TFM Midday Update 8-2-2022

Provided by Stewart-Peterson Inc.

CORN

Sep corn down 13 @ 5.94
Corn is lower with the rest of the grain markets as moderate rain amounts are expected from Illinois to Michigan and Ohio
South Dakota and southern Minnesota along with Oklahoma and Arkansas have heat advisories posted and are expecting triple digit temperatures
Yesterday the USDA said 61% of the corn crop was rated good-to-excellent, the same as last week
A ship carrying 1.0 million bushels of corn left Odesa yesterday and is so far making progress to its destination in Lebanon

Sep soybeans down 616 @ 14.16
Soybeans are lower as prospects for rain in the eastern Midwest increase this week along with milder temperatures
The western and central growing areas are still expected to have crop stress as heat and dryness continue to be forecast there
Nancy Pelosi has landed in Taiwan today and traders are concerned about China’s threats of retaliation
The USDA reported that 60% of the soybean crop was rated good-to-excellent, up one percentage point from last week

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Sep wheat down 20 @ 7.80, Sep KC down 20 @ 8.46, & Sep MNPLS down 19 @ 8.78
Wheat is lower after the USDA raised the good-to-excellent crop rating for spring wheat from 68% to 70% yesterday, with Minnesota having the highest increase at 10%
The northwestern US plains will be hot and dry this week before light rain chances appear in the 6-to-10-day forecast
Traders have been watching the events in Ukraine unfold as the first grain ship has left the port of Odesa and more are likely to follow

Aug LC down 0.125 @ 136.625 & Aug FC down 1.000 @ 178.650
Cattle are trading quietly this morning with live cattle down slightly and feeders mildly lower despite lower corn
Higher boxed beef should provide some support and cash is expected to be slightly higher with asking prices starting in the South at 137
Friday’s CFTC data showed funds as buyers last week of 17,840 contracts increasing their net long position to 37,505 contracts
Choice cuts up 1.36 and select up 0.65
Cattle slaughter projected at 125K
CME Feeder Cattle Index for 8/1: up 2.43 @ 174.74

Aug hogs down 0.350 @ 120.100 & Aug pork cutout UNCH @ 125.975
Hogs are lower today as cash fell and the cutout increased just 0.36
The pattern has been higher cash on Tuesday’s, which is expected again this week, but slaughter was significantly lower
Friday’s Commitment of Traders showed funds as net buyers of 5,730 contracts, increasing their net long position to 51,075 contracts
National Direct Afternoon report declined 0.94
Hog slaughter projected at 462K
CME Lean Hog Index for 8/2: up 0.45 @ 121.87

Amanda Brill