TFM Midday Update 8-1-2022

Provided by Stewart-Peterson Inc.

CORN

Sep corn down 20 @ 5.97
Corn is lower this morning as Ukraine’s first grain ship left today carrying 1.0 mb of corn
Heat advisories remain in the Western and Central Corn Belt, but the Eastern Corn Belt will see more moderate temperatures and some rain
Friday’s USDA report showed that one bushel of 7.28 corn in Iowa could produce 8.87 worth of ethanol and distillers’ grains, incentivizing processors
Friday’s CFTC report showed funds as sellers again, reducing their net long position by 4,515 contracts to 120,788 contracts

Sep soybeans down 61 @ 14.26
The soy complex is losing the most ground today as rain chances in the Eastern Corn Belt improve, and both crude oil and palm oil fall
Nancy Pelosi will reportedly be visiting Taiwan, inflaming tensions with China and spooking the market further
Friday’s USDA report showed the crush premium in Illinois increasing from 2.43 to 3.70 a bushel, a large jump and big incentive to processors
Friday’s CFTC report showed funds liquidating 156 contracts leaving them net long 87,676 contracts

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Sep wheat down 22 @ 7.86, Sep KC down 25 @ 8.50, & Sep MNPLS down 17 @ 8.89
Wheat is lower after a ship carrying corn reportedly left Odesa this morning, signaling that wheat exports from the country may follow
Russia has intensified their attacks, targeting Ukraine’s port of Mykolaiv yesterday and killing a prominent owner of one of Ukraine’s largest grain export companies
In the US, wheat crops across the Pacific Northwest and Montana were hit by extremely hot temperatures over the weekend and have excessive heat warnings posted today
Friday’s CFTC report showed funds adding 3,574 contracts to their net short position increasing it to 10,390 contracts

Aug LC up 0.025 @ 136.500 & Aug FC up 1.075 @ 179.650
Both live and feeder cattle are higher with feeders leading the way on lower corn
The packers have not needed to bid aggressively as increased slaughter is being met with sufficient cattle
Higher boxed beef last week indicates that beef is moving well despite higher food prices
Choice cuts up 1.47 and select up 1.44
Cattle slaughter projected at 125K
CME Feeder Cattle Index for 7/29: down 0.24 @ 172.31

Aug hogs down 0.400 @ 120.250 & Aug pork cutout down 0.100 @ 125.975
Hogs are lower this morning as cash has declined and the cutout fell as well by 1.45
Despite being lower today, the cutout has moved higher in general showing good pork demand
Hog weights continue to fall with the heat, dropping 0.8 pounds from the previous week to an average weight of 276.7 pounds, down 1.4 pounds from a year ago
National Direct Afternoon report declined 2.51
Hog slaughter projected at 412K
CME Lean Hog Index for 8/1: up 0.84 @ 121.42

Amanda Brill