TFM Midday Update 10-18-2022

Provided by Stewart-Peterson Inc.

CORN

Dec corn down 5 @ 6.79
Corn is lower as funds exit commodities in favor of equities and low water levels on the Mississippi River impact transportation
Yesterday’s crop progress showed that 45% of corn is harvested compared to the 5-year average of 40% this time of year
The Mississippi River is at its lowest levels since the records began in 1954 and chances of rain are low this week but have better chances for rain next week
China is a potential buyer of US corn while Ukraine and Russia struggle to export

Nov soybeans down 18 @ 13.67
Soybeans are lower this morning as barge traffic on the Mississippi River is causing bottlenecking with shipping, and the area is still not forecast for rain
Yesterday the USDA said that 63% of the soybean crop is harvested compared to the 5-year average of 52% for this time of year
While beans and meal are lower, bean oil is higher despite a sharp drop in crude after tanks of sunflower oil were destroyed in drone attacks in Ukraine
Soybean oil stocks were 1.46 billion pounds at the end of September, less than expected and down 13% from a year ago

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Dec wheat down 14 @ 8.47, Dec KC down 10 @ 9.42, & Dec MNPLS down 7@ 9.48
Wheat is lower today as Russia increases attacks on Ukrainian electrical power and water facilities along with civilian apartments
Grain shipments have continued to leave Ukraine, but Russia is unlikely to renew the grain deal unless sanctions on them are lifted
38% of the winter wheat crop has emerged, down from the 5-year average of 44% for this time of year
In Kansas, where 88% of topsoil moisture is short to very short, only 33% of the crop has emerged

Oct LC up 0.225 @ 148.100 & Oct FC up 0.700 @ 175.450
Both live and feeder cattle are higher with feeders leading the way on lower grain
There is a tighter supply of market-ready cattle forcing packers to bid up at feed lots
Asking prices in the South are between 147 and 148 but not yet established in the North
Choice cuts up 1.16 and select up 2.67
Cattle slaughter projected at 127K
CME Feeder Cattle Index for 10/17: down 1.03 @ 173.08

Dec hogs up 1.400 @ 86.300 & Oct pork cutout UNCH @ 96.350
Hogs are starting the day higher again with support from a rise in the cutout of 1.64
Improved export sales and strong slaughter pace have given traders more confidence to be long hogs
Higher cash is expected today to keep with the usual pattern of better cash on Tuesday’s
National Direct Afternoon report fell 1.56
Hog slaughter projected at 490K
CME Lean Hog Index for 10/18: up 0.26 @ 93.35

Amanda Brill