After the Bell | December 17, 2021
Corn: March corn futures rose 2 cents to $5.93 1/4, up 0.6% for the week and the highest closing price since $5.95 on July 1. Corn gained on bullish technical and signs of strengthening exports, though weekly export numbers will have to remain strong in coming weeks to keep futures elevated. Domestically, strong demand from domestic ethanol producers should continue to support futures.
Soybeans: January soybean futures rose 8 cents to $12.85 1/4 cents, up 1.4% for the week and the contract’s highest settlement since $12.93 1/2 on Sept. 29. January soymeal surged $7.20 to $379.50 per ton, up 3.4% for the week and the highest close since July 2. January soyoil fell 77 points to 53.88 cents per pound. Soybeans were supported by concerns over dry conditions in South America, along with export business and soymeal strength. USDA today reported daily sales of 132,000 MT of soybeans for delivery to China and 33,000 MT of soybean oil to India, both during the 2021-22 marketing year.
Wheat: March SRW futures rose 4 1/2 cents to $7.75 per bushel, down 10 1/4 cents for the week and the third straight weekly decline. March HRW futures fell 6 1/4 cents to $8.10, up 4 1/2 cents for the week. March spring wheat fell 4 1/4 cents to $10.22 1/2, up 3/4 cent for the week. Concerns over tightening global wheat supplies and adverse weather in the U.S. Plains helped wheat prices bounce back from a slump to eight-week lows earlier this week. Also, Russia plans to set its wheat export quota at 8 MMT, marking a 1 MMT reduction from a previously planned level.
Cotton: March cotton futures fell 238 points to 107.30 cents per pound, still up 107 points on the week. Next week’s trading will likely be muted as traders even up positions ahead of the three-day Christmas weekend, with USDA’s next weekly export sales report Dec. 23 of some interest. The recent decline in prices triggered improved demand from export customers, but lack of shipping containers is a concern.
Cattle: February live cattle futures fell 62.5 cents to $136.425, down 1.2% on the week for the third consecutive weekly decline. January feeder cattle fell $2.325 to $160.25, down 2.8% on the week. Live cattle were pressured by expectations cash prices will continue to erode into next year. Live steers in five top U.S. feedlot areas averaged $137.18 this week, USDA reported, the second weekly drop since the average posted a 4 1/2-year high at $140.44 in early December. Choice cutout values rose 4 cents to an average of $263.01, down from $264.54 at the end of last week.
Hogs: February lean hog futures rose 45 cents to $80.80, up 22.5 cents on the week. Deferred contracts posted modest losses. Futures firmed this week amid growing confidence the cash market has established a seasonal low. The latest CME lean hog index rose 11 cents to $72.41, the highest since Nov. 24. Wholesale pork showed brief strength earlier this week, suggesting lower prices stirred fresh retail demand, but ended the week on a soft note. Cutout values fell $5.67 today to an average of $85.82, down from $86.19 at the end of last week and led by a drop of over $22 in hams.
