10 years as domestic demand for corn remains firm even though transport has been an issue
Corn inspections totaled 17.7 mb for the week ending October 13 and total inspections are now at 129 mb down 21% from a year ago
Non-commercials added to their net long position last week by 23,377 contracts increasing it to 267,377 contracts

Nov soybeans up 4 @ 13.88
Soybeans are a bit higher today but near the lowest prices in two months with little speculative buying interest lately
Export inspections for soybeans were a bullish surprise this morning with 69.2 mb inspected for export for the week ending October 13, with total inspections now at 172 mb but still down 23% from the previous year
China has been an active buyer and Nov soybeans on the Dalian exchange closed at contract highs at the equivalent of $21.59 a bushel on Friday
Non-commercials were net sellers of 11,750 contracts last week reducing their net long position to 65,738 contracts

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Dec wheat up 15 @ 8.75, Dec KC up 15 @ 9.67, & Dec MNPLS up 6 @ 9.60
Wheat is higher following more Russian attacks on Ukrainian infrastructure this time with a drone striking tanks of sunflower oil in the port city of Mykolaiv this weekend
Ukraine had been planning to open the port of Mykolaiv to expand shipments of food under a deal brokered by the UN and Turkey
The nuclear power plant in Ukraine remains at risk following these attacks, and both Ukraine and Russia are dealing with delayed harvest due to wet and freezing temperatures
Non-commercials were net buyers last week increasing their net long position by 7,283 contracts to 19,052 contracts

Oct LC up 0.850 @ 147.800 & Oct FC up 0.975 @ 174.775
Both live and feeder cattle are higher today supported by a lower dollar and higher cash averages last week by a dollar in the South and two higher in the North
Export sales have been slower as the high dollar has made beef expensive for import
Funds were net sellers of live cattle last week reducing their net long position by 7,874 contracts to 35,062 contracts
Choice cuts up 0.45 and select up 1.08
Cattle slaughter projected at 126K
CME Feeder Cattle Index for 10/14: up 0.08 @ 174.11

Feb hogs up 2.200 @ 85.625 & Oct pork cutout UNCH @ 93.850
Hogs are moving higher along with the cattle complex supported by lower grain and a drop in the dollar but a decline in the cutout of 1.21
December hogs are at nearly a 3-dollar discount to cash giving Dec room to move higher
Funds were sellers of hogs by 1,803 contracts last week reducing their net long position to 21,024 contracts
National Direct Afternoon report fell 0.50
Hog slaughter projected at 484K
CME Lean Hog Index for 10/17: up 0.42 @ 93.09

Amanda Brill