After the Bell | March 2, 2022
Corn: May corn fell 3/4 cent to $7.25, after rising earlier to a contract high at $7.47 3/4. Nearby futures touched a 10-month high before ending lower. Corn fell as some large speculators slashed long corn/short wheat positions even as the Russia/Ukraine war intensified. USDA’s Grain Crushings Report yesterday showed U.S. corn-for-ethanol use during January totaled 474 million bu., down 3.9 million bu. from December but up 57 million bu. from the same month in 2021. USDA’s export sales report tomorrow is expected to show U.S. corn sales of 600,000 to 1.2 million MT for the 2021-22 marketing year.
Soybeans: May soybean futures fell 27 cents to $16.63. May soyoil fell 34 points to 75.87 cents per pound. May soymeal dropped $6.30 to $448.00. Soybean futures fell sharply as reports of rain in dry areas of Brazil and Argentina triggered profit-taking and overshadowed reports of fresh export business. Early today, USDA reported daily soybean sales of 264,000 MT to “unknown destinations,” including 198,000 MT is for delivery during the 2021-22 marketing year and 66,000 MT for 2022-23. USDA also reported daily soybean sales of 266,000 MT to China, including 198,000 MT is for 2021-22 and 68,000 MT for 2022-23. StoneX lowered its forecast for Brazil's 2021-22 soybean crop to 121.17 MMT, down 4.2% from its February projection and a reflection of drought cutting yield prospects.
Wheat: May SRW wheat rose the 75-cent daily limit to $10.59, while May HRW wheat was locked at the 75-limit much of the day before ending up 72 1/4 cents to $10.75 1/4. May spring wheat rose 4 1/2 cents to $10.58 1/4. HRW and SRW futures price limits will remain expanded at 75 cents tomorrow. Winter wheat futures posted contract highs for the second consecutive day and neared 14-year highs as the escalating Russia/Ukraine conflict stoked concern about the availability of supplies from the Black Sea region. Russia and Ukraine combined account for about 29% of global wheat exports. Turmoil in the Black Sea region may push export business elsewhere. “Global buyers of grains have been increasingly turning to the U.S., Europe or South America to secure supplies in the immediate term,” ING said.
Cotton: May cotton futures fell 421 points to 118.54 cents per pound, the contract’s lowest closing price since $118.44 cents on Jan. 25. Cotton futures fell sharply as dollar strength and economic uncertainty sparked long liquidation ahead of USDA’s weekly export sales report tomorrow. Russia’s week-long war against Ukraine continued to keep global markets on edge, coming amid already-soaring U.S. inflation burdening consumers. The U.S. dollar index reached a 21-month high, stirring concern that dollar-denominated commodities will increasingly price out foreign buyers.
Cattle: April live cattle fell 42.5 cents to $140.10, the contract’s lowest closing price since Jan. 25. April feeder cattle rose $3.20 at $163.00. Live cattle futures extended a recent slide as the Russia/Ukraine war stoked concern demand for beef will suffer. Wholesale beef extended a five-week slump, with Choice grade cutout values down another 96 cents today to an 11-month low at $255.72. Movement was strong at 145 loads. A four-week upswing in the cash market appeared to be slipping. Some negotiated fed cattle traded around $140 to $141 in southern markets and USDA reported an average live steer price at $141.51 as of this morning. Last week's average was $143.22.
Hogs: April lean hogs rose 10 cents to $106.30 while most deferred contracts ended lower. Hog futures ended mixed despite firm cash fundamentals, as the market appeared to be settling into a sideways pattern common for this time of year. The next CME lean hog index is seen rising 18 cents to $99.84, a six-month high. Pork cutout values rose 23 cents today to $108.42, after dropping the three previous days. Movement totaled 242.6 loads. Slaughter so far this week was an estimated 1.414 million head, down 9,000 head from the same period last week and down 69,000 head from the same period in 2021.
