TFM Midday Update 4-25-2022

CORN

May corn unchanged @ 7.93
Russia is said to be shelling most if not all of the Ukraine port cities
Crude oil trading lower on increase in China covid cases which may lower their demand for energies
7 day forecast for central Brazil is mostly dry which could stress the safrinha corn
September corn on China’s Dalian Exchange is around the equivalent of $11.54 per bushel

May soybeans down 27 @ 17.89
Talk of lockdowns in Beijing, China are increasing concerns about their import demand of commodities (especially soybeans)
The market anticipates that Brazil will be out of the export market after the start of August which could help demand for US soybeans
Indonesia announced the will allow some palm oil exports which caused soybean oil to back off from highs
May soybeans on China’s Dalian Exchange are around the equivalent of $22.07 per bushel

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May wheat down 11 @ 10.54, May KC down 4 @ 11.39, & May MNPLS up 5 @ 11.65
KC wheat is gaining on Chicago due to dry weather
Another 1-2% decline in condition for the HRW wheat crop is expected
7 day forecast shows chances of rain for the eastern edge of the southern plains
Over the weekend, Montana and North Dakota received another winter storm which increases concern about spring wheat planting
Fighting continues in southern and eastern Ukraine but some winter wheat may be able to be harvested in western areas (though there will still be risk)

Jun LC up 3.700 @ 134.725 & May FC up 3.300 @ 160.575
Cattle on Feed report results: on feed at 102% (100.4% expected), placements at 100% (92.2% expected), marketings at 98% (98.2% expected)
On feed number is the highest since 1996
Feedlots may hold out for higher cash (strong slaughter pace and corn prices are lower)
Choice cuts down 2.26 and select down 0.96
Cattle slaughter projected at 122K
CME Feeder Cattle Index for 4/22: up 1.31 @ 155.21

Brandon Doherty