TFM Midday Update 11-30-2021

CORN

  • Dec corn down 15 @ 5.66
  • Corn inspections totaled 30.2 mb
  • Fed Chairman Powell commented that Covid / the new variant could slow economic activity and increase inflation
  • CFTC report showed the managed funds increased new long positions (especially in corn)
  • Domestic corn basis is strong, which should help support the market

SOYBEANS

  • January soybeans down 16 @ 12.26
  • Soybean inspections totaled 78.7 mb
  • Some dryness is starting to show in Argentina and Southern Brazil
  • Brazil still looking at a record harvest
  • Possible drop in oil demand due to the new Omicron virus strain
  • 90% of Brazil soybeans reported to be planted

WHEAT

  • Dec wheat down 24 @ 7.84, Dec KC down 22 @ 8.32, Dec MNPLS up 8 @ 10.50
  • Wheat inspections totaled 9.2 mb
  • Egypt bought 600,000 mt of wheat from Russia, Romania, and Ukraine
  • Wheat had a strong bearish reaction to the news of the Omicron virus variant and is struggling again today
  • USDA reported 44% of the winter wheat crop is rated good to excellent (2nd lowest since 2010)
  • US southern plains expected to remain dry for the next 2 weeks

CATTLE

  • Dec cattle down 0.775 @ 136.150 & Jan FC down 0.450 @ 165.275
  • The market is likely seeing profit taking due to economic concerns over the Omicron virus strain
  • Packers may need to be more aggressive this week and have limited bargaining power
  • Choice cuts down 2.43 and select down 0.23
  • Cattle slaughter projected at 123K
  • CME Feeder Cattle Index for 11/29: up 3.81 @ 161.29

HOGS

  • Dec hogs up 0.300 @ 72.700 & Dec pork cutouts down 0.050 @ 87.350
  • Packers don’t need to bid up as supplies are sufficient
  • COT report showed funds increased their net long positions
  • National Direct Afternoon report increased 0.02
  • Hog slaughter projected at 484K
  • CME Lean Hog Index for 11/30: down 1.03 @ 70.60

Author

Brandon Doherty

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