After the Bell | January 20, 2022

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Corn: March corn rose 1/2 cent to $6.11, while December futures dropped 2 1/2 cents to $5.62 1/4. Today’ corn futures performance was disappointing for market bulls considering gains of 30-plus cents in soybeans. Bulls failed to muster any sustained followthrough buying interest from yesterday’s gains, despite the strong pull from the soy complex, though that did help limit seller interest. Much of the fundamental focus in the corn market remains on South American weather, though traders have been much more responsive in the soybean market. Tomorrow’s USDA export sales report is expected to show net U.S. corn sales at 500,000 MT to 1 MMT for the week ended Jan. 13.

Soybeans: March soybeans soared 34 1/2 cents to $14.25 3/4, the contract’s highest closing price since $14.33 on June 10. March soybean meal rose $2.50 to $400.80. March soybean oil jumped 212 points to 62.88 cents, a three-month closing high. Soybean futures extended yesterday’s rally and closed at a seven-month high on technical strength, concern over dryness in South America and export optimism. Soyoil futures surged in the wake of a record close in Malaysian palm oil prices. USDA is expected to report weekly net U.S. soybean export sales ranging from 600,000 MT to 1.2 MMT for 2021-22.

Wheat: March SRW wheat fell 6 1/4 cents to $7.90 1/4, after earlier rising to a three-week high at $8.02 3/4. March HRW wheat fell 3 1/2 cents to $7.96 1/2. March spring wheat rose 5 cents to $9.44 3/4, the highest close since $9.48 1/4 Jan. 5. Winter wheat futures saw a corrective, profit-taking setback following sharp gains the previous two days. Prices continued to find support from concerns over a potential Russia invasion of Ukraine and implications for global wheat trade. USDA’s export sales report is expected to show net U.S. wheat sales ranging from 175,000 to 400,000 MT.

Cotton: March cotton futures fell 108 points to 122.87 cents per pound. Cotton futures fell for the first session in four amid corrective pressure and profit taking following the surge to a 10-year high yesterday. A two-week slide in the U.S. stock market dampened buyers’ enthusiasm, though crude oil’s rally to seven-year highs provided underlying support.

Cattle: April live cattle futures fell 17.5 cents to $143.175, while March feeder cattle fell 67.5 cents to $164.95. Live cattle futures fell in a mild corrective setback from yesterday’s gains, but declines were limited by signs the cash market is establishing a bottom. Live steers so far this week averaged $136.92, slightly firmer compared to last week’s average of $136.49, USDA numbers showed. Choice cutout values rose another $1.38 today to $292.98, the highest daily average since Sept. 30. Movement totaled 129 loads.

Hogs: April lean hog futures soared $2.65 to $94.00, a lifetime-high close for the contract. February futures rose $2.625 to $84.925, the highest close for a nearby contract since mid-October. Hog futures extended a week-long rally amid growing confidence the Covid-related disruptions that hampered pork processors are fading, even though slaughter rates this week still lag levels from last week and last year. Pork cutout values fell $3.23 today to $92.24 as primal hams dropped nearly $26. Movement was relatively light at about 296 loads. 

 

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