TFM Midday Update 11-09-2022

Provided by Stewart-Peterson Inc.

CORN

Dec corn down 7 @ 6.61
Turkey is trying to get an extension on the Ukraine export corridor for 12 months – this may be offering some resistance to the corn market
South American weather conditions should improve, with rains in Argentina and Brazil
Blizzard conditions across the PNW and northern plains will slow movement there
Corn export sales are 53% behind a year ago
Domestic demand from feeders and crushers has helped basis remain historically strong

Jan up 1 @ 14.48
Private exporters reported sales of 264,000 mt of soybeans for delivery to China during the 22/23 marketing year and 198,000 mt to unknown during the same period
China’s producer price index came out lower than expected – this could mean lower inflation but also mean reduced imports of raw materials
About 19 million Chinese citizens are being tested for covid in southern China
CONAB increased their projection of Brazil’s soybean production 1.1 mmt (to 153.5 mmt)

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Dec wheat down 15 @ 8.13, Dec KC down 8 @ 9.38, & Dec MNPLS down 8 @ 9.42
The UN and possibly NATO are pushing for sanctions to be lifted on a key Russian bank – this would allow Russia to increase grain and fertilizer exports
Russia is on pace to meet the USDA’s 42 mmt wheat export goal but some think it could be as much as 44-47 mmt
US exports have been struggling, with prices higher than France, Germany, and Russia
The US Dollar Index yesterday fell to the lowest level in weeks which may ease pressure on wheat

Dec hogs down 0.275 @ 85.300 & Dec pork cutout down 0.525 @ 95.450
Slaughter volume is strong and ahead of last year
Hog weights are below a year ago – hogs are being pulled forward to maintain chain speeds
Cutouts are trending lower which does not provide support
There is a chart gap well below the market on Feb hog futures
National Direct Afternoon report gained 2.45
Hog slaughter projected at 491K
CME Lean Hog Index for 11/9: down 0.60 @ 90.28

Brandon Doherty