After the Bell | June 27, 2022
Corn: December corn futures fell 21 cents to $6.53, the contract’s lowest close since March 29. New-crop corn ended near a three-month low after needed rains fell in much of the Midwest over the weekend. Late today, USDA reported 67% of the U.S. corn crop in either “good” or “excellent” condition as of Sunday, down from 70% a week earlier and below trader expectations for a combined reading of 69%.
Soybeans: November soybeans rose 8 1/2 cents to $14.32 3/4, while July futures surged 19 3/4 cents to $16.30 1/2. July soymeal rallied $10.10 to $447.20 per ton, the highest close in over two months. July soyoil rose 107 points to 70.82 cents per pound. Nearby soybeans jumped sharply on corrective buying after last week’s sharp losses and support from gains in soymeal. USDA rated 65% of the U.S. soybean crop good-to-excellent as of Sunday, down from 68% a week earlier. The good-to-excellent number was expected to hold unchanged.
Wheat: September SRW wheat fell 19 cents to $9.17 1/2 and September HRW wheat fell 23 1/4 cents to $9.75, both near four-month lows. September spring wheat fell 26 cents $10.44 1/2. Wheat futures extended last week’s nosedive on slumping charts and farmer selling as the winter harvest accelerated. Harvest was 41% complete as of Sunday, USDA reported, up from 25% a week earlier and 6 percentage points ahead of normal. USDA rated 59% of the spring wheat crop good-to-excellent, unchanged from the previous week.
Cotton: December cotton plummeted the 400-point daily trading limit to 94.05 cents per pound, the contract’s lowest closing price since Jan. 6. Cotton futures tumbled near a five-month low amid ongoing concern over high inflation and the prospect a recession could curb demand for apparel.
Cattle: August live cattle rose 10 cents to $133.475. August feeder cattle rose $1.625 at $174.125. Cattle futures were lifted by USDA’s Cattle on Feed Report, which had the estimated June 1 feedlot inventory up 1.2% from a year earlier, below expectations for a 1.4%. May placements fell 2.1%, larger than the expected 0.4% decline. Live steers last week averaged $144.55, up from an average of $143.67 the previous week. Choice beef cutout values rose $3.70 to $268.68 on movement of 99 loads.
Hogs: August lean hogs fell $1.90 to $104.875. Weakness in summer hog futures suggests traders believe the cash hog market is near a peak. The CME lean hog index was up 22 cents today at $110.91, the highest since last August and up over $11 from mid-May. Pork cutout values fell $3.17 to $109.03, led by a drop of nearly $15 in bellies. Movement was stronger at 311.5 loads.