After the Bell | January 6, 2022
Corn: March corn futures rose 1 1/2 cents to $6.03 3/4, after falling as low as $5.96 earlier in the session. Corn futures recovered from initial weakness amid ongoing concern over adverse weather curbing production prospects in South America. Little to no rain is expected for Paraguay and southern Brazil through at least the next 10 days and with warmer temperatures returning next week, “the region will see steady increases in crop stress and declining yield potentials,” World Weather said. Early today, USDA reported net U.S. corn sales of 256,100 MT for the week ended Dec. 30, down 80% from the previous week and down 81% from the average for the previous four weeks.
Soybeans: March soybeans fell 7 1/2 cents to $13.87 1/4. March soybean meal fell $2.40 to $411.00 per ton. March soybean oil fell 54 points to 58.90 cents per pound. Profit-taking and disappointing weekly USDA export numbers weighed on the soy complex. Net U.S. soybean sales were a marketing-year low at 382,700 MT, down 27% from the previous week and down 63% from the average for the previous four weeks, USDA reported. Also today, USDA reported a sale of 102,000 MT of U.S. soybeans for delivery to Mexico during the 2021-22 marketing year.
Wheat: March SRW futures dropped 14 3/4 cents to $7.46, the lowest settlement since $7.36 3/4 on Oct. 14. March HRW futures fell 18 1/2 cents to $7.68 1/2. March spring wheat fell 24 1/2 cents to $9.23 3/4, the lowest close since Oct. 5. Tepid exports continued to burden the wheat market. Net weekly U.S. export sales fell to a marketing-year low at 48,600 MT and exports totaled 210,900 MT, USDA reported today. Total wheat export commitments (exports plus outstanding sales) are 23% behind year-ago and nearly 19% behind the five-year average.
Cotton: March cotton futures fell 156 points to 114.72 cents and nearer the session low. Cotton futures fell under profit-taking following recent gains and disappointing export numbers. USDA reported net U.S. cotton sales of 143,200 running bales (RB) for the week ended Dec. 30, down 26% from the previous week and down 48% from the prior four-week average. Increases were primarily for China (47,000 RB) and Pakistan (20,800 RB).
Cattle: February live cattle futures rose 10 cents to $137.35, after falling earlier to $136.375, the lowest intraday price since $135.95 on Dec. 21. March feeder cattle rose $1.10 to $167.275. Live cattle futures gained for the first day in the past six as continued strength in the wholesale beef market helped the market find support despite eroding cash values. Choice cutout values rose $1.63 today to $268.56, the highest daily average since Dec. 6, while Select gained $1.03 to $260.64. The wholesale market’s gradual climb over the past month suggests retail demand is improving. Live steers averaged $138.78 so far this week, down from last week's average of $139.59, USDA reported.
Hogs: February lean hog futures rose 67.5 cents to $82.95, the highest close since Dec. 29. Hog futures sustained yesterday’s strong rebound, with February and April contracts leading gains amid strengthening cash fundamentals. The next CME lean hog index is expected to drop 30 cents, to $73.57, but the benchmark remains near the highest levels since mid-November. Pork cutout values rose $3.64 today to $89.56, led by gains of nearly $10 in hams and $12 in loins. Movement was strong at over 411 loads.