After the Bell | January 10, 2022

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Corn: March corn futures settled 7 cents lower at $5.99 3/4 after falling as low as $5.96 1/4. December futures fell 3/4 cent to $5.57. Corn futures fell under profit-taking pressure following last week's gains and spillover from sharp declines in the soy complex. South American weather remains a key market factor, with little rain and hot temperatures expected from Paraguay to Brazil’s Rio Grande do Sul and western Parana through Saturday. But there are increased rain chances in the outlook for next week. USDA is expected to revise lower its projections for South American crop production in a report Wednesday.

Soybeans: March soybeans fell 25 1/2 cents to $13.84 3/4. March soymeal fell $8.70 to $416.30 per ton, while March soyoil fell 75 points to 58.03 cents per pound. Soybean futures fell under profit-taking pressure following the market’s climb to seven-month highs last week. Forecasts for greater rainfall prospects in dry areas of South America also weighed on prices. Next weekend may bring a shift in the weather pattern in Brazil, World Weather Inc. said. Rain expected from Jan. 16-19 “is not likely to be heavy in many areas, but at least some relief from dryness should occur and crops that have not been too badly harmed by dryness will respond to the moisture,” the forecaster said.

Wheat: March SRW wheat firmed 3 1/2 cents to $7.62, while March HRW futures rose 3 1/4 cents to $7.78 1/4. March spring wheat fell 9 cents to $9.14 1/4. Winter wheat futures were supported by corrective buying as traders covered some short positions and unwound long corn/short wheat spreads. More corrective trade is possible ahead of USDA’s reports Wednesday. USDA’s weekly export inspections provided another reminder of paltry demand for U.S. wheat. For the week ended Jan. 6, wheat inspections totaled 233,159 MT (8.6 million bu.), up slightly from the previous week.

Cotton: March cotton futures rose 10 points to 115.22 cents per pound, while deferred contracts gained 19 to 76 points. Cotton futures firmed modestly in sideways trade ahead of USDA reports. The market shrugged off a stronger U.S. dollar and weakness in U.S. stocks. USDA is expected to slightly lower its estimate for the 2021-22 U.S. cotton crop to 18.24 million bales, down from 18.28 million in a December forecast, based on a Bloomberg survey of analysts. U.S. exports may be reduced to 15.39 million bales from 15.5 million.

Cattle: February live cattle fell $1.075 to $136.25, a three-week closing low, while March feeder cattle fell $1.325 to $165.35. Cattle futures extended last week’s declines on expectations for further cash market weakness amid uncertainty over how much production may be lost to Covid absences at U.S. beef plants. Last week’s average cash price of $138.41 dropped $1.18 from the previous week and traders expect generally weaker prices again this week. Choice cutout values rose $4.22 today to $276.04, the highest daily average since Nov. 29. Movement totaled 107 loads.

Hogs: February lean hogs fell $1.275 to $78.375, the lowest settlement since Dec. 9. April futures dropped $2.65 to $84.70. Hog futures extended last week’s slide amid chart-driven selling and a “risk-off” day in the general marketplace, despite signs of strengthening cash fundamentals. Pork cutout values rose 52 cents today to an average of $86.42 on movement of nearly 415 loads. The CME lean hog index will be up 97 cents to $74.70 tomorrow, the highest since Nov. 17.


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