TFM Midday Update 8-23-2022

Provided by Stewart-Peterson Inc.

CORN

Sep corn up 25 @ 6.59
Corn is trading higher this morning after the USDA dropped their crop rating by 2% to 55% good-to-excellent, the fourth lowest rating since 2000
The 6-to-10-day forecast shows better chances of rain from the southwestern Plains to the Ohio River Valley, as well as the Central Corn Belt
Yesterday’s report from the USDA showed a slight expansion in the spread between the cost of corn and the value of corn products in Iowa, a good indication of corn demand

Sep soybeans up 37 @ 15.65
Soybeans are lower this morning after the USDA lowered its good-to-excellent rating for the bean crop by 1% to 57% good-to-excellent with major drops in Arkansas and Kansas
Front month Sep continues to lead the way higher with very incentivizing crush margins making demand for cash soybeans high
The heatwave and drought in China could be seriously affecting their production and in turn may be leading to more Chinese soybean purchases from the US

Like what you’re reading?

Sep wheat up 25 @ 7.95, Sep KC up 28 @ 8.93, & Sep MNPLS up 20 @ 9.09
All three wheat products are higher again today as trade is becoming more aware of the recent droughts in Europe and China that could lead to very tight global supplies
In China, the largest freshwater lake, Poyang Lake, is down to roughly 1/4 of its normal size
One third of winter wheat has been harvested and the USDA’s crop ratings stayed the same at 64% good-to-excellent
Wheat sold off on the news that Ukraine would be allowed to export grain, but it has been over a month and still no wheat has left the country

Aug LC up 0.225 @ 141.400 & Aug FC down 0.475 @ 180.925
Feeder cattle are down significantly with higher corn, and in turn are pulling live cattle lower
Feedlots still may have the upper hand as show lists are smaller giving the packers less to choose from, and cash asking prices in the South are starting at 145
Friday’s Commitment of Traders showed funds as net buyers of 16,964 contracts increasing their net long position to 6,036 contracts
Choice cuts up 0.24 and select up 0.42
Cattle slaughter projected at 126K
CME Feeder Cattle Index for 8/22: up 1.45 @ 180.66

Oct hogs up 1.925 @ 95.850 & Oct pork cutout up 1.775 @ 106.400
Hogs are rallying this morning after a large jump in cash and rise in the cutout by 0.46
There may be follow through of increased cash again today as packers need hogs to fill increased chain speed
The drought and extreme heat in China may result in them importing more US pork
National Direct Afternoon report rose by 8.55
Hog slaughter projected at 475K
CME Lean Hog Index for 8/23: down 0.31 @ 119.98

Amanda Brill