TFM Midday Update 11-29-2022

Provided by Stewart-Peterson Inc.

CORN

Dec corn up 1 @ 6.70
Corn is slightly higher now that it looks like congressional action will remove the risk of a strike of which the deadline is December 9
Yesterday’s export inspections were poor for corn at only 11.9 mb putting total inspections for 22/23 down 33% from a year ago
Bullish support comes from ethanol as prices closed at a new contract high of 1.825 a gallon on Friday, increasing corn’s processing value
Friday’s CFTC data showed non-commercials as net sellers reducing their net long position by 6,064 contracts to 170,767 contracts

Jan soybeans up 6 @ 14.63
Soybeans and bean oil continue to move higher today from yesterday’s momentum of OPEC’s discussed production cuts which has given crude a bump higher
Crush incentives are highly profitable for processors with Monday’s USDA report showing an increase in soybean processing value of 13 cents, bringing it to 19.60 last week
A flash sale of 4.0 mb was reported yesterday to unknown destinations, and export inspections yesterday were good at 74.3 mb for last week
CFTC data revealed funds were selling soybeans last week and reduced their net long position by 10,830 contracts lowering it to 82,135 contracts

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Dec wheat up 6 @ 7.62, Dec KC up 4 @ 9.09, & Dec MNPLS up 4 @ 9.55
Wheat is bouncing a bit today after yesterday’s sell-off that saw wheat prices at their lowest level since mid-August
The fundamentals for wheat with such tight world supply are bullish, but non-commercials are driving prices lower with heavy selling
US export sales have suffered from low supplies and a high US dollar, and now Russia is getting more attention for their cheaply priced wheat
CFTC data showed funds adding onto their net short position last week selling an additional 6,622 contracts to increase their net short position to 53,402 contracts

Dec LC up 0.175 @ 152.750 & Jan FC up 0.550 @ 177.425
Live cattle and front month feeders are higher while deferred months are lower as corn gains
Last week’s cash movement was encouraging and futures are at a 3 dollar discount to cash but potentially more if cash continues higher this week
Asking prices in the South are between 156 and 157 which would be 1 to 2 dollars higher than last week, and nothing yet established in the North
CoT data showed funds as net buyers of live cattle last week adding 12,229 contracts to their net long position bringing it to 62,389 contracts
Choice cuts up 2.70 and select down 5.84
Cattle slaughter projected at 128K
CME Feeder Cattle Index for 11/28: up 3.56 @ 177.19

Dec hogs up 0.675 @ 81.275 & Dec pork cutout up 0.025 @ 90.125
Hogs are trading higher today in a reversal of yesterday’s sharp sell-off
The move higher today comes thanks to a rise in cash and move higher in the cutouts of 1.89
Yesterday’s CoT showed funds as net sellers of hogs last week by 1,523 contracts reducing their net long position to 54,277 contracts
National Direct Afternoon report rose 0.27
Hog slaughter projected at 491K
CME Lean Hog Index for 11/29: down 0.93 @ 84.63

Amanda Brill