After the Bell | March 24, 2022

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Corn: May corn dropped 9 1/2 cents to $7.48 1/4 and December corn fell 4 3/4 cents to $6.67 1/2. Corn futures took spillover pressure from weaker soybean and wheat markets and uninspiring weekly export sales. USDA reported old-crop corn export sales totaling 979,500 MT for the week ended March 17, down 47% from the previous week and down 29% from average for the previous four weeks. Total corn export commitments are running 18.3% behind year-ago, whereas USDA forecasts exports will fall 9.2%. However, there’s still a lot of Ukrainian corn exports that must be replaced, so we remain hopeful export pace will be strong over the second half of the marketing year.

Soybeans: May soybeans fell 18 cents to $17.00 3/4. May soymeal rose 80 cents to $485.90 per ton and May soyoil fell 168 points to 74.29 cents per pound. Nearby soybeans fell for the first day in the past four in the wake of disappointing export sales. USDA reported net weekly soybean sales totaling 412,200 MT for 2021-22, down 67% from the previous week and down 70% from the prior four-week average. Expectations ranged from 500,000 MT to 1.3 MMT for 2021-22. For 2022-23, USDA reported net sales reductions of 13,000 MT for China.

Wheat: May SRW wheat fell 20 cents to $10.85 3/4. May HRW wheat fell 16 1/2 cents to $10.95. May spring wheat fell 6 1/2 cents to $10.82 3/4. Nearby SRW futures fell for a third day in a row and HRW contracts also tumbled as the markets extended a fund-driven, profit-taking pullback amid beliefs the markets have priced in disruptions from the Russia/Ukraine war. Additional pressure stemmed from lackluster weekly export sales. Net weekly wheat sales totaled 155,700 MT for 2021-22, up 7% from the previous week but down 51% from the prior four-week average.

Cotton: May cotton rose 87 points to 130.90 cents per pound, the highest settlement for a nearby contract in nearly 11 years. Cotton futures continues to draw support from gains in crude oil and strength in U.S. equities. USDA reported net weekly U.S. cotton net sales of 307,500 running bales (RB) for 2021-22, down 17% from the previous week and down 7% from the prior four-week average. Exports totaled 442,700 RB, a marketing-year high and up 29% from the prior four-week average.

Cattle: June live cattle rose 97.5 cents to $136.95. May feeder cattle rose 70 cents to $166.50, a three-week closing high. Cattle futures showed renewed strength as strong weekly export sales and continued wholesale market firmness offset weaker than expected cash. Feeder cattle were supported by weaker corn prices. Choice beef cutout values gained another 81 cents to $262.41, the highest in over a month. Movement totaled 129 loads. Live steers averaged $138.81 through this morning, down 29 cents from last week's average.

Friday’s USDA monthly Cattle on Feed Report is expected to show record March 1 inventories and a year-over-year increase of about 6.1% in February placements, based on a Reuters survey. Marketings are expected to rise about 4.0% from February 2021.

Hogs: June futures fell 90 cents to $122.075. Deferred futures appeared overdone after yesterday’s surge to contract highs, leading to today's corrective pullback. The preliminary figure for the next CME lean hog index reversed a recent dip, rising 29 cents to $101.50, but that still leaves nearby April futures at a premium of $1.275. The hog market seems to have hit a lull between active grocer ham buying in late February and early March, ahead of Easter, and the usual spring buying surge for grilling cuts. Pork carcass cutout values rose $1.62 today to a three-week high of $108.01, led by a gain of over $11 in hams. Movement totaled 257 loads, the lowest daily figure so far this week.

 

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