After the Bell | February 16, 2022
Corn: March corn futures rose 9 cents at $6.47. Corn futures rebounded from yesterday’s losses behind, smaller production prospects for South America, improved ethanol demand and strong outside markets, such as crude oil. U.S. ethanol production rose 15,000 barrels per day (bpd) to an average of 1.009 million bpd during the week ended Feb. 11, up 11% from the same week last year, according to the Energy Information Administration. Tomorrow’s weekly USDA export sales report is expected to show net U.S. corn sales of 500,000 to 1 million MT in the 2021-22 marketing year, and sales of zero to 250,000 MT in the 2022-23 marketing year.
Soybeans: March soybeans jumped 36 1/4 cents to $15.87 1/2, the highest close in a week. March soyoil surged 134 points to 66.97 cents per pound, the highest close for a nearby contract since July 20. March soymeal surged $10.60 to $449.40. Soybeans rose for the first time in three sessions amid fresh export business and expectations for smaller South American crops will push more demand to the U.S. Early today, USDA reported a daily sale of 132,000 MT of soybeans for delivery to China during the 2022-23 marketing year. Since Jan. 28, USDA has reported a combined 3.2 MMT of soybean sales to China or “unknown destinations.”
Wheat: March SRW wheat rose 3/4 cent to $7.80 1/2. March HRW wheat rose 2 cents to $8.08. March spring wheat ended Wednesday unchanged at $9.53. Wheat futures ended mixed after trading in narrow ranges as traders eyed the Russia-Ukraine standoff. A Russian invasion of Ukraine could disrupt wheat exports out of the Black Sea region, though tensions appeared to ease in recent days following Moscow's announcement that some of its troops were returning to base after drills. USDA tomorrow is expected to report weekly net U.S. wheat sales of 75,000 to 500,000 MT for 2021-22.
Cotton: March cotton futures fell 113 points to 121.91 cents per pound, the lowest closing price since Jan. 27, while May cotton fell 129 points to 119.49 cents. Cotton futures ended near three-week lows amid ongoing long liquidation following the climb to contract highs early this month. A repeat of disappointing numbers in tomorrow’s weekly USDA export sales report may generate additional selling pressure.
Cattle: April live cattle rose 2.5 cents to $146.925. March feeder cattle fell $1.275 to $167.45. Live cattle futures paused as traders waited for cash trade to establish, while feeders were pressured by strength in corn prices. Cash cattle trading has been fairly quiet so far this week, with unconfirmed talk of $142 trade in Kansas. Cash sources indicate feedlots were asking $142 to $143 for showlist supplies in the Southern Plains, up from last week’s $140.48 average, while the northern market has been quiet so far. Choice cutout values dropped 75 cents to $269.62, the lowest since Jan. 6. Movement totaled 111 loads.
Hogs: April lean hog futures rose $1.25 to $105.40, the highest settlement for a nearby contract since prices topped $110.00 last August. Ongoing wholesale and cash market strength continued to power gains in hog futures. The preliminary figure for the next the CME lean hog index is up $1.51, to $93.35, the highest since early October. Pork cutout values fell 20 cents today to $106.52 but are still near a four-month high reached Feb. 11. Movement was relatively light at 231 loads.
