After the Bell | January 28, 2022
Corn: March corn rose 10 3/4 cents to $6.36, the contract’s highest close since $6.40 on May 7 and a gain of 19 3/4 cents for the week. December corn rose 2 3/4 cents to $5.69 1/2. Corn futures carry strong upside momentum into next week, and continued gains in crude oil futures, which reached the highest levels since late 2014 this week, could provide a further boost. Russia-Ukraine tensions will continue to be closely followed and South American weather remains in market focus. Southern Brazil received some rain relief this week, but the country’s first corn crop has already suffered damage due to drought or extended dryness.
Soybeans: March soybeans surged 21 3/4 cents to $14.70, a contract-high close for the third consecutive day and a gain of 55 3/4 cents for the week. March soybean meal rose $6.50 to $411.20 per ton, a gain of $18.50 for the week, and March soybean oil rose 93 points to 65.27 cents, the highest close for a nearby contract since Aug. 10. Soybean futures extended this week’s rally behind drought in South America and Malaysian palm oil’s rally to record highs. Any weekend weather shifts in South America, along with early harvest progress and results, have potential to move prices, and traders will watch for any additional export business after USDA reported a flurry of soybean sales today.
Wheat: March SRW wheat futures rose 9 1/4 cents to $7.86 1/4, up 6 1/4 cents for the week. March HRW futures rose 8 3/4 cents to $8.02 1/4, up 9 cents for the week. March spring wheat futures surged 19 3/4 cents to $9.20 1/4, up 15 3/4 cents for the week. Charts still favor wheat market bulls, suggesting more upside potential next week. A potential Russian invasion of Ukraine remains perhaps the largest near-term market factor and should limit selling interest. Ideas of a reduced risk of an invasion contributed to selling in wheat late this week.
Cotton: March cotton futures rallied 213 points to 123.76 cents per pound, after scoring a contract high at 125.60 cents. The contract gained 301 points this week, its eighth consecutive weekly gain. The U.S. dollar will be one key to cotton market direction next week. The U.S. dollar index hit an 19-month high earlier today before easing slightly, encouraging cotton buyers. Strong export demand, if sustained, may provide a further price boost. USDA yesterday reported net weekly U.S. export sales at 391,300 bales for 2021-22 and 106,800 bales for 2022-23, both robust figures considering elevated futures prices.
Cattle: April live cattle rose $1.475 to $143.00, up 90 cents for the week. March feeder cattle rose 12 1/2 cents to $159.625, down $3.675 for the week. USDA will release its semi-annual U.S. Cattle Inventory report after the close Monday, which may keep many traders sidelined. The report probably will reflect ongoing herd liquidation. This week’s slaughter was an estimated 643,000 head, up 1.1% over last week and 2.0% under the same week in 2021, indicating recent Covid-driven packing industry slowdowns may be fading. A late-week rebound in wholesale beef may have contributed to futures strength. Choice cutout values rose $1.31 today to $290.42, down from $292.41 at the end of last week. Movement was light at 77 loads. Live steers this week averaged $136.93 as of this morning, down from $137.50 last week.
Hogs: April lean hog futures rose 25 cents to $94.925, down 2.5 cents for the week. Strong near-term cash market fundamentals should continue to limit downside in futures next week. Pork cutout values fell $1.80 today to $96.39 as hams dropped over $15, though the average rose from $93.29 at the end of last week. Movement was relatively light at 248 loads. The latest CME lean hog index was up 55 cents to $79.75, the highest level since late October. The preliminary quote for the next index is $80.61, up 86 cents.
