Corn: March corn futures rose 5 1/4 cents to $5.76 3/4, up from a three-week closing low Nov. 30. The most-active contract is still down from $5.91 3/4 at the end of last week. Corn futures gained for a second straight day behind spillover support from sharp gains in the wheat market and continued corrective gains from an early-week selloff. The wheat market’s strength combined with strong demand from ethanol producers has helped offset lagging corn exports. Early today, USDA reported net U.S. corn sales totaling 1.02 MMT for the week ended Nov. 25, down 29% from the previous week and down 12% from the average for the previous four weeks. Sales were within trade expectations that ranged between 600,000 MT and 1.25 MMT. Late yesterday, USDA’s monthly Grain Crushings report showed 469.3 million bu. of corn were used to make ethanol during October, up 15% from September and up 8.1% from the same month in 2020.
Soybeans: January soybeans rose cents to $12.44 1/4 and nearer the session high. January soybean meal fell 30 cents to $348.80. January soybean oil rose 116 points to 56.34 cents per pound. Soybean futures gained on short-covering and fresh export demand in the wake of early-week losses, with support also stemming from strength in U.S. stocks and crude oil. USDA today reported soybean sales of 130,000 MT to China and 164,100 MT to “unknown destinations” for 2021-22. The sales confirmation came after China reportedly booked three to four cargoes of U.S. soybeans from the Gulf for shipment in December and January on this week’s sharp price break. China also bought some soybeans from Brazil this week. China has around 85% of its estimated December soybean purchases booked, along with about half of its January needs, according to Reuters. Also today, USDA reported net U.S. soybean sales for the week ended Nov. 25 totaling 1.063 MMT, down 32% from the previous week and down 29% from the four-week average. China was top buyer at 657,100 MT, including 462,000 MT switched from “unknown destinations.”
Wheat: March SRW wheat futures surged 24 1/2 cents to $8.15, while March HRW futures jumped 23 cents to $8.42 1/4. March spring wheat rose 22 1/2 cents to $10.42 1/4. Wheat futures soared after the price slump earlier this week stirred fresh demand on global export markets, fueling an already bullish market mentality tied to shrinking supplies of food-quality wheat. The state grain buyer for Saudi Arabia, for example, said today it’s seeking 535,000 MT of wheat for delivery May-July 2022, Reuters reported. Jordan, Tunisia and Japan were also reported to be seeking or have recently purchased wheat. Rising demand and tight worldwide supplies overshadowed poor U.S. export sales, underscoring the U.S. wheat market’s uncompetitive pricing structure compared with other global producers. USDA today reported net weekly U.S. wheat sales of 79,900 MT for the week ended Nov. 25, a marketing-year low. The sales were down 86% from the previous week and down 80% from the prior four-week average.
Cotton: March cotton futures fell 49 points to 103.70 cents per pound, the lowest closing price since 101.84 cents on Oct. 13. Continued long liquidation amid beliefs the cotton market has established a top sent March futures to seven-week lows. Strength in U.S. stocks and other major commodities, such as crude oil and wheat, helped limit downside in cotton. But the cotton market remains at elevated levels, raising concern about high prices curbing demand. Early today, USDA reported net U.S. cotton net sales of 374,900 running bales (RB) for the week ended Nov. 25, up 90% from the previous week and up “noticeably” from the average for the previous four weeks. Increases were primarily for Vietnam and China. However, exports of 71,400 RB were down 29% from the four-week average.
Cattle: December live cattle firmed $1.65 to $137.65, while February futures gained 97.5 cents to $139.575. January feeder cattle finished 5 cents lower at $165.775. Live cattle futures were supported by firmer cash cattle and stronger exports. Packers raised bids to $140 and then to $142 in the Southern Plains, with some feedlots reportedly moving cattle at the later level. Still others held out for even higher prices. December live cattle futures finished at a large discount to cash, suggesting traders are willing to take a wait-and-see approach. If those higher cash prices are confirmed, it would open additional upside potential in futures tomorrow. Late today, USDA reported live steers in top feedlot areas at an average of $137.87. Weekly U.S. beef export sales at 21,600 MT were up 12% from the previous week and 5% from the four-week average, USDA reported. South Korea was the lead buyer, but China was second on the list at 3,300 MT. Choice cutout values rose $1.80 today to an average of $272.02, up from a four-month low yesterday, on strong movement of 174 loads.
Hogs: February lean hogs rose $1.875 to $82.00, the highest closing price since Nov. 24. Futures gained on a combination of resurgent wholesale pork prices, firming in the CME lean hog index and stronger exports. Wholesale market weakness had hung over the hog market lately, outweighing the bullish implications of an outlook for a 6% year-over-year reduction in winter hog supplies. But a sharp jump in pork cutout values today suggested prices may have fallen enough to prompt a pick-up in demand. Carcass cutout values rose $5.72 today to an average of $88.09, led by a gain of over $17 in hams. Yesterday, cutout values sank to a 10-month low. The recent rally in December futures to a significant premium over the CME lean hog Index may have encouraged market bulls. The preliminary index for tomorrow is up 59 cents to $70.86, about $3.59 under December futures. The December contract’s level implies the index will rise another $4.13 over the next 11 days.
Meatpackers slaughtered an estimated 1.923 million head during the first three days this week, up from 1.428 million for the same period during last week’s holiday-shortened schedule, according to USDA.