TFM Midday Update 12-14-2021

CORN

Mar corn up 7-3/4 @ 5.93
Market rebounding and posting a midday technical reversal.
Strength in Soybeans spilling over helping corn.
Market staying focused on South American weather forecast.
Demand remains strong with large purchase of U.S. corn by Mexico last week, and rumors of China interest in U.S. Corn.
December corn futures expire today, adding to the volatility.

Jan soybeans up 21 @ 1265
Strong move in soybean meal prices, breaking out to new near-term highs helping support the soybean market.
Prices are posting technical reversal at midday on buying strength.
Prices are still trending lower overall, with cautious eye being kept on the South American weather forecast.

Mar wheat up 1-1/2 @ 7.90. Mar KC up 2-3/4 @ 8.15, Mar MNPLS down 1/2 @ 10.18
Wheat prices are still in a downtrend overall, but prices are recovering, trying to make the turn higher. Wheat seeing support from other grains on Tuesday.
Market staying focused on Southern plains weather forecasts and the drier trend overall.
Increased global and U.S. carryout keeps selling pressure on the market.
Russian wheat taxed were raised to $91/MT, which should help aid in U.S. wheat export demand.
Global wheat demand stays strong and with recent price break, exports may be looking to step into the market and secure supplies.

Feb LC down 0.475 @ 138.400 & March FC down 0.200 @ 166.275
Live cattle charts posted bullish reversals on Monday trade, signaling a possible seasonal upturn.
Retail values have trended softer, helping pressure the cash market last week.
Cash cattle trade still undeveloped and will likely lead the market direction this week.
Cattle slaughter projected at 121K.
CME Feeder Cattle Index for 12/13 up .65 @ 162.16 and running a discount to the Feeder futures prices.
Cattle attempting to post a seasonal turn, but steady cash market was disappointing and could keep pressure on the market.

Feb hogs down 0.725 @ 80.025 & Feb pork cutout down 1.025 @ 91.375
Hog prices consolidating at the top of last week’s range.
December futures and options expire today.
Cash market is showing signs of life, as prices may be trying to find some seasonal value.
Overall premium of the futures market to cash market is still concerning and may keep selling pressure active in the near-term.
CME Lean Hog Index for 12/14: up .60 @ 71.58.

John Heinberg