After the Bell | January 19, 2022
Corn: March corn futures rose 11 cents to $6.10 1/2, the contract’s highest settlement since $6.14 3/4 on Dec. 27. Corn futures climbed to the highest levels in over three weeks on general commodity market strength and amid renewed inflation concern. Nymex crude oil surged to a seven-year high near $88 a barrel. Corn prices were also supported by ongoing concern over dry weather curbing crop potential in Brazil and Argentina.
Soybeans: March soybean futures surged 30 cents to $13.91 1/4. March soyoil jumped 168 points to 60.76 cents per pound. March soymeal climbed $8.2 to $398.30 per ton. The soy complex rebounded from yesterday’s losses in part on forecasts calling for a return of hot, dry weather to key South American crop areas, such as southern Brazil. Production prospects have already been scaled back by USDA and several private forecasters. USDA’s attache in Brazil lowered its estimate for the country’s soybean production to 136 MMT, saying drought in some regions and excessive rain in others has dampened prospects for a record crop.
Wheat: March SRW wheat soared 27 1/2 cents to $7.96 1/2, the contract’s highest closing price since $8.04 on Dec. 27. March HRW wheat rose 27 1/4 cents to $8.00, the highest close since $8.04 on Jan. 4. March spring wheat futures rose 32 3/4 cents to $9.39 3/4, the highest close since Jan. 5. Wheat futures rose sharply for the second day as concerns over a cold snap in the U.S. Plains and Russia potentially invading Ukraine triggered short covering and corrective buying. Both of the latter countries are major wheat exporters. Signs of improved export demand and general commodity market strength also supported wheat prices.
Cotton: March cotton futures surged 287 points to 123.95 cents per pound, the highest close for a nearby contract since July 2011, when prices topped 164.00 cents. Cotton futures extended a steep rally to decade-plus highs behind general commodity market strength and optimism over global demand. Nymex crude oil futures jumped over $1.00 to a seven-year high near $88 a barrel, while winter wheat futures climbed over 25 cents. Higher oil prices make polyester, a substitute for cotton, more expensive. The cotton market also continued to draw support from USDA’s recent cuts to U.S. and global production estimates.
Cattle: April live cattle rose $1.50 to $143.35, the highest closing price since $144.20 on Jan. 3. March feeder cattle rose 20 cents to $165.625. Live cattle futures gained support from general strength in the commodity sector and heightened inflation concerns, as well as from rising wholesale beef prices that indicate improved retailer demand. Choice cutout values rose $2.11 today to $291.60, the highest daily average since Oct. 1. Movement totaled 115 loads. Cash trade so far this week averaged $136.75, slightly firmer compared to last week’s average of $136.61.
Hogs: April lean hog futures surged $2.075 to $91.35, the contract’s highest close since $91.825 on June 10. Hog futures extended a steep rally, closing higher for the fourth day in the past five, on signs of strengthening cash fundamentals and retail demand. Pork cutout values jumped $8.26 today to $95.47, led by a gain of over $30 in primal hams. Movement totaled 387 loads. Today's cutout average is the highest since Nov. 11 and suggests retail demand has improved this year while supplies tightened in part due to Covid-related slaughter plant slowdowns.
