TFM Midday Update 8-25-2022

Provided by Stewart-Peterson Inc.

CORN

Sep corn down 1 @ 6.66
Corn began the day higher but has faded as the ProFarmer crop tour moves through Iowa and Illinois revealing decent yields in the states that have had the most beneficial weather
Yields in the Eastern Corn Belt will need to be decent to make up for the losses in drought ridden China and Europe or global stocks will get tight
Ethanol production rose modestly to 987,000 barrels per day, and ethanol stock increased by nearly 2% to 23.7 million barrels

Sep soybeans up 15 @ 15.76
September soybeans are higher while all deferred months are lower with strong demand for cash beans but concerns that yields may end up in decent shape
Recent rains may have helped the soy crop, which now has a chance to come near this year’s record yield of 52.0 bpa
The USDA reported a 19.0 mb sale of new-crop soybeans to China yesterday, and the increase in demand there as well as domestically has been generally supportive of prices

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Sep wheat down 5 @ 7.90, Sep KC down 1 @ 8.95, & Sep MNPLS up 2 @ 9.10
Wheat is lower today apart from the Minn contracts as the entire grain complex slides
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
Russia attacked Ukraine on their Independence Day today killing 25 civilians and stoking the conflict further
Ukraine has been exporting grain, but the bulk of exports have been corn and seed oil products and very little wheat

Aug LC down 0.075 @ 141.250 & Aug FC up 0.525 @ 181.750
Live cattle are slightly lower with higher feeders as corn begins to fade
Cash trade in the South has mostly been marked around 142, steady with last weeks average, and dressed deals in the North have been between 232 and 233, 1 to 2 dollars lower
The liquidation of the cattle herd continues due to heat and drought which will impact supplies down the road
Choice cuts up 0.03 and select down 1.18
Cattle slaughter projected at 126K
CME Feeder Cattle Index for 8/24: down 0.10 @ 180.50

Oct hogs up 0.450 @ 90.825 & Oct pork cutout up 0.275 @ 101.625
Hogs are higher today despite a drop in cash and fall in the cutout of 2.09, and the recent down trend in the cutout shows demand lightening up a bit
Hogs are still under technical selling pressure and may need to fill the gap on the Oct chart at 89.75 before making a move higher
National Direct Afternoon report fell by 1.62
Hog slaughter projected at 477K
CME Lean Hog Index for 8/25: down 0.80 @ 119.18

Amanda Brill