After the Bell | December 21, 2021
Corn: March corn futures rose 7 1/4 cents to $5.98 1/4, the contract’s highest settlement since $6.16 on June 11. Corn futures closed at the highest levels in over six months on support from rallying soybeans and wheat and concerns persistent dryness in parts of South America will trim crop potential. Southern Brazil and neighboring areas of Paraguay will continue to receive below-average precipitation for the next two weeks as La Nina prevails, World Weather Inc. said today
Soybeans: March soybeans rose 18 cents to $13.12 3/4, the highest closing price since Aug. 30. March soymeal rose $7.20 to $390.50 per ton, the highest close since mid-June. March soyoil rose 93 points to 53.94 cents a pound. The soybean market rode supportive outside markets after holding up in the face of yesterday’s risk-off trade. Dry weather in South America provided fundamental support. Crop Consultant Dr. Michael Cordonnier cut most of his South American crop forecasts, citing expanding dryness as a building concern across southern Brazil, northern and eastern Argentina and Paraguay.
Wheat: March SRW wheat rose 21 1/4 cents to $7.99. March HRW wheat rose 28 1/4 cents to $8.41 1/2, the highest closing price since Dec. 2. March spring wheat rose 5 3/4 cents to $10.25 1/2. Wheat futures climbed to two-week highs on short covering and bargain hunting in the wake of the market’s recent drop to eight-week lows. Stressful weather conditions for U.S. winter wheat crops are expected to continue, with very warm weather and even some record highs expected in the Plains states.
Cotton: March cotton rose 173 points to 107.27 cents per pound. A solid rebound in the U.S. stock market and in crude oil futures boosted cotton futures. Look for cotton traders to continue to look to U.S. stocks and crude oil for price direction for the near-term. If risk aversion returns to the general marketplace, sellers in the cotton market would likely be out in force again.
Cattle: February live cattle rose 95 cents to $136.925, while March feeder cattle rose $1.325 to $161.825. Live cattle posted a corrective bounce following two days of losses, supported by broader strength in commodity markets. Cattle futures upside likely will remain limited because of eroding cash prices and soft beef demand. Early-week cash trade was reported at $135, down about $2.00 from last week’s average. Choice cutout values fell 99 cents today to an average of $261.39, while Select fell 75 cents to $249.92. Movement totaled 116 loads.
Hogs: February lean hogs rose $2.95 to $82.425, the highest settlement since $84.25 on Nov. 24. Hog futures rebounded from yesterday’s losses and ended near a four-week high amid strengthening cash. The next CME lean hog index is expected to rise 9 cents to $73.02, the highest since Nov. 22. USDA’s Hogs and Pigs Report Dec. 23 is expected to show the hog herd shrank nearly 3.0% from last year. Pork cutout values fell $1.58 today to $84.91, near a two-week low, on movement of about 295 loads.