After the Bell | July 6, 2021

( )

Corn: December corn futures fell the 40-cent limit to settle at $5.39 3/4 a bushel, while July corn dropped 41 1/4 cents at $6.56. The daily limit expands to 60 cents tomorrow. “Rain makes grain” and that’s what’s in store for the majority of the Corn Belt over the next several days, and in plentiful amounts over much of the region. The rains and moderating temperatures are coming just as the majority of the U.S. corn crop is entering or will be in its critical pollination stage of growth. U.S. corn inspected for export in the latest reporting week totaled 1.24 million metric tons, above last week’s number. USDA’s latest weekly crop progress report today rated U.S. corn acreage 64% in “good” or “excellent” condition as of yesterday, unchanged from the previous week and in-line with analysts’ expectations. The crop was rated 71% good-to-excellent at this time in 2020.

Soybeans: Soybean futures finished 86 1/2 to 95 1/4 cents lower through the March contract, with November closing at $13.05 a bushel. Soymeal futures dropped around $25, while soyoil plunged 300-plus points in most contracts. Soybeans were caught up in the broad-based selloff in the commodity sector today as traders peeled off risk coming out of the extended holiday weekend. Funds were active on the short side of the market in the soy complex today, liquidating long positions and likely adding new shorts. Weather forecasts call for general, soaking rains across much of the Midwest over the next week to 10 days. USDA’s weekly crop progress report today rated 59% of U.S. soybean acreage good-to-excellent condition at the start of this week, down from 60% last week and down from 71% a year ago. Analysts expected the good-to-excellent rating to hold unchanged.

Wheat: Wheat futures dropped sharply to three-month lows, with September SRW down 26 3/4 cents at $6.26 and September HRW futures down 35 1/2 cents at $5.83 3/4. September spring wheat fell 45 1/2 cents to $7.93 1/4. Wheat markets joined a broad grain market selloff sparked by expectations rain this week will boost corn and soybean crops in the Midwest. Some rainfall was reported in the Northern Plains and more is forecast this week, potentially providing some relief to the parched spring crop. Expected rains over the coming week “will be enough for some soil moisture improvement,” World Weather Inc. said in a report today. After today’s close, USDA reported that as of yesterday, the winter wheat crop was 45% harvested, up from 33% the previous week but trailing the average of 53% for the previous five years. Spring wheat continued to deteriorate. USDA rated the 16% of the crop good-to-excellent, down from 20% the previous week and about 3 percentage points worse than expected.

Cotton: December cotton futures rose 30 points to 87.40 cents per pound, after earlier rising to the highest intraday price in over four months. Cotton futures opened today’s trading session strong amid weather concerns in key growing regions but tumbled amid strength in the dollar and a steep selloff in corn and soybean markets. West Texas recently received rain, and Tropical Storm Elsa was expected to bring more rain to already waterlogged areas in Georgia. Longer-term forecasts appear more favorable for cotton acreage. Less rain, more sunshine and warmer temperatures will improve conditions for cotton and other crops in West Texas, according to World Weather Inc. USDA today said it rated 52% of the U.S. cotton crop good-to-excellent as of yesterday, up from 51% the previous week.

Hogs: July hog futures gained $1.275 to $109.925 per hundredweight and most-active August surged $2.125 to $102.35. Hog and pork supplies have reached some of their lowest levels of the year, with last week’s holiday-truncated slaughter total of 2.282 million head 3.3% below the week-prior figure. A short-term decline in supplies is supportive for hog and pork values. While the CME Lean Hog Index has continued its seasonal slide lately, the preliminary figure for last Friday, at $110.77, came in just 49 cents below the previous reading. Meanwhile, seemingly improved demand may be helping support pork cutout values, with the midday reading of $114.43 rising 76 cents from last Friday.

Cattle: August live cattle closed up 40 cents at $122.40 per hundredweight and August feeder cattle closed up $3.575 at $160.625 today, the highest close in nearly three months. Feeders led the fats today as corn futures plunged limit-down. Cattle markets may continue to look to corn for some direction this week. Cash cattle prices last week averaged $123.89 in the top five markets, down $1.58 from the previous week. We expect a weaker tone in the cash cattle market trade this week. Choice cutout value at noon today was up $2.90 at $288.34.

 

Latest News

H&P Report negative compared to pre-report expectations
H&P Report negative compared to pre-report expectations

Nearly every category topped the average pre-report estimates.

After the Bell | March 28, 2024
After the Bell | March 28, 2024

After the Bell | March 28, 2024

Pro Farmer's Daily Advice Monitor
Pro Farmer's Daily Advice Monitor

Pro Farmer editors provide daily updates on advice, including if now is a good time to catch up on cash sales.

PF Report Reaction: Bullish USDA data for corn
PF Report Reaction: Bullish USDA data for corn

Corn planting intentions and March 1 stocks came in lower than expected.

Report Snapshot: USDA shows lighter-than-expected corn acres and stocks
Report Snapshot: USDA shows lighter-than-expected corn acres and stocks

USDA reported corn acres of 90.036 million acres for 2024 and March 1 stocks of 8.347 billion bu., both well below trade estimates. Soybean acres were slightly lower than expectations, while stocks were higher.