TFM Midday Update 12-28-2022

Provided by Stewart-Peterson Inc.

CORN

Mar corn up 4 @ 6.79
Corn is trading higher today and has taken out yesterday’s high, and is currently challenging the 200-day moving average which has acted as resistance since early November
There isn’t much bullish fundamental news to support this rally as corn export commitments are down 48% from a year ago and ethanol prices have slipped
Argentina is still struggling with crop conditions and only has a limited planting window left
Export demand has been slow but there was a flash sale of 5.9 mb to Mexico and 177,500 mt for delivery to Japan

Jan soybeans up 9 @ 14.91
Soybeans are trading higher again today hovering right below 15 dollars which was broken through yesterday temporarily before fading throughout the day
Meal is trading higher while bean oil has fallen significantly in a reversal from yesterday’s trend
Indonesia’s president said he will announce a commodity export ban on Wednesday which may include palm oil, which holds the world’s largest share of the veg oil market
Along with solid exports, crush margins remain very profitable with the value of crushed beans exceeding uncrushed beans by 3.31 a bushel based off March futures

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Mar Chi wheat up 9 @ 7.83, Mar KC up 7 @ 8.86, & Mar MNPLS down 1 @ 9.34
Wheat futures are trading higher with the most gains in Chicago but Minneapolis slightly lower on the day
Australia is beginning their record wheat harvest, but the crop remains waterlogged and much of the wheat will only be suitable for feed
Egypt and Romania have been purchasing wheat from Russia as their falling ruble makes their wheat extremely cheap compared to US
In Ukraine, Russia continues to hit the East with drone and missile strikes while simultaneously saying that they are ready to negotiate peace talks

Feb LC down 0.225 @ 157.650 & Jan FC down 0.700 @ 182.400
Both live and feeder cattle are trading lower as trade is quiet during the holiday week
Trade is looking for steady to higher cash this week following last week’s 1 dollar higher trade, and boxed beef continued to rocket higher increasing packer margins
Feeder cattle are under some pressure thanks to a slightly bearish placement number in last week’s Cattle on Feed
Choice cuts up 8.09 and select up 0.17
Cattle slaughter projected at 127K
CME Feeder Cattle Index for 12/27: down 0.64 @ 175.73

Feb hogs down 0.475 @ 91.025 & Feb pork cutout UNCH @ 97.775
Hogs are trading lower this morning under some technical pressure that has given Feb hogs difficulty in staying above the 92-dollar level
Cash moved lower as well as the cutouts which slipped by 1.14, and futures trade 13 dollars above the cash index
The Commitment of Traders report showed funds selling 2,920 contracts reducing their net long position to 34,762 contracts
National Direct Afternoon report 5-day average @ 78.43
Hog slaughter projected at 491K
CME Lean Hog Index for 12/28: down 0.14 @ 78.60

Amanda Brill