After the Bell | February 7, 2022
Corn: March corn futures rose 14 3/4 cents to $6.35 1/4, the highest closing price for a nearby contract since mid-July of last year. December futures rose 7 1/4 cents to $5.81, after posting a contract high at $5.82. Corn futures rose for a second straight session behind sharp gains in the soybean market. USDA is widely expected to lower its production forecasts for Argentina and Brazil in its Supply and Demand Report on Wednesday, though it’s unlikely the numbers will drop as low as some private consultants project. Weekly USDA export inspections today were within trade expectations, but U.S. exports continue to lag last year’s levels. USDA reported 1.053 MMT (41.5 million bu.) of corn inspected for export during the week ended Feb. 3, up from 1.036 MMT the previous week.
Soybeans: March soybean futures gained 28 1/4 cents to $15.81 3/4, the highest close for a nearby contract since June 4. March soymeal rose $8.90 to $452.80. March soyoil slipped 20 points to 65.34 cents. Soybean futures surged amid ongoing expectations drought-slashed South American crops will push more export business to the U.S. Weekend rainfall was disappointing across areas of central and northern Argentina, Paraguay and southern Brazil. Forecasts signal mostly dry conditions will be seen across these areas the next 10 days to two weeks.
Wheat: March SRW wheat rose 5 1/2 cents to $7.68 3/4. March HRW wheat rose 6 cents to $7.91 3/4. March spring wheat rose 8 1/4 cents to $9.21 1/4. Expanding drought in the U.S. Plains HRW belt and Russia-Ukraine tensions remain supportive factors for wheat futures, but the market appears to sense a Russian invasion is not imminent. USDA reported 417,750 MT of wheat inspected for export during the week ended Feb. 3, up from 376,524 MT the previous week and at the high end of market expectations.
Cotton: March cotton futures fell 117 points to 125.57 cents per pound, the contract’s lowest settlement since Jan. 28. May futures fell 99 points to 123.00 cents. Cotton futures fell to the lowest levels in over a week as traders rolled positions from the March contract to May. Price action was otherwise sideways ahead of USDA’s Feb. 9 Supply and Demand report, which is expected to show a slight increase in U.S. production for the 2021-22 marketing year and slight decreases in U.S. exports and in U.S. and global ending stocks.
Cattle: April live cattle fell 47.5 cents to $146.40 after reaching a contract high at $147.375. March feeder cattle fell $1.075 to $165.025. Feeder cattle were pressured by strong gains in the corn market. Overall price action was light and choppy in live cattle futures amid conflicting influences from feeder cattle and lean hog futures. Choppy trade may continue traders wait for the cash cattle trade to develop. Live steers averaged $139.76 last week, up from the previous week’s average of $136.95. Choice cutout values fell 85 cents today to an average of $278.96, a four-week low. Movement was light at 80 loads.
Hogs: April lean hogs rose $1.20 at $101.275 after hitting a fresh contract high at $102.85. February futures rose 67.5 cents to $87.70. Strong cash market fundamentals and bullish charts continue to draw speculative money flow to the long side of hog futures. The CME lean hog index has reached the highest level since mid-October and is projected to gain another $1.57 to $85.87 tomorrow. Pork cutout values rose 78 cents today to $98.19, matching a two-month high reached Jan. 27. Movement totaled 337 loads.
