After the Bell | July 8, 2021
Corn: July corn futures closed 14 1/2 cents lower at $6.38 and December futures fell 7 1/4 cents to $5.23 3/4, a six-week low, on expectations rainfall and milder temperatures across the Midwest will boost crop development into pollination. Two more weeks of favorable conditions are expected for much of the Midwest, World Weather Inc. said today. “Regular rounds of rain will occur through late next week, while a lack of excessive heat will continue for another week with some of the driest areas in the west-central and northwestern Corn Belt seeing improvements.” USDA’s weekly export sales report tomorrow is expected to show 2020-21 corn sales of -100,000 metric tons (MT) to 350,000 MT. Sales for 2021-22 are expected to range from 100,000 to 600,000 MT.
Soybeans: November soybeans closed down 7 3/4 cents at $13.19 1/2 a bushel. December soybean meal fell $2.40 to $362.50. December soybean oil futures lost 51 points to 59.18 cents. Bearish Corn Belt weather patterns remain on the front burner of the soybean and corn markets. “Weather in the heart of the U.S. Midwest will still be very good with sufficient moisture to carry on normal crop development without rain for two weeks,” World Weather reported today. USDA Thursday morning reported a daily sale of 122,200 MT of soymeal to Mexico for 2021-22. Friday morning’s USDA weekly export sales report (delayed by one day due to the holiday Monday) is expected to show U.S. soybean sales reductions of 100,000 MT to up 275,000 MT in the current marketing year, and sales of 200,000 to 500,000 in the 2021-22 marketing year.
Wheat: December SRW wheat slid 3 3/4 cents to $6.26 3/4 a bushel. December HRW gained 3 1/2 cents to $5.99 1/4. September spring wheat futures slipped 3 cents to $8.05. The prospect of rain and cooler temps over much of the Corn Belt kept the corn market sliding Thursday, which in turn tended to weigh upon wheat prices as well. Talk that some of that moisture might fall upon the Northern Plains appeared to depress spring wheat futures. Industry analysts anticipate a substantial reduction in U.S. wheat carry-out for the 2021-22 crop year in USDA’s July 12 Supply and Demand report, with forecasts averaging 711 million bushels, versus USDA’s June projection of 770 million bu.
Cotton: Cotton futures finished 75 to 77 points lower through the March contract. That was near midrange for the day. Cotton futures took pressure from slumping grain prices and a downturn in the stock market. West Texas weather remains generally favorable. After recent rains, a period of beneficial drier weather is expected during the next 10 days, according to World Weather Inc. Improved rainfall in West Texas over the past month may prompt USDA to raise its harvested acreage figure in the July 12 Supply & Demand Report, which it previously adjusted down to “reflect unfavorable moisture conditions.”
Hogs: August lean hogs fell 2.5 cents to $100.375 per hundredweight, while December hogs gained 40 cents to $78.125. Improving cash market fundamentals supported futures. Pork cutout values at midday rose $4.22, led by hams and loins, on movement of 158.21 loads. Today’s weighted cash hog five-day rolling average price reported by USDA was $109.10, up 57 cents. Today’s hog slaughter was estimated at 465,000 head, compared to 458,000 head last Thursday and 468,000 one year ago at this time. Pork prices are likely to remain stable through much of July due in part to seasonally low supplies. Hog traders are awaiting Friday morning’s weekly USDA export sales, report.
Cattle: August live cattle futures fell $1.325 to $119.275, the lowest close in nearly a month. August feeder cattle futures fell $1.675 to $157.325, with lesser declines in deferred months. Futures’ technical patterns continue to erode while typical summer doldrums are weighing on the boxed beef market, which this week fell to 2 1/2-month lows amid a lull in retail demand. Choice cutout values this morning averaged $284.14, down 76 cents from the previous day and the lowest since late April, with a reported load count of 68. Early today, live steers in five top feedlot regions ranged from $121 to $127.10, based on negotiated cash sales. By comparison, live steers averaged $123.89 last week.
