TFM Midday Update 7-13-2022

Provided by Stewart-Peterson Inc.

CORN

Sep corn up 14 @ 6.08
Corn is higher as forecasts remain dry for the central and Western Corn Belt over the next two weeks with above normal temperatures and below normal rain coinciding with pollination
CPI data came out with inflation at 9.1%, well above the forecast of 8.8% and the highest since 1991, but equity markets are recovering following the report
China’s corn price fell 13 cents to the equivalent of 10.24 per bushel, and they have made plans to sign a deal to import Brazilian corn

Sep soybeans up 11 @ 13.74
Soybeans and meal are higher this morning while soybean oil is lower despite crude oil recovering after this morning’s bearish CPI data was released
Malaysian palm oil plunged 8.6% today gapping lower to the lowest level since a year ago, bringing soybean oil lower
Yesterday’s USDA report showed hints of weaker demand with old crop China imports of soybeans falling by 2 mmt and new crop imports down 1 mmt
New fears of Covid lockdowns in China may implicate weaker demand

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Sep wheat up 17 @ 8.31, Sep KC up 11 @ 8.79, & Sep MNPLS up 19 @ 9.38
Wheat futures are higher across the board and finally getting a break from selling pressure as the entire grain complex is up following today’s CPI data
The USDA’s estimate of 22/23 hard red spring ending stocks of 126 mb is below last year’s drought-stricken 140 mb despite stronger yield potential
Humanitarian corridors for exporting Ukrainian wheat continue to be discussed between the UN, Turkey, and Russia

Aug LC up 0.300 @ 136.975 & Aug FC up 0.325 @ 179.850
Both live and feeder cattle are mostly unchanged as grain prices recover
Cash trade is still not established but asking prices in the South are 139 to 140 and 235 or more in the North
Yesterday Aug feeder cattle had their highest close since March 30
Choice cuts up 0.37 and select down 0.83
Cattle slaughter projected at 126K
CME Feeder Cattle Index for 7/12: down 0.87 @ 171.34

Aug hogs up 2.350 @ 111.350 & Aug pork cutout up 1.975 @ 115.500
Hogs are higher with Aug leading the way up following a strong gain in cash and an increase in the cutout of 2.40
The Livestock and Poultry World Markets and Trade report showed that global exports of pork may decline 39% for China with Hong Kong potentially purchasing 21% less
Hog futures are poised to break above chart resistance if the cutout continues to work higher
National Direct Afternoon report rose 5.19
Hog slaughter projected at 471K
CME Lean Hog Index for 7/13: up 0.80 @ 112.57

Amanda Brill