After the Bell | December 28, 2021
Corn: March corn futures fell 10 cents to $6.04 3/4, after rising overnight to 6.17 3/4, the highest intraday price since $6.25 on June 11. Profit-taking weighed on prices despite ongoing concern over dryness in South America. Large speculators hold a large net long position in corn and may be booking profits as trade thins out this week. Dry conditions are trimming yield potential in Argentina and Brazil. Crop Consultant Michael Cordonnier cut his South American crop estimates for a second week in a row.
Soybeans: March soybean futures fell 3 1/2 cents to $13.68, after earlier rising to $13.84 1/2, the contract’s highest intraday price since $13.99 1/2 on July 19. March soybean meal rose 80 cents to $409.10, a lifetime-high close for the second straight day. March soybean oil fell 18 points to 56.67 cents per pound. Concerns about the size of the forthcoming South American soybean harvest lifted soybean futures before slumping wheat futures pulled grain markets lower.
Wheat: March SRW wheat fell 20 1/2 cents to $7.83 1/2, the contract’s lowest settlement since Dec. 20. March HRW wheat fell 25 1/4 cents to $8.21 3/4. March spring wheat fell 25 cents to $9.99 1/2, the lowest closing price since $9.96 3/4 on Nov. 8. Futures fell on profit-taking fueled by a bearish backdrop of weak exports and U.S. wheat’s lack of competitiveness on the global market. Large speculators recently increased their net short position in SRW wheat futures and options to a two-month high.
Cotton: March cotton futures fell 223 points to 110.05 cents per pound. Heavy profit-taking pressure hit futures after prices reached four-week highs yesterday. Weakness in grain, crude oil and U.S. stock markets also weighed on the cotton market. Cotton futures remain supported by elevated crude oil prices and strength in the U.S. economy.
Cattle: February live cattle futures rose 12.5 cents to $139.40 after earlier falling as low as $138.45. March feeder cattle rose $1.95 to $165.225. Live cattle rebounded from earlier weakness to post modest gains in light post-holiday trade. While an eroding cash market is limiting buying interest in futures, recent strength in wholesale beef prices suggests retailers are stepping up purchases for January promotions. Choice cutout values rose $1.54 today to an average of $264.48, the highest since Dec. 10. Movement totaled 112 loads.
Hogs: February lean hog futures fell $1.025 to $82.625. Hog futures recent upswing stalled somewhat as profit-taking pressured ag futures markets. February futures’ unusually large premium to the CME lean hog index, currently $11.465, may be limiting buyer interest. The next index is expected to rise 66 cents to $71.82 tomorrow, breaking a string of three straight declines. Pork cutout values rose 56 cents today to $86.89, despite declines in bellies and hams. Movement totaled nearly 341 loads.
