TFM Midday Update 10-19-2022

Provided by Stewart-Peterson Inc.

CORN

Dec corn down 6 @ 6.75
Corn futures are lower today as prices remain in the same tight trading range
Barge traffic on the Mississippi is causing shipping delays and there are now reports that China is looking to South America to fulfill grain requirements
The Energy Information Administration reported today that US crude oil inventories fell by 1.7 million barrels for the week ending Oct 14 compared to an expected decrease of 1.2 mb
Domestic demand has remained strong thanks to good margins and has helped keep basis firm

Nov soybeans down 9 @ 13.64
Soybeans and meal are lower again today, while bean oil is higher, supported by an increase in crude oil and lower than expected soybean oil inventories
With bean oil now trading at its highest prices in over three months, meal has faltered over concerns that more beans will be crushed increasing supplies of meal
President Biden will address the nation today and authorize a release of up to 15 million barrels of oil from the Strategic Petroleum Reserve with a plan to buy oil back between 67 and 72 dollars a barrel
Crush values based off January futures are up to 17.15 a bushel, 3.38 above the cost of soybeans

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Dec wheat down 12 @ 8.37, Dec KC down 6 @ 9.39, & Dec MNPLS down 3 @ 9.53
Wheat has dipped lower after being higher earlier in the day as rumors float that Russia may be close to agreeing on an extension of the Ukrainian grain deal
Ukraine’s Ag Ministry said 6.2 million acres of winter wheat have been planted so far, down from last year’s 14.8 million acres
Rain is forecast for the Pacific Northwest, the eastern side of the southwestern Plains, and Arkansas, Missouri, and Illinois, with the rest of HRW growing areas extremely dry
38% of the winter wheat crop has emerged, down from the 5-year average of 44% for this time of year

Oct LC up 0.600 @ 149.075 & Oct FC up 0.225 @ 175.050
Live and feeder cattle are higher with another increase in boxed beef and expectations for higher cash this week
Asking prices in the South are between 147 and 148 and are not established in the North
October live cattle have made a new contract high today and feeders are trying to carve out a bottom
Choice cuts up 2.64 and select up 1.67
Cattle slaughter projected at 128K
CME Feeder Cattle Index for 10/18: down 0.81 @ 172.27

Dec hogs up 0.075 @ 86.550 & Oct pork cutout UNCH @ 98.025
Hogs are trading higher thanks to a big jump in cash but a slight decline in cutouts of 0.83
The strong pace of slaughter could point to an increase in export sales
December hogs are nearing contract highs but remain at a discount to cash
National Direct Afternoon report rose 7.61
Hog slaughter projected at 490K
CME Lean Hog Index for 10/19: down 0.16 @ 93.19

Amanda Brill