Corn: December rose 1 3/4 cents to $5.34 per bushel, down from $5.41 1/2 at the end of last week. Corn faced pressure from the accelerating U.S. harvest, especially with open weather giving producers a great opportunity to get grain in the bin. Harvest pressure may have muted the market’s reaction to USDA’s weekly export sales report, which showed net U.S. corn sales during the week ended September 30 at 1.265 million metric tons (MMT), above expectations 350,000 to 800,000 MT and more than triple the week-prior figure of 370,400 MT. Mexico was the main buyer, having purchased 801,400 MT. While this latest sales figure was impressive, U.S. corn export sales so far in the 2021-22 crop year are running 32% behind the pace seen in September-October last year. The slowdown at least partially reflects the damage done by Hurricane Ida to Gulf Coast export facilities. Unfortunately for the industry, the recovery from the storm damage may take several more weeks.
Soybeans: November soybeans futures rose 5 1/4 cents to $12.47 1/4 a bushel. December soybean meal fell $3.40 to $319.30 per ton, the lowest close since late September 2020. December soybean oil rose 172 points to 62.06 cents per pound. Soybean futures were supported by signs of stronger export demand. Early today, USDA reported net U.S. soybean sales totaling 1.042 MMT for the week ending Sept. 30, slightly under the previous week’s sales of 1.094 MMT. China was a prominent buyer at 671,300 MT, including 131,000 MT switched from unknown destinations. The latest weekly sales were at the high end of trade expectations ranging from 600,000 to 1.2 MMT. But U.S. soybean exports so far this year are down 70% from the same period a year earlier.
Wheat: December SRW wheat fell 4 3/4 cents to $7.41 1/4 a bushel. December HRW wheat fell 3 3/4 cents to $7.41 1/4. December spring wheat rose 3 1/4 cents to $9.42 1/4, after reaching $9.49, a contract high for the second day in a row. Mild profit-taking pressured winter wheat futures markets, following recent gains that pushed prices to six-week highs earlier this week. The tight domestic and global supply situation is likely to keep a floor under wheat futures for at least the near term. USDA today reported net weekly U.S. wheat sales of 333,200 MT, were up 15% from the previous week but down 19% from the average for the previous four weeks. U.S. wheat exports, at 543,400 MT, were up 47% from the previous week and up 22% from the prior four-week average.
Cotton: December cotton rose 55 points to $1.1161 per pound, the 12th gain in the past 13 days. October futures settled at $1.1365, the highest since September 2011. Cotton futures extended a demand-driven rally that’s sent December futures up over 25% since Sept. 20, though USDA’s weekly export sales report today suggested demand may be softening. Net U.S. cotton net sales for the week ending Sept. 30 totaled 246,700 running bales (RB), down 57% from the previous week and down 40% from the four-week average. Increases were primarily for China (174,500 RB, including decreases of 11,000 RB) and Guatemala (33,000 RB). Exports of 125,100 RB, a marketing-year low, were down 24% from the previous week and down 32% from the prior four-week average.
Cattle: December live cattle rose $1.875 to $130.10 per hundredweight, the highest closing price since $103.925 on Sept. 3. November feeder cattle rose $3.475 to $161.60, the highest close since Sept. 7. Strong weekly export sales added support. For the week ended Sept. 30, U.S. beef sales totaled 15,600 MT, up 5% from the four-week average. China was the lead buyer at 6,000 MT. Yesterday, the U.S. Meat Export Federation said the U.S. exported 132,577 MT of beef during August, up 21% from the same month in 2020 and the second largest monthly volume of the year. Citing USDA data, the Export Federation said the value of August shipments rose 55% to a record $1.04 billion. During the first eight months into the year, the U.S. exported 955,407 MT of beef worth $6.62 billion, a gain of 18% and 34%, respectively, compared with last year. While beef export demand is strong, traders are still looking for a bottom in the wholesale market. Choice boxed beef fell another $1.32 today to an average of $285.30, though Select boxes firmed $1.53 and movement was strong at 185 loads. Once the wholesale beef market finds a bottom, cattle futures may generate more sustained buying. Cattle slaughter so far this week totaled 483,000 head, up 2.1% from the same period last week and up 2.3% from the same period a year ago, USDA reported.
Hogs: December lean hogs rose 30 cents to $82.025 per hundredweight, the first gain in five days, though the most-active contract is still down from $85.175 at the end of last week. Hog futures resumed a firmer tone after stemming losses during the first half of the week. Carcass cutout values fell 60 cents today to an average of $112.26. Movement totaled 367 loads. National direct average carcasses rose 17 cents to an average of $70.18, while the latest CME lean hog index fell 60 cents to $93.51, near a six-month low reached in late September. USDA’s weekly export sales report proved disappointing for market bulls. Net U.S. pork sales totaled 22,100 MT for the week ending Sept. 30, were down 48% from the previous week and down 34% from the prior four-week average. Meatpackers slaughtered an estimated 1.896 million head of hogs so far this week, up 0.5% from the same period a week ago, but down 2.9% from the corresponding period in 2020.