TFM Midday Update 3-20-2023

CORN

May corn down 2 @ 6.32
Rains in Argentina and continued concerns about the banking system are weighing on commodity markets
This week China’s president will meet with the presidents of Russia and Brazil and could come up with a regional trade agreement
Despite four days of Chinese corn purchases totaling about 83 mb, corn is weaker this morning
New outlets are reporting that UBS purchased Credit Suisse for $3.2 billion

May soybeans up 1 @ 14.77
Last week there was a drop in Brazil soybean and soybean meal premiums which pressured the markets
May soybeans on China’s Dalian exchange hit a 7 month low to the equivalent of $16.57 per bushel
Continued weakness of crude oil not helping, with the May contract trading around $66 per barrel at midday
The rains in Argentina likely won’t do much besides help to stabilize the crop

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May Chi wheat down 9 @ 7.01, May KC down 6 @ 8.30, & May MNPLS down 7 @ 8.54
India has uncertain weather with too much rain in some areas and not enough in others
Russia has said that the Black Sea corridor deal was extended for 60 days but Ukraine is saying it was 120 days, leading to uncertainty there
Paris milling wheat futures gapped lower due to the extension of the deal
The continued drought conditions in the US southern plains provide bullish support

Apr LC up 0.050 @ 162.375 & Apr FC up 0.400 @ 195.050
Cattle on Feed report results: on feed at 96%, placements at 93%, marketings at 95%
The report was bullish compared with last year, but neutral compared to pre-report estimates
April live cattle still have a chart gap above the market which could be filled
There is concern over cash strength this week
Choice cuts down 0.60 and select up 0.68
Cattle slaughter projected at 126K
CME Feeder Cattle Index for 3/17: down 0.84 @ 187.87

Brandon Doherty