TFM Midday Update 12-9-2022

Provided by Stewart-Peterson Inc.

CORN

  • March corn up 5 @ 6.47
  • Financial markets will be looking at PPI data today
  • The Buenos Aires Grain exchange said 18% of the Argentina corn crop is rated good to excellent, with 33% planted
  • Brazil December FOB corn is 8% cheaper than the US, cutting into our exports
  • Total US corn export commitments are down 48% from last year

SOYBEANS

  • January soybeans up 1 @ 14.87
  • Over the last 48 hours Argentina saw some scattered rains but more is needed
  • January soybean meal hit another new contract high at $466.40
  • The Buenos Aires Grain Exchange said 11% of Argentina’s soybean crop is rated good to excellent, with 37% planted
  • Soybean oil has been pressured by spread unwinding after unfriendly biofuel EPA mandates

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WHEAT

  • March Chi wheat down 8 @ 7.38, March KC down 8 @ 8.37, & March MNPLS down 6 @ 9.04
  • The overall pattern of dryness in the US southern plains continues, though there is precipitation on the forecast for next week
  • China reducing covid restrictions may increase their raw material demand, but the possibility of US or global recession in 2023 is a concern
  • Wheat futures remain oversold and due for more of a correction
  • Egypt’s GASC was said to have purchased 260,000 mt of wheat from Russia

CATTLE

  • Feb LC up 1.200 @ 155.125 & Jan FC down 0.125 @ 183.350
  • Limited cash trade has been $1.00 – $2.00 lower
  • Packers may need to be more aggressive today to acquire needed supplies
  • Packer margins are well below last year so slaughter pace may be reduced
  • Choice cuts down 1.68 and select up 0.78
  • Cattle slaughter projected at 117K
  • CME Feeder Cattle Index for 12/8: up 0.21 @ 179.23

HOGS

  • Feb hogs up 0.200 @ 84.900 & Feb pork cutout up 0.525 @ 92.825
  • Hogs were under harsh selling pressure yesterday but are slightly higher at midday today
  • Reductions of 7,900 mt of pork export sales for 2022 were unsupportive
  • Hog futures have had 3 days of liquidation, which may have run its course
  • National Direct Afternoon report declined 3.57
  • Hog slaughter projected at 488K
  • CME Lean Hog Index for 12/9: down 0.31 @ 82.47

Author

Brandon Doherty

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