TFM Midday Update 11-22-2022 - Total Farm Marketing by Stewart-Peterson

Provided by Stewart-Peterson Inc.

CORN

Dec corn down 1 @ 6.59
Corn is trading modestly higher on an otherwise quiet day ahead of the Thanksgiving holiday without much news for the market to react to
Monday’s USDA report of corn processing value in Iowa fell 95 cents last week to 8.85 a bushel due to a drop in ethanol prices
Yesterday’s export inspections weren’t bad, but barge traffic through the Mississippi has favored soybeans, and total inspections were 19.5 mb last week
US corn exports to China have been quiet as Brazil has been their main supplier with prices 11% cheaper than the US

Jan soybeans down 1 @ 14.36
Soybeans were trading about 4 cents higher earlier in the day, but reversed and are now slightly lower along with meal, but bean oil remains higher being supported by crude
Along with higher crude oil, Feb palm oil gained 3.9% earlier today, which has been a strong source of support for bean oil
Low sulfur distillate stocks are down 14% from the previous year, and more bean oil will be needed to stretch diesel supplies, which should keep crush incentives strong
Yesterday’s export inspections report was encouraging with 85.6 mb of beans inspected for export, leaving nearly every US port possible with most beans destined for China

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Dec wheat down 4 @ 7.96, Dec KC down 3 @ 9.31, & Dec MNPLS down 1 @ 9.47
Wheat is lower today as warmer temperatures prevail across the southern US with highs in the 50’s and 60’s from Kansas and Texas to the Atlantic coast
The USDA has reported that 32% of the winter wheat crop has been rated good-to-excellent, the lowest in 20 years, and 87% of the crop emerged
With the US dollar trading near the highest levels in 20 years, export business remains sluggish with a small amount of wheat inspected for export last week
Russia continues to attack Ukraine near their nuclear power plant and many Ukrainians have been left without heat or power as winter arrives

Dec LC up 0.075 @ 153.625 & Jan FC down 0.675 @ 181.950
Live cattle are trading either side of unchanged while feeders are mostly lower with a modest increase in corn
Cash business has not been established yet, but higher boxed beef is supportive
Friday’s Cattle on Feed report is long term bullish and points to tight cattle supplies down the road, which should support prices in deferred contracts
Choice cuts up 0.51 and select up 0.79
Cattle slaughter projected at 129K
CME Feeder Cattle Index for 11/21: down 0.72 @ 174.64

Dec hogs up 0.650 @ 84.450 & Dec pork cutout up 0.425 @ 94.775
Hogs are trading higher this morning with a gain in cash and a drop in the cutout of 1.45
Packers have been buying hogs earlier in the week to make up for the shortened holiday schedule
Hog slaughter has increased and is pulling hogs forward and keeping weights low, which should lead to tighter supplies
National Direct Afternoon report rose 0.35
Hog slaughter projected at 491K
CME Lean Hog Index for 11/22: down 0.80 @ 86.97

Amanda Brill