Corn: March corn futures rose 5 1/4 cents to $5.90 1/4, while December futures, which expired today, rose 4 1/2 cents to $5.88 3/4. Corn futures rose for the first day in the past three behind strength in soybeans and soybean meal. Concern over dry conditions in South America also supported prices, even with some parts of Brazil receiving rain this week. Crop Consultant Dr. Michael Cordonnier cut his forecast for Brazil’s corn production by 1 MMT to 116 MMT.
Soybeans: January soybeans rose 15 1/2 cents to $12.59 1/2 per bushel, while January soymeal surged $14.80, or 4.3%, to $376.90, the contract’s highest closing price since July 2. January soyoil fell 123 points to 52.01 cents per pound, the lowest close since June 17. Soymeal powered soybeans higher amid active spreading against soyoil and expectations for strong demand for livestock feed, particularly from China as the country rebuilds its hog herd. Tomorrow’s National Oilseed Processors Association (NOPA) monthly report is expected to show U.S. processors continued their strong crushing pace in November.
Wheat: March SRW wheat futures fell 1 3/4 cents to $7.87. March HRW wheat fell 3/4 cent to $8.11 3/4. March spring wheat futures rose 2 3/4 cents to $10.21. Winter wheat futures markets fell slightly in sideways trade, burdened by dollar strength and lagging exports, reflecting U.S. wheat’s continued lack of competitiveness on world markets.
Cotton: March cotton futures fell 91 points to 105.90 cents, near the session low. Cotton futures were pressured by a sell-off in U.S. stocks, a stronger U.S. dollar and weaker crude oil prices. Cotton futures may have seen some selling pressure on reports many companies, including textile manufacturers, in Covid-stricken Zhejiang, China, have suspended operations.
Cattle: February live cattle futures fell 55 cents to $138.30 and January feeder cattle fell 95 cents to $164.575. Live cattle futures fell amid slumping wholesale beef and indications a two-month rally in the cash market has ended. Cash sources reported trade in Kansas today around $138.00, which would be down close to $2.00 from last week. Packers have shortened holiday schedules the last two weeks of this month and are unlikely to bid as aggressively as they did in recent weeks. Choice cutout values fell another $2.50 today to $260.72, the lowest daily average since April 5, while Select values dropped $4.84 to $248.80.
Hogs: February lean hog futures fell 67.5 cents to $80.075, while December futures, which expired today, fell 10 cents to $72.175. Pressure on hog futures may have stemmed from expectations for ham price weakness as grocers finish buying ahead of year-end holidays. That buying will likely wrap up over the next few days and usher in the ham market’s typical late-year weakness. Pork cutout values fell $1.55 today to an average of $85.48, though hams rose $1.99.