After the Bell | January 27, 2022
Corn: March corn futures fell 1 3/4 cents to $6.25 1/4, while December corn fell 6 cents to $5.66 3/4. Corn futures fell under corrective selling following yesterday’s close near a nine-month high. The U.S. dollar’s rally to 19-month highs also pressured grain markets. Strengthening exports and shrinking crop prospects in South American kept prices underpinned. UDSA reported net 2021-22 U.S. corn sales of 1.402 MMT for the week ended Jan. 20, up 29% from the previous week and up 84% from the average for the previous four weeks. Sales topped trade expectations ranging 600,000 MT to 1.2 MMT.
Soybeans: March soybeans rose 8 1/4 cents to $14.48 1/4 after hitting a contract high at $14.56 1/2. March soymeal rose $4.20 to $404.70, near a two-week high, and March soyoil rose 41 points to 64.34 cents after posting a contract high. A South America weather market and strong global demand continue to propel soybean bulls, sending March futures to a life-of-contract high for the second straight day. Crude oil rose to a seven-year high and Malaysian palm oil hit a record high. USDA reported net weekly U.S. soybean sales totaling 1.026 MMT, up 53% from the previous week and up 77% from the prior four-week average.
Wheat: March SRW wheat dropped 18 cents to $7.77, while March HRW fell 22 1/4 cents to $7.93 1/2. March spring wheat fell 13 3/4 cents to $9.02 1/2. Wheat futures were pressured by strong gains in the U.S. dollar index, which prompted concerns over already-lagging export demand and led to long liquidation. Additional pressure stemmed from ideas of reduced risks of an imminent attack on Ukraine by Russia. While tensions in the region are still high, traders’ worries have eased. Weekly wheat export sales topped expectations at 676,700 MT for 2021-22, hitting a marketing-year high.
Cotton: March cotton fell 70 points to 121.63 cents per pound. Cotton futures fell under modest profit-taking from recent gains but are still not far below last week’s 10-year high. Dollar strength, which makes dollar-denominated commodities more expensive for foreign buyers, contributed to price weakness, as did renewed declines in U.S. stocks. USDA reported net weekly U.S. cotton sales of 391,300 running bales (RB) for 2021-22 were up 43% from the previous week and up 55% from the prior four-week average.
Cattle: April live cattle fell 27.5 cents to $141.625, while March feeder cattle fell $1.30 to $159.50. Livestock futures took pressure on concern dollar strength may crimp export demand for U.S. beef and pork. Weakness in wholesale beef and expectations for rising animal supplies in the wake of last Friday’s bearish USDA Cattle on Feed report also weighed on futures. Choice cutout values fell another 35 cents today to $289.11, the lowest daily average since Jan. 17, while Select fell 62 cents to $279.10, but movement was again strong at 136 loads. USDA reported live steers averaging $136.97 through this morning, down 53 cents from last week’s average.
Hogs: April lean hogs fell $1.775 to $94.675, the lowest close in over a week. Hog futures extended a corrective decline after the sharp gains over the past week. Fundamentals are otherwise price-supportive, with the next CME lean hog index expected to gain 55 cents to $79.75, the highest since late October. Pork cutout values surged $3.59 today to $98.19, the highest since Nov. 3 and led by gains of over $7.00 in bellies and hams. Movement was light at about 254 loads.
