After the Bell | March 14, 2022
Corn: May corn fell 14 1/4 cents to $7.48 1/4. December corn fell 2 3/4 cents to $6.52 1/2. Corn futures were initially pressured by sharp losses in wheat overnight. But as wheat rebounded, corn failed to follow. Instead, corn was pressured by profit-taking and corrective selling, largely due to pressure on crude oil futures and overall weakness in the commodity sector. USDA’s weekly corn export inspections declined to 45.1 million bu. in the week ended March 10 from 62.3 million bu. the previous week. Corn inspections are running 14.2% behind year-ago and will need to average 46.1 million bu. the remainder of the marketing year to hit USDA’s export target of 2.5 billion bu.
Soybeans: May soybeans fell 5 1/2 cents to $16.70 1/2, the contract’s lowest settlement since $16.59 1/2 on March 7. May soymeal rose $7.20 to $484.30 per ton, a lifetime-high close for the contract. May soyoil fell 208 points to 73.95 cents per pound. Soybean futures erased overnight gains and ended lower, pressured by spillover weakness from wheat and crude oil markets. Price gains overnight stemmed from reports Argentina halted export sales registrations for soyoil and meal, which could tighten oilseed supplies already squeezed by drought.
Wheat: May SRW wheat rose 10 1/4 cents to $10.96 1/4. May HRW wheat rose 10 3/4 cents to $11.00. May spring wheat futures ended unchanged at $10.70 1/4. Wheat futures gained on short covering that lifted HRW futures by the close, but SRW futures fell in part due to spillover from sharp declines in crude oil. Ongoing concern over disruptions to global wheat trade from the Russia-Ukraine war limited selling interest, but prospects of a ceasefire emerged overnight, pressuring futures. Russia is reportedly gradually resuming wheat exports from its Black Sea ports and may suspend exports of wheat and other grains starting tomorrow until June 30.
Cotton: May cotton futures fell 226 points to 118.77 cents per pound. Cotton futures fell sharply amid pressure from a broad selloff in commodity markets and concern over renewed Covid lockdowns in China, which raised concern over demand. In China, one of the biggest consumers of U.S. cotton, financial hubs such as Shanghai and Shenzhen, have been locked down as COVID-19 cases surge there.
Cattle: April live cattle firmed $3.025 to $140.325, the highest closing price since March 1. April feeders jumped $4.425 to $162.40. Feeder cattle were supported by weaker corn futures. Additional support came from firmer cash prices at the Oklahoma City cash feeder cattle auction. USDA reported cash steers traded mostly $2 to $4 higher, with feeder heifers $3 to $6 higher. Buyer interest was limited in live cattle initially this morning, but the strength in feeders fueled a wave of buying as the market built on last Friday’s gains. Wholesale beef showed signs of bottoming, as Choice cutout values rose 80 cents today to $255.51, the highest daily average since March 2. Movement totaled 83 loads. Live steers averaged $138.30 last week, down $2.31 from the previous week and the second consecutive weekly decline.
Hogs: April lean hogs fell 52.5 cents to $102.20. Sharp gains in cattle futures markets spilled over into deferred hog futures and limited selling pressure on nearby April. The charts suggest cattle futures have put in near-term bottom and have more room on the upside, which may support fresh buying in hog futures. Cash hog market fundamentals are also improving. The CME lean hog index quote firmed 85 cents today is projected up 7 cents tomorrow at $100.83, a six-month high. Pork cutout values rose 64 cents today to an average of $103.19 on strong movement totaling nearly 348 loads.
