After the Bell | February 23, 2022

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Corn: May corn futures rose 8 3/4 cents to $6.81 1/4 after posting a contract high at $6.82 1/4. December futures rose 5 1/2 cents to $6.11 1/4. Soaring wheat and soybean futures pulled the corn market higher with top global grain suppliers Russia and Ukraine on the verge of war. Escalating uncertainty has grain end-users scrambling to secure supplies and speculators ramping up bullish bets. Corn futures likely will follow the lead of wheat and soybean markets over the near-term. Drought-driven crop losses in South America continue to underpin prices.

Soybeans: May soybean futures soared 36 cents to $16.71 after posting a contract high at $16.75. May soyoil rose 52 points to 70.58 cents per pound, while May soymeal jumped $15.20 to $466.00. The soy complex followed wheat higher on escalating Russia/Ukraine tensions and ongoing crop stress in South American. Fresh export business provided further support. Early today, USDA reported a daily sale of 132,000 MT of soybeans for delivery to China during the 2022-23 marketing year, the latest in a four-week string of purchases. Since Jan. 28, USDA has reported a combined 3.78 MMT of soybean sales to China or “unknown destinations.”

Wheat: May SRW wheat futures rose 32 1/4 cents to $8.84 3/4, while May HRW wheat rose 31 cents to $9.18. May spring wheat rose 15 cents to $10.02 3/4, a two-month closing high. Nearby HRW and SRW futures ended at the highest levels since late 2012. Wheat futures soared on concern Russia’s aggression toward Ukraine will disrupt the global grain trade. Russia and Ukraine combined account for nearly 30% of global wheat exports and almost one-fifth of world corn exports. Deteriorating conditions for the U.S. HRW wheat crop, based on individual state ratings, exacerbated supply concerns.

Cotton: May cotton futures rose 101 points to 121.30 cents per pound, the contract’s highest close since Feb. 11. Cotton futures ended near two-week highs as escalating Russia-Ukraine tensions boosted grain markets, providing spillover strength to other raw commodities. Cotton’s upside was held in check by weaker crude oil and slumping U.S. stocks, which fell into correction territory, based on a drop of over 10% in the S&P 500 index since the benchmark’s early-January record peak. The shaky stock market suggests growing concern inflation combined with war in Europe could slow economic growth.

Cattle: April live cattle fell $1.275 to $144.75, the lowest close since Jan. 31. April feeder cattle fell 85 cents to $168.275. Live cattle futures fell as slumping wholesale beef and eroding technicals suggest the market has established a seasonal top, overshadowing continued cash market strength. Feeder futures were pressured by corn futures’ rally near $7.00. Choice beef cutout values fell 76 cents today to $260.88, the lowest daily average since mid-December, though movement was strong at 196 loads. Live steers averaged $143.66 through this morning, up from last week's average of $142.36.

Hogs: April lean hog futures plunged $4.055 to $108.025 after posting a contract high at $112.85 earlier in the session. Futures posted a sharp reversal lower as signs of a cash market top fueled a profit-taking correction. Tomorrow's CME Lean Hog index is expected to be unchanged at $98.16 after surging sharply since the end of 2021. Wholesale pork appeared to stabilize from a recent slide. Pork cutout values rose 36 cents today to $109.12, though movement was light at 248 loads.

 

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