TFM Midday Update 11-11-2022

Provided by Stewart-Peterson Inc.

CORN

Dec corn up 4 @ 6.57
CPI data yesterday was still high but lower than expected
US corn export commitments are running 54% behind a year ago
Europe’s corn crop could be down by 20 mmt – their imports to date are up 7 mmt from last year
Next week, Mississippi River water levels may get temporary help from tropical storm Nicole
Early conditions are mostly favorable in Brazil right now but may be drier next week
Ukraine corn is said to be 39% harvested (30% slower than last year)

Jan soybeans up 31 @ 14.54
In Brazil, there are protests on their recent presidential election
Argentina’s government could announce another soy peso deal which halted farmer selling (they may wait for a more favorable exchange rate)
China still may need to purchase 2-4 mmt of soybeans for January
November soybean futures expire on Monday
According to the Wall Street Journal, China may begin to ease the Zero-Covid policy restrictions to benefit their economy

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Dec wheat up 10 @ 8.13, Dec KC up 12 @ 9.37, & Dec MNPLS up 12 @ 9.44
US Dollar Index is sharply lower again today
There is a meeting in Geneva today between Russia and Ukraine to discuss an extension of the Black Sea export corridor
Putin will not attend the G20 meeting but could make an announcement regarding the export deal at that time
The Rosario Grain Exchange lowered their projection of Argentina’s wheat crop to 11.8 mmt (vs the USDA’s 15.5 mmt)
Subfreezing temperatures in the western Plains may harm winter wheat crops without snow cover

Dec LC down 0.575 @ 152.500 & Nov FC down 1.475 @ 177.150
Lower corn futures helped feeder cattle rally yesterday
Anticipation for stronger cash has not happened this week with steady trade in the north and south
Strong international demand indicated by positive weekly export sales
Choice cuts down 1.40 and select up 1.61
Cattle slaughter projected at 118K
CME Feeder Cattle Index for 11/10: down 0.79 @ 175.51

Dec hogs down 0.775 @ 84.100 & Dec pork cutout down 0.850 @ 94.650
Poor weekly export sales were unsupportive but China has been purchasing pork on a weekly basis
Hogs are being pulled forward with decreasing weights (down 6.6 pounds from last year)
Higher cutouts were offset by lower cash
National Direct Afternoon report declined 2.47
Hog slaughter projected at 449K
CME Lean Hog Index for 11/11: down 0.50 @ 88.96

Brandon Doherty