TFM Midday Update 6-1-2022

CORN

Jul corn down 32 @ 7.22
Corn is taking another beating today as it appears funds are liquidating positions following the Planting report and possibilities of Ukrainian exports
The USDA said that 86% of the US corn crop is planted vs 94% last year
Lack of a weather concern at this point for corn could be triggering the funds to sell
Last week’s CFTC showed that the funds were sellers of 49,000 contracts of corn decreasing their net long position to 248,000 contracts

Jul soybeans down 5 @ 16.79
Soybeans are only modestly lower as corn and wheat fall due to fund selling, showing the fundamental strength of soybeans and high demand
Higher crude is giving a boost to soybean oil, while meal is lower
The USDA said that 66% of the crop is planted compared to 83% last year, but only 39% has emerged, down from the five-year average of 43%
Soybeans on the Dalian exchange fell in sympathy with US markets with July down 1.1% today at the equivalent of $22.24 a bushel

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Jul wheat down 59 @ 10.29, Jul KC down 51 @ 11.15, & Jul MNPLS down 43 @ 12.06
Wheat is lower again today with July trying to hang on above support at the bottom of the Bollinger Band
According to the USDA, 72% of spring wheat has been planted compared to 97% last year, with North Dakota at 59% and Minnesota at 53%
There are 3 million acres of spring wheat that have not yet been planted
The market is still trying to decide whether Russia will allow the export of Ukrainian wheat, but funds are taking the opportunity to exit positions

Jun LC up 1.925 @ 132.450 & Aug FC up 4.025 @ 169.150
Cattle are higher with higher boxed beef prices and steady cash
Declining weights are providing support to futures as more cattle are needed to provide the same amount of tonnage
Lower corn today is giving both live and feeder cattle a boost and are showing signs of a bottom
Choice cuts up 2.12 and select up 2.15
Cattle slaughter projected at 126K
CME Feeder Cattle Index for 5/31: down 1.50 @ 153.22

Jul hogs up 2.800 @ 110.800 & Jun pork cutout up .600 @ 112.700
Hogs are higher with the rest of the livestock complex as corn falls apart today
With higher cash and a higher cutout, demand seems to have been solid over the holiday weekend and the packer is being aggressive with purchases
If the cutout continues to rise it should support futures well as a sign of good demand
National Direct Afternoon report has cash up 1.90
Hog slaughter projected at 481K
CME Lean Hog Index for 6/1: up 0.22 @ 105.15

Amanda Brill