Corn: March corn rose 4 3/4 cents to $6.21, the contract’s highest close since $6.22 on June 10. December futures rose 2 1/4 cents to $5.67 1/2 after posting a contract high at $5.67 3/4. Corn futures closed at a 7 1/2-month high behind spillover from rallying wheat. Earlier today, USDA reported 1.116 MMT (43.9 million bu.) of corn inspected for export during the week ended Jan. 20, down from 1.237 MMT the previous week and within expectations. Corn inspections are running 13% under last year’s levels and need to average 46.1 million bu. per week the remainder of 2021-22 to hit USDA’s export forecast of 2.425 billion bushels. Seasonally, corn exports should increase.
Soybeans: March soybeans dropped 11 1/4 cents to $14.03. March soymeal rose $1.20 to $393.90. March soyoil fell 103 points to 61.97 points. Soybean futures were pressured by weekend rainfall across Argentina and forecasts calling for improved rain chances in southern Brazil the next 10 days or so. While crops in both areas have been hurt by heat and dryness, the rains gave traders a reason to pressure soybean futures. Whether crops will see any meaningful improvement from the rains is still to be determined. Soybean export inspections totaled 47.7 million bu. for the week ended Jan. 20, at the low end of pre-report expectations.
Wheat: March SRW wheat rose 20 1/2 cents to $8.00 1/2, the contract’s highest close since Dec. 27. March HRW wheat rose 24 3/4 cents to $8.18, the highest close since Dec. 29. March spring wheat closed jumped 12 1/2 cents to $9.48 1/2. Winter wheat futures surged to four-week highs on carryover technical momentum from last week’s rally and concerns a potential Russia invasion of Ukraine may disrupt the global wheat trade. Wheat prices climbed despite weakness in U.S. stocks and crude oil and strength in the dollar in a broader “risk-off” day in the global marketplace. Potential damage from cold weather is a concern for winter wheat.
Cotton: March cotton futures fell 37 points to 120.38 cents per pound, the contract’s lowest closing price since Jan. 14. Cotton futures fell for the third consecutive day on pressure from a stronger U.S. dollar and continued weakness in U.S. stocks. The S&P 500 index plunged as much as 4.0% to the lowest levels since mid-June amid escalating tension between Russia and the West over Ukraine. The U.S. dollar index rose to a two-week high. Other bearish influences for cotton today included a drop in crude oil and expectations the Federal Reserve will tighten interest rates aggressively to control inflation.
Cattle: April live cattle fell $2.025 to $140.075, the lowest close since early November. March feeders fell $2.05 to $161.25. Fundamental pressure stemmed from larger than expected numbers in last Friday’s USDA Cattle on Feed Report. Additional pressure arose from broad weakness in outside markets as the stock market faced strong selling, the U.S. dollar index firmed and the commodity sector weakened. Last week’s cash cattle price averaged $137.50, up 89 cents from the previous week. Active followthrough selling in futures could lead to weaker cash trade this week. Choice cutout values extended recent strength, rising $1.09 to $293.50, the highest since Sept. 30. Movement was relatively slow at 80 loads.
Hogs: April lean hogs rose 37.5 cents to $95.325, a lifetime-high close for the third straight session. Lean hog futures rose for the sixth consecutive session as traders shrugged off weakness in outside markets and focused on stronger cash fundamentals. Pork cutout values rose $2.37 today to $95.66, as a gain of nearly $11 in bellies helped lift the average to a 2 1/2-month high. Movement totaled 342 loads. The CME lean hog index firmed 72 cents today, to $77.51, the highest since Nov. 10, and will be up another 81 cents tomorrow.