After the Bell | January 12, 2022

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Corn: March corn futures fell 2 cents to $5.99 while December futures rose 3/4 cent to $5.58 1/4. USDA’s monthly Supply and Demand update and Crop Production report had limited impact on futures. The agency’s final 2021 U.S. corn production estimate increased 53 million bu. from November to 15.115 billion bu., 46 million bu. more than traders expected. Estimated corn carryover for 2021-22 was raised 47 million bu. from December, about 68 million bu. above the average pre-report trade estimate.

Soybeans: March soybeans rose 12 3/4 cents to $13.99 1/4. March soybean meal rose $3.10 to $416.20 per ton and March soybean oil rose 50 points to 59.37 cents per pound, the highest close in a week. Soybean futures rose after USDA reported larger-than-expected cuts to its South American crop projections. USDA lowered its forecast for Brazil’s soybean crop by 5 MMT to 139.00 MMT, compared to expectations for a reduction closer to 2.4 MMT. Argentina's estimated soybean crop was lowered 3 MMT to 46.50 MMT, more than double expectations for a drop of about 1.4 MMT.

Wheat: March SRW wheat futures fell 12 1/2 cents to $7.57 3/4. March HRW wheat fell 13 3/4 cents to $7.78. March spring wheat fell 7 3/4 cents to $9.20 1/2. Wheat futures declined following USDA’s higher than expected U.S. plantings estimates in its Winter Wheat seedings report. USDA estimated all U.S. winter wheat seedings for the 2022 harvest at 34.397 million acres, up 749,000 acres from last year and 142,000 acres above the average pre-report estimate. The increase was driven largely by higher than anticipated SRW plantings at 7.07 million acres, up 6.648 million acres in 2021. Estimated HRW plantings, at 23.8 million acres, were below trade expectations.

Cotton: March cotton futures surged 162 points, or 1.3%, to 117.64 cents per pound, the highest close in the contract’s lifetime. March futures also posted a contract high at 118.99 cents. Cotton futures soared after USDA made larger-than-expected cuts to its U.S. production and ending stocks estimates for the 2021-22 crop year. In its monthly Supply and Demand update, USDA reduced its projection for U.S. production by 660,000 bales, to 17.62 million bales, below expectations for a drop to about 18.24 million. Projected ending stocks were lowered 200,000 bales, to 3.20 million bales.

Cattle: February live cattle futures fell $1.10 to $136.575, while March feeder cattle tumbled $1.325 to $165.025. Weakness in the cash market continued to burden live cattle futures. Cash prices averaged $136.49 so far this week, down nearly $2.00 from last week's average. Wholesale beef prices extended a recent rally, with Choice cutout values rising $1.71 today to $279.93, the highest since Nov. 26 and up over $19.00 from a mid-December low at $260.26. Movement remained strong at 152 loads.

Hogs: February lean hog futures rose $1.00 to $78.85, the contract’s first gain in four sessions. Hog futures bounced back from sharp losses the previous three days amid signs of strengthening cash fundamentals and expectations for tighter supplies. The preliminary quote for the next CME lean hog index fell 7 cents to $75.06, still near the highest levels since mid-November. Pork cutout values rose $2.84 today to an average of $84.46, led by gains of over $9.00 in both bellies and hams. Movement totaled 309 loads, the lowest daily figure so far this year.


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