After the Bell | October 28, 2021
Corn: December corn futures rose 5 1/2 cents to $5.62 3/4, the highest closing price since $5.65 on Aug. 18. today. Corn extended this week’s rally as strong ethanol demand overshadowed lackluster export data. USDA early today reported net U.S. corn sales of 890,400 MT for the week ended Oct. 21, down 30% from the previous week and down 10% from the average for the previous four weeks. Sales were at the low end of expectations from 800,000 MT to 1.3 MMT. Traders seemed more focused on expectations more rain will delay the Midwest harvest and yesterday’s Energy Department report that listed last week’s U.S. ethanol production at 1.106 million barrels per day, the second-highest weekly total ever. Also supportive was a drop in the U.S. dollar index to a four-week low.
Soybeans: January soybean futures fell 3 3/4 cents to $12.46, but still up from $12.30 3/4 at the end of last week. December soymeal ended unchanged at $330.90, while December soyoil fell 55 points to 60.97 cents, the lowest closing price since Oct. 14. Soybeans faded from gains earlier in the day on weakness in soyoil, which was pressured by lower crude oil and palm oil prices and disappointing weekly export sales. Net U.S. soybean sales totaled 1.183 MMT for the week ended Oct. 21, down 59% from the previous week and down 22% from the four-week average. China accounted for 1.081 MMT, including 449,000 MT switched from “unknown” destinations. Traders expected sales to range between 1.25 MMT and 2 MMT.
Wheat: December SRW wheat rose 12 3/4 cents to $7.72 1/2, the highest settlement since $7.75 on Aug. 16. today. December HRW wheat rose 7 1/4 cents to $7.90, the highest closing price for a nearby contract since May 2014, when the market peaked at $8.55 1/4. December spring wheat futures surged 15 1/2 cents to $10.37 1/2, the highest close for a nearby contract since June 2011. A tightening global supply and demand balance sheet continued to drive wheat futures prices higher, along with dry conditions in Ukraine wheat country and in most of the northern U.S. plains. Primary HRW areas in the Central and Southern Plains “will continue to be in need of greater moisture” through the end of this month, World Weather Inc. said today. While some rain is expected during the first few days of November, “it is unlikely that the precipitation is great enough to significant raise soil moisture.” Net weekly U.S. wheat sales totaled 269,300 MT, down 26% from the previous week and down 31% from the average for the previous four weeks. Expectations ranged from 200,000 to 550,000 MT.
Cotton: December cotton futures rose 313 points to 113.65 cents, the highest closing price for a nearby contract since mid-2011 Strong weekly export sales fueled cotton to the highest levels in over 10 years. USDA reported upland cotton sales of 360,800 running bales for the week ended Oct. 21, with another 8,500 bales of pima. Normally, seasonal sales for this time of year are about half that level. China purchased 186,700 bales of upland cotton and 900 running bales of pima, as it needs supplies to keep cranking out textiles to export. Outstanding cotton sales are now 11% above year-ago and 6% above the five-year average, despite current high prices. While exports so far this marketing year are 35% under year-ago levels, total commitments (outstanding sales, plus exports) are already 57% of USDA’s forecast.
Cattle: December futures fell $1.25 to $130.325, the contract’s first decline in four days, while November feeder cattle futures slid $0.825 to $157.65. Cattle fell in a corrective setback after rallying near two-month highs earlier this week. Futures’ recent surge appeared to prompt meatpackers to sharply boost their bids for country cattle. Live steers in five top feedlot areas today averaged $126.27, up from last week’s $124.39 average. Cash trading was significantly more active than one week ago, which seemed to set the stage for continued strength in fed cattle futures. Choice cutout values rose $1.26 to $284.29, near a three-week high reached Oct. 26. Movement totaled 130 loads.
Hogs: December lean hog futures rose $3.225 to $75.20, the first gain in three days and the highest closing price since $76.025 on Oct. 20. Hog futures rose sharply in a corrective bounce after sharp declines to 10-month closing lows earlier this week. Cash fundamentals and technicals remain weak, but a gain in wholesale pork may have encouraged buying interest on ideas prices may be bottoming. Pork cutout values rose 53 cents to $94.00, up from yesterday’s drop near eight-month lows. Today’s movement was nearly 263 loads. The latest CME lean hog index fell 99 cents to $81.67, the lowest since $80.70 on Feb. 25. Carcasses on national direct markets fell 67 cents to $62.52. Stronger exports could help put a floor under futures prices. Earlier today, USDA reported net weekly pork sales at 29,500 MT for the week ended Oct. 21, up 41% from the previous week but down 1.0% from the four-week average. So far this year, U.S. pork exports are down 5.4% from the same period a year ago.
