After the Bell | December 15, 2021
Corn: March corn futures fell 4 1/2 cents to $5.85 3/4, after rising to a three-week high earlier. Corn futures were pressured by sharp declines in the wheat market, which came amid growing concern over the spread of new coronavirus variants. U.S. ethanol production averaged 1.087 million barrels per day (bpd) the week ended Dec. 10, down 3,000 bpd from the previous week but up nearly 14% from the same week a year ago, according to the Energy Information Administration.
Soybeans: January soybeans rose 3 cents to $12.62 1/2. January soymeal fell $4.70 to $372.20, after earlier rising to a 5 1/2-month high. January soyoil rose 123 points to 53.47 cents. Soybean futures bounced back after taking early pressure from a sell-off in the wheat market and reports of rain in dry parts of South America. The U.S. soybean crush fell below expectations in November while soyoil stocks tightened for the first time in five months, according to the National Oilseed Processors Association.
Wheat: March SRW wheat tumbled 31 cents to $7.56, the contract’s lowest settlement since $7.53 1/2 on Oct. 21. March HRW wheat dropped 26 1/4 cents to $7.85 1/2, a five-week low. March spring wheat fell 11 3/4 cents to $10.09 1/4. Wheat futures fell amid technical selling as the market pushed under key chart levels. U.S. wheat remains overpriced on global markets, and there are reports of improved crop conditions in Australia.
Cotton: March cotton futures fell 11 points to 105.79 cents per pound. Cotton settled near a two-week low as the U.S. dollar strengthened after the Federal Reserve said it would end its pandemic-era bond purchases in March and may hike interest rates three times next year. Traders await USDA's weekly export sales report tomorrow for an update on demand from China and other top U.S. customers.
Cattle: February live cattle dropped $1.725 to $136.575, the lowest closing price since $136.40 on Nov. 17. January feeder cattle fell $1.15 to $163.425. Cattle futures were pressured by fund selling and eroding cash fundamentals. Cash cattle this week were trading around $2 lower than last week, though feedlot sales were limited. Traders expect the cash market to weaken further through year-end. Choice cutout values extended a recent slide, falling 46 cents today to $260.26, the lowest daily average since April 5.
Hogs: February lean hog futures dropped 75 cents to $79.325. Hog futures fell for a third consecutive day amid export concerns. China will raise import tariffs on most pork products next year amid the sharp increase in domestic production. Tariffs for most favored nations, including the U.S., will return to 12% on Jan. 1, from 8% currently. Chinese imports of U.S. pork are already down sharply from last year. The CME lean hog index fell 8 cents to $72.10 today but has risen seven of the past 10 trading sessions and will be up 20 cents tomorrow. Pork cutout values rose $2.35 today to an average of $87.83, near a two-week high and led by a gain of over $12.00 in bellies.
