After the Bell | February 14, 2022
Corn: March corn futures rose 4 3/4 cents to $6.55 3/4, the highest close for a nearby contract since $6.83 on July 14. December corn rose 3 1/2 cents to $5.98 1/4 after posting a contract high. Corn futures erased early declines and turned higher late amid reports Ukraine president Volodymyr Zelensky said he expects Russia will invade his country Wednesday. But Bloomberg reported the comments appeared to be a sarcastic reference to other world leaders predicting a specific date for a Russian attack. USDA reported 1.455 MMT (57.3 million bu.) of corn inspected for export during the week ended Feb. 10, up from 1.065 MMT the previous week and above expectations.
Soybeans: March soybeans fell 13 cents to $15.70. March soymeal dropped $8.20 to $448.40. March soyoil firmed 90 points to 65.81 cents. Soybean futures fell on followthrough pressure in the wake of corrective losses the final two days last week. Weekly USDA export inspections, at 42.4 million bu., were within expectations, but stronger than the normal seasonal levels. Today’s figure lowered the required pace to hit USDA’s forecast to an average of 18.7 million bu. the remainder of the marketing year. Traders should get another bullish demand figure tomorrow from NOPA’s crush report for January, which is expected to be an all-time record.
Wheat: March SRW wheat rose 1 1/2 cents to $7.99 1/4 and March HRW wheat rose 4 1/4 cents to $8.28 1/2, the highest settlements for both contracts since Jan. 25. March spring wheat rose 4 1/2 cents to $9.66, the highest close since Jan. 4. Winter wheat futures rebounded late today amid concern a potential Russian invasion of Ukraine could disrupt the global grain trade. USDA reported weekly wheat export inspections at 435,188 MT for the week ended Feb. 10, up from 433,921 MT the previous week and within expectations. Wheat producers in the U.S. Plains are expected to receive some relief from dryness over the next few weeks, but likely not until March, World Weather said.
Cotton: March cotton futures fell 235 points to 122.93 cents per pound, the lowest close since Jan. 27, while May futures fell 230 points to 120.61 cents. Cotton futures fell to the lowest levels in over two weeks behind pressure from a stronger U.S. dollar and weakness in U.S. stocks. The National Cotton Council (NCC) projected U.S. cotton acreage will rise 7.3% this year to 12.0 million acres, based on its annual producer survey. U.S. production is estimated to be 17.3 million bales with an average yield of 850 pounds per acre.
Cattle: April live cattle rose 17.5 cents to $146.35. April feeder cattle rose 80 cents to $171.50. Cattle futures swung both directions today before posting a firm close, suggesting the selling pressure late last week was likely a correction in a bull market. Last week’s average live steer price of $140.48 rose 72 cents from the previous week but wasn’t as high as some anticipated. This week’s cash market trade will likely be slow to develop and packer bids may not be established until around midweek. Wholesale beef extended its recent slump, with Choice cutout values dropping 56 cents today to $273.96, a five-week low. Movement was light at 76 loads.
Hogs: April lean hogs rose 10 cents to $102.325, while February hogs expired at $91.625, a gain of $1.125. Hog futures stabilized after last week’s spike to contract highs and subsequent selloff that produced some chart damage. Still-solid cash market fundamentals will make it difficult for bears to press their case much further. Pork cutout values fell $1.98 today to $107.98, still near a fourth-month high posted Friday. Movement totaled 280 loads. The CME lean hog index projected to rise another $1.59 to $90.51, the highest since mid-October. The national direct five-day rolling average cash hog price is quoted today at $79.89.
