After the Bell | February 9, 2022
Corn: March corn futures rose 14 1/2 cents to $6.46 3/4, the highest close for a nearby contract since July. December futures rose 6 1/2 cents to $5.88 1/2 after posting a contract high. Rallying soybeans and broad commodity strength offset larger than expected projections for U.S. and South American supplies. USDA, in its monthly Supply & Demand Report, held its 2021-22 U.S. corn ending stocks forecast unchanged at 1.54 billion bu., contrasting with expectations for a 28-million-bu. reduction. Tomorrow’s weekly USDA export sales report is expected to show net U.S. corn sales of 500,000 to 900,000 MT in the 2021-22 marketing year.
Soybeans: March soybeans surged 25 3/4 cents to $15.94 3/4, the highest closing price since $16.03 3/4 on May 14. March soyoil rose 75 points to 64.10 cents and March soymeal jumped $7.80 to $461.90, the highest since January 2021. Ongoing concern over drought-reduced South American production pushed soybean futures to nine-month highs, even as USDA cuts to Argentine and Brazilian estimates weren’t as large as anticipated. USDA projected Brazilian and Argentine soybean crops at 134.00 MMT and 45 MMT, respectively, both about 500,000 MT above pre-report estimates.
Wheat: March SRW wheat rose 6 1/4 cents to $7.85, the highest closing price since Jan. 28. March HRW wheat rose 13 3/4 cents to $8.15. March spring wheat rose 13 1/4 cents to $9.53 3/4, the highest close since Jan. 4. USDA’s larger than expected cut to projected global supplies overshadowed bearish domestic exports and stocks updates. USDA estimated global wheat stocks at the end of the 2021-22 marketing year at 278.21 MMT, down 1.74 MMT from 279.95 MMT in January. Stocks were expected to be reduced by about 60,000 MT. Global supplies are now seen dropping 3.4% from 2020-21, underscoring tight supplies of milling-quality wheat.
Cotton: March cotton fell 72 points to 126.43 cents per pound, while May cotton fell 24 points to 123.80 cents. Cotton futures fell after USDA boosted its forecast for U.S. supplies at the end of the 2021-22 marketing year and lowered expected exports, a reflection of logistical and supply-chain snags that have led to lagging shipments. USDA raised its cotton ending stocks forecast by 300,000 bales from last month to 3.5 million bales. On the demand side of the balance sheet, USDA cut exports by 250,000 bales, to 14.75 million bales and lowered unaccounted use by 50,000 bales, to -20,000 bales.
Cattle: April live cattle rose $1.65 to $147.825 after reaching a contract high at $147.925, while nearby futures ended at a six-year high. March feeder cattle rose $1.40 to $168.275. Active cash cattle trade in southern markets saw as at least three packers bidding $140, up slightly from last week. Nearby February live cattle futures are about $2.00 over last week’s five-area live steer average of $139.76, suggesting a firmer cash tone the next few weeks. Choice cutout values fell $1.67 today to $275.79, the lowest daily average since Jan. 7, but movement was strong at 132 loads.
Hogs: April lean hog futures rose 97.5 cents to $104.775 after setting a contract high at $105.475. Hog futures posted contract highs for the third straight day on robust cash fundamentals. The CME lean hog index reached the highest levels since mid-October and is expected to climb another 60 cents tomorrow to $87.22. The expiration of February futures Feb. 14 implies an advance of almost $3.00 over the next three sessions. Wholesale pork market extended recent strength, with cutout values jumping $7.55 today to $104.84, the highest daily average since Oct. 14. But movement was light at 286 loads.
