After the Bell | December 27, 2021
Corn: March corn rose 9 cents to $6.14 3/4, the contract’s highest settlement since $6.16 on June 11. Corn futures were supported by strong gains in the soy complex and an overall “risk-on” trade in the broad marketplace coming out of the Christmas holiday weekend. Dryness concerns in southern Brazil and Argentina also supported prices. USDA’s weekly corn export inspections totaled 719,031 MT for the week ended Dec. 23, down from 1.002 MMT from the previous week.
Soybeans: March soybeans rallied 30 3/4 cents to $13.71 1/2, the highest closing price since $13.71 3/4 on July 29. March soymeal surged $7.80 to $408.30, the highest close in the life of the contract. March soyoil rose 143 points to 56.85 cents per pound, a three-week high. Dry weather in South America, strength in crude oil and bullish technicals drove gains in the soy complex. USDA reported 1.577 MMT of soybeans inspected for export during the week ended Dec. 23, down from 1.89 MMT the previous week.
Wheat: March SRW wheat futures fell 10 3/4 cents to $8.04, after earlier rising to $8.24, the highest intraday price since $8.24 1/4 on Nov. 30. March HRW futures fell 14 1/2 cents to $8.47 and March spring wheat futures fell 8 cents to $10.24 1/2. Wheat futures fell under profit-taking and technical selling after rising earlier today to four-week highs behind spillover from corn and soybean market gains. While global supplies are tightening, U.S. wheat is uncompetitively price and exports remain sluggish.
Cotton: March cotton futures surged 316 points to 112.28 cents per pound, the highest settlement since 115.78 cents on Nov. 24. Cotton futures were supported from strength in U.S. stocks and crude oil and optimism over the economy. The S&P 500 index rose over 1.0% to a record high, boosted by strong retail sales, while Nymex crude futures rallied to the highest levels in a month. Holiday sales jumped 8.5% in 2021 from last year, the fastest pace in 17 years, according to Mastercard data.
Cattle: February live cattle futures fell 35 cents to $139.275. March feeder cattle fell 47.5 cents to $163.275. Live cattle futures were initially supported by spillover strength from the hog market and a generally firmer tone in risk-based markets before buying interest dissipated amid expectations for further weakness in cash markets. Last week’s cash trade averaged $135.64, down $1.55 from the previous week. A steady to weaker cash tone is likely again this week. Choice cutout values rose $1.65 to an average of $264.59, while Select rose $2.23. Movement totaled 116 loads.
Hogs: February lean hogs rose 42.5 cents to $83.65, the highest closing price since $84.25 on Nov. 24. Hog futures were supported by USDA’s latest Hogs & Pigs Report, which showed the U.S. hog herd down a larger than expected 4.0% from a year ago. Pork cutout values fell $5.14 today to an average of $86.33, led by a decline of nearly $20 in hams. Movement was strong at 370 loads. Tomorrow's CME lean hog index is expected to drop 55 cents to $71.12, the third straight daily decline and the lowest reading since Dec. 8.
