TFM Midday Update 11-18-2021

CORN

Dec corn down 1 @ 5.74
USDA reported an increase of 35.6 million bushels of corn export sales
Corn was a follower of soybeans in yesterday’s rally
Ethanol production suggests that the USDA may be 100 mb too low for their corn usage numbers
Ethanol weekly production showed an increase of 21,000 barrels per day
Argentina is becoming drier, but conditions in Brazil are still favorable
There is snow today in parts of the northern Midwest

January soybeans down 2 @ 12.75
USDA reported an increase of 50.8 million bushels of soybean export sales
Yesterday we saw speculative / fund buying in soybeans
There is talk that China is short of soybeans and needs to buy from the US
There is resistance around the $13 level for nearby contracts – trading over that would be supportive to the market
132,000 metric tons of US soybeans were sold to China
30,000 metric tons of US soybean oil were sold to India

Dec wheat up 10 @ 8.32, Dec KC up 5 @ 8.39, Dec MNPLS up 6 @ 10.33
USDA reported an increase of 14.7 million bushels of wheat export sales
Eastern Australia will get more rain – there is already concern about wheat quality in that area due to wet conditions
Egypt bought wheat at $7 per ton higher than their previous purchase
World buyers need wheat but are going hand to mouth buying only what they need
Paris milling wheat futures made new all-time highs today

Dec hogs down 1.075 @ 75.100 & Dec pork cutouts down 1.875 @ 91.350
There is still a small gap on the charts above current levels in the Feb contract – may need to be filled
Cash has not been supportive to futures
Finding hogs has still not been difficult for packers
National Direct Afternoon report declined 0.86
Hog slaughter projected at 485K
CME Lean Hog Index for 11/18: down 0.05 @ 76.28

Brandon Doherty