TFM Midday Update 12-28-2021

CORN

  • Mar corn down 3 @ 6.12
  • Corn inspections totaled 28.3 mb on yesterday’s report
  • Matif corn futures are at two-week highs
  • Yesterday March corn had its highest close in 6 months
  • Dry weather in South America remains a concern – first week of the forecast brings some showers but returns to warm and dry the second week
  • Snow today in the US northern Plains and northern Midwest

SOYBEANS

  • Jan soybeans up 2 @ 13.65
  • Soybean inspections totaled 58 mb on yesterday’s report
  • Soybeans are trading increased money flow due to South American weather concerns
  • Matif rapeseed made all-time highs
  • Flooding in the Malaysian region has created a shortage of palm oil, causing a rally
  • Export sales remain 24% behind last year

WHEAT

  • Mar wheat down 17 @ 7.87, Mar KC down 18 @ 8.29, Mar MNPLS down 15 @ 10.09
  • Wheat inspections totaled 10 mb on yesterday’s report
  • Yesterday wheat dropped on talk that Iraq is delaying their tender (some thought they might source from the US)
  • Russia is getting snow – may help insulate the crop and provide moisture in the spring
  • Wheat charts posted bearish reversals yesterday with follow-through selling at midday today

CATTLE

  • Feb LC down 0.125 @ 139.150 Mar FC up 1.575 @ 164.850
  • Cash this week will need to be steady with last week to support futures
  • Packers need cattle to meet demand
  • Stronger demand is indicated by higher boxed beef prices
  • Choice cuts up 1.54 and select up 2.23
  • Cattle slaughter projected at 120K
  • CME Feeder Cattle Index for 12/27: down 1.14 @ 159.14

HOGS

  • Feb hogs down 0.475 @ 83.175 & Feb pork cutout down 0.425 @ 92.925
  • Packers may be less aggressive this week due to slaughter not being at full capacity during the holidays
  • June through August futures made new contract highs yesterday
  • Tighter supplies are expected into next year
  • National Direct Afternoon report declined 0.78
  • Hog slaughter projected at 479K
  • CME Lean Hog Index for 12/28: down 0.51 @ 71.16

Author

Brandon Doherty

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