TFM Midday Update 8-24-2022

Provided by Stewart-Peterson Inc.

CORN

Sep corn down 1 @ 6.59
Corn was higher on the open but has faded since and is now lower as profit taking kicks in and options expiration nears
The ProFarmer crop tour is now in Illinois, and they may be seeing better crop conditions which could be pressuring the market
Corn traded above its upper Bollinger Band so technical selling is likely kicking in with resistance at the 100-day moving average

Sep soybeans up 3 @ 15.70
Soybeans, meal, and bean oil were also trading sharply higher on the open but have faded and are now down for the day
Today private exporters reported sales of 517,000 mt of soybeans for delivery to China during the 22/23 marketing year, a big sale that should be supportive
As in corn, profit taking, a higher US dollar, and the approaching options expiration could be pressuring the market lower

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Sep wheat up 2 @ 7.85, Sep KC up 6 @ 8.88, & Sep MNPLS down 8 @ 8.92
Wheat is slightly higher to unchanged for the day but has faded since the open along with corn and soybeans
The drought in China appears to mainly be affecting their wheat crop as well as rice production, and could mean more imports from the US
In the US, winter wheat areas of the southwestern Plains have chances for rain starting this weekend and continuing into early September

Aug LC down 0.200 @ 141.425 & Aug FC up 0.125 @ 181.025
Live cattle are slightly lower while feeders are higher on higher corn, while cash traded steady in the South yesterday around 142
Remaining asking prices for showlists in the South are 144, and are not yet established in the North, but higher northern dressed trade would be supportive to futures
Choice cuts down 1.72 and select up 0.44
Cattle slaughter projected at 126K
CME Feeder Cattle Index for 8/23: down 0.06 @ 180.60

Oct hogs down 2.050 @ 90.850 & Oct pork cutout down 1.525 @ 101.850
Hog futures are lower today after the cutouts fell by a whopping 12.53 with bellies down 48.59 and hams down 11.07
Hog slaughter has kept at a good pace as lower weights and good demand keep packers aggressive
The cutout could easily reverse most of its massive loss from yesterday giving futures a boost
National Direct Afternoon report rose by 0.77
Hog slaughter projected at 477K
CME Lean Hog Index for 8/24: down 0.80 @ 119.18

Amanda Brill