TFM Midday Update 11-04-2022

Provided by Stewart-Peterson Inc.

CORN

Dec corn up 1 @ 6.80
Corn is trading only slightly higher this morning after finding support at the 6.80 level and remaining steadily in its 20-cent range
Weekly export sales were poor and only increased by only 14.7 mb vs the 35 mb needed weekly to meet the USDA’s projection
Total commitments of 406.3 mb are down 53% from a year ago and account for only 18.8% of the USDA’s current export projection
China has approved over 100 facilities in Brazil for exporting corn

Nov soybeans up 22 @ 14.49
The entire soy complex is again making a strong move higher as both meal and bean oil post 1% gains, and soybeans up around 50 cents on the week
Board crush spreads are at contract highs and also the highest levels on record which is significantly driving soybeans higher
Crude oil has broken above 90 dollars a barrel and is also offering strength the bean market
Weekly export sales were decent, but the concern is that China will only buy what is completely necessary from the US

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Dec wheat up 4 @ 8.45, Dec KC up 7 @ 9.49, & Dec MNPLS up 11 @ 9.54
Wheat is trading higher but has been extremely volatile as the situation with Ukraine’s grain exports is very much up in the air
Australian wheat has been severely downgraded after extensive rains leave the crop waterlogged and potentially only feed quality
With Australia, production issues in Argentina, and poor conditions in the US Southern Plains, wheat supplies will remain tight globally
The deadline for Russia to extend the Ukraine grain deal is on November 18

Dec LC up 0.025 @ 151.975 & Nov FC up 0.700 @ 178.700
Live cattle are trading unchanged to slightly higher while feeders are higher with corn slipping
Cash in the South traded steady with last week while Northern deals were done around 2 dollars higher, but not enough to meet trades expectations
Weights are starting to increase which may slow the pace of slaughter
Choice cuts up 1.71 and select down 0.10
Cattle slaughter projected at 117K
CME Feeder Cattle Index for 11/3: up 0.34 @ 177.63

Dec hogs down 0.425 @ 82.900 & Dec pork cutout down 0.375 @ 93.625
Hog futures are lower this morning with lower cash but a minor gain in the cutout of 0.13
Hog weights are currently 5.6 pounds below this time of year usually as hogs get pulled forward to meet packer needs
Expert sales of 47,900 mt were strong last week and China was the second largest buyer
National Direct Afternoon report down 3.36
Hog slaughter projected at 486K
CME Lean Hog Index for 11/4: down 0.95 @ 92.34

Amanda Brill