TFM Midday Update 11-21-2022

Provided by Stewart-Peterson Inc.

CORN

Dec corn down 7 @ 6.60
Corn has broken lower today as the US Dollar Index rises, and light holiday trade this week leaves prices vulnerable to increased volatility
Export sales have been a bit of a struggle as Brazil’s prices are currently 11% cheaper than the US for the December month
Thursday’s Grain Transportation Report showed 830 barges unloaded in New Orleans the previous week, a 35% increase from the prior week as river levels rise
Friday’s CFTC data showed non-commercials as sellers of 60,831 contracts reducing their net long position to 176.831 contracts

Jan soybeans up 2 @ 14.30
Soybeans have been trading both sides of unchanged but are currently up 2 cents despite another sharp drop in crude oil
Crude has fallen nearly 5 dollars a barrel today following Saudi Arabia and other OPEC members reporting that they are considering production increases of up to 500,000 barrels
In Brazil, rain is expected in the central region while only light showers are forecast for the southern region and Argentina
Friday’s CFTC data showed non-commercials as sellers of 10,943 contracts reducing their net long position to 92,965 contracts

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Dec wheat down 5 @ 7.98, Dec KC up 1 @ 9.35, & Dec MNPLS down 5 @ 9.46
Wheat is trading lower as the higher dollar puts pressure on grains and non-commercials add to their short positions
Russia heavily attacked eastern Ukraine this weekend where much of their winter wheat crop is grown, and more attacks were targeted near the nuclear power plant
Several shells fell near reactors at Ukraine’s nuclear plant and a radioactive waste storage facility was damaged, but no radiation leaks were detected
Friday’s CFTC data showed funds adding to their net short position by 3,878 contracts to 46,780 contracts short

Dec LC up 0.475 @ 153.550 & Jan FC up 1.925 @ 182.675
Both live cattle and feeder cattle are higher this morning after a bullish Cattle on Feed report and lower grain prices today
On feed numbers were 98% vs 98.3% expected, placements were 94% vs 96.4% expected, and marketed was 101% vs 100.8% expected, the low placements show that the numbers are not out there
Friday’s CoT showed funds as sellers of live cattle reducing their net long position by 12,021 contracts to 50,160 contracts
Choice cuts down 2.23 and select up 1.09
Cattle slaughter projected at 128K
CME Feeder Cattle Index for 11/18: down 0.03 @ 175.36

Dec hogs down 0.500 @ 83.725 & Dec pork cutout down 0.150 @ 94.575
Front month hogs are lower while all deferred contracts are higher thanks to spillover buying from the higher cattle markets
Cash fell on Friday but the cutouts gained 0.81, and slaughter was high last week with a big Saturday kill
Friday’s CoT report showed funds as buyers of hogs by 1,286 contracts increasing their net long position to 55,800 contracts
National Direct Afternoon report fell 1.46
Hog slaughter projected at 491K
CME Lean Hog Index for 11/21: down 0.37 @ 87.77

Amanda Brill