TFM Midday Update 12-13-2022

Provided by Stewart-Peterson Inc.

CORN

March corn up 3 @ 6.57
A winter storm is expected to hit the western corn belt and northern Plains over the next 24-72 hours
South America’s 7 day forecast has rains in central and northern Brazil, but the South is dry
China is said to have deactivated its covid monitoring & tracking app, but cases continue to increase
FOMC meeting begins today
Consumer Price Index expected to be 7.3%

January soybeans up 19 @ 14.79
Private exporters reported sales of 140,000 mt of soybeans for delivery to unknown during the 23/34 marketing year
Despite the recent weekend rains, Argentina’s forecast for the next 10 days is hot and dry
Chinese Dalian soybean and soybean meal futures were lower, while palm oil and soybean oil were higher
Based on Jan futures, the combined value of crushed soybeans is $3.29 above that of uncrushed

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March Chi wheat up 7 @ 7.62, March KC up 10 @ 8.72, & March MNPLS up 10 @ 9.26
After the Russian attack on Odessa, the ports operations were suspended, but haver reportedly since been restored
The Black Sea Grain Initiative is in question – Odessa was one of three ports that was supposed to be protected in the deal
Bad weather and slow vessel inspections are keeping Russian exports lower than expected
A lower US Dollar Index at midday may be helping wheat prices

Feb LC up 0.500 @ 156.600 & Jan FC up 0.125 @ 183.775
Cash cattle not expected to trade today
Packers do not have much purchased ahead for this week and may need to be more aggressive
Alternatively, packers may reduce slaughter pace in an effort to improve margins
Boxed beef may proved support to the market as it may have found a bottom
Choice cuts up 8.09 and select up 4.42
Cattle slaughter projected at 124K
CME Feeder Cattle Index for 12/12: up 0.72 @ 179.94

Feb hogs up 1.500 @ 85.200 & Feb pork cutout up 0.650 @ 92.700
Weakness in cash and cutouts did not lend much support to futures
Today’s cash trade expected to be higher
December hog futures expire on Wednesday and February will become the front month
Slaughter pace may decrease through the end of the year
National Direct Afternoon report declined 1.39
Hog slaughter projected at 491K
CME Lean Hog Index for 12/13: down 0.52 @ 81.47

Brandon Doherty