After the Bell | December 20, 2021
Corn: March corn futures fell 2 1/4 cents to $5.91. Given heavy risk-off trade in outside markets today, the pressure on corn futures could have been much worse. Strength in soybean and soymeal futures helped limit selling in the corn market, as did building dryness concerns in southern Brazil. USDA’s weekly export inspections for corn totaled 1.002 MMT (39.4 million bu.), up slightly from the previous week and at the high end of trade expectations.
Soybeans: March soybeans rose 6 1/4 cents to $12.94 3/4 today, the contract’s highest settlement since $12.98 1/2 on Sept. 29. March soybean meal rose $6.80 to $383.30 per ton, near a six-month high. March soybean oil fell 96 points to 53.01 cents per pound. Soybeans climbed on soymeal strength, export optimism and concerns persistent dryness in South America will harm yields. Southern Brazil will continue to get below-average precipitation for the next two weeks, World Weather Inc. said today.
Wheat: March SRW wheat futures rose 2 3/4 cents to $7.77 3/4, after falling as low as $7.57 3/4 earlier in the session. March HRW futures rose 3 1/4 cents to $8.13 1/4. March spring wheat fell 2 3/4 cents to $10.19 3/4. Wheat prices bounced back from early decline, supported by tight supplies of milling-quality grain worldwide and adverse conditions for winter crops in the U.S. Plains. Strength in the soybean and soymeal markets also supported wheat.
Cotton: March cotton futures fell 176 points to 105.54 cents per pound, the lowest settlement since 104.20 on Dec. 3. Cotton futures extended last Friday’s slide as growing concern over the Omicron coronavirus variant sent crude oil down sharply and U.S. stocks lower. The Covid resurgence has fostered concern over a potential global slowdown in economic activity that would suppress demand for raw commodities. Lower oil prices also make polyester, a substitute for cotton, less expensive.
Cattle: February live cattle fell 45 cents to $135.975, the contract’s lowest closing price since $135.85 on Nov. 4. March feeder cattle fell $1.20 to $160.50. Live cattle extended last week’s decline on expectations cash prices will continue to slide the rest of the year as packers scale back slaughter. Live steers averaged $137.19 last week, down $2.50 from the previous week and the second consecutive weekly decline. Choice cutout values dropped 63 cents today to an average of $262.38 on movement of 94 loads.
Hogs: February lean hogs fell $1.325 to $79.475 today and nearer the session low. Bearish outside markets spooked hog futures today, offsetting signs of further strength in cash fundamentals. Pork cutout values rose 67 cents today to $86.49, though hams fell $3.32. Movement totaled about 366 loads. The CME lean hog index dropped 8 cents to $72.33 but is still near a three-week high reached Dec. 15.
