Corn: December corn futures rose 3 3/4 cents to $5.29 1/4 a bushel, the highest closing price since $5.29 1/2 on Sept. 16. Futures settled at the highest price in a week as wheat markets rallied and traders disregarded weekly corn export sales that were at the low end of expectations. USDA today said net U.S. corn sales totaled 373,000 MT for the week ended Sept. 16, compared to expectations for sales of 300,000 to 800,000 MT. So far in the 2021-22 marketing year, corn exports of 846,000 MT trail last year’s levels by 58%, partly reflecting Hurricane Ida’s damage to export terminals at the U.S. Gulf. Also today, USDA reported a daily sale of 138,403 MT of corn for delivery to Guatemala during the 2021-22 marketing year. Shipments may pick up as Gulf export capacity is restored, but price upside in corn futures may be limited by the accelerating harvest across the Midwest.
Soybeans: November soybeans rose 1 1/2 cents to $12.84 1/4 per bushel. December soymeal fell $1.70 to $340.10 per ton, while December oil gained 67 points to 57.02 cents per pound. Soybeans posted modest gains despite supportive export news and soyoil strength, while spreading weighed on soymeal. USDA reported net U.S. soybean sales for the week ending Sept. 16 at 902,900 MT, led by China, which bought 624,200 MT. Traders expected sales of 500,000 MT to 1.1 million metric tons (MMT). Net soymeal sales surged to 45,000 MT for 2020-21 and 216,400 MT for 2021-22, with last week’s shipments jumping to 244,800 MT.
Wheat: The winter wheat market rose mostly 12 to 14 cents, led by nearby HRW contracts. Spring wheat futures finished 7 to 8 cents higher. Wheat futures were buoyed by strength in the European market, as Euronext futures firmed to five-week highs on strengthening export demand. Given the smaller crop in Russia and slow exports due to uncertainties with the export tax system, more demand is heading to Europe. There was also unconfirmed talk that China was shopping for U.S. supplies. Weekly U.S. wheat export sales totaled 355,900 MT, within the range of pre-report estimates but down sharply from the previous week. It’s likely going to take a pickup in export demand to fuel sustained buying in wheat futures.
Cotton: December cotton rose 159 points to 92.46 cents a pound, up 3.9% from a two-month closing low of 89.02 cents on Sept. 20. Prices closed near the session highs on short-covering and bargain-hunting following a drop to six-week lows Sept. 20. Futures gained support from a weaker U.S. dollar and from strength in outside markets, including crude oil futures’ rally to seven-week highs today. USDA today reported net weekly U.S. cotton export sales at 345,400 running bales (RB) for 2021-22, up 21% from the previous week and up 27% from the prior four-week average. Exports of 176,800 RB were down 26% from the previous week and down 7% from the four-week average.
Cattle: December live cattle fell 7.5 cents to $128.625, while November feeder cattle fell 12.5 cents to $158.10. Cattle futures faded from early-session highs as sagging wholesale beef prices raised concern over demand. Choice cutout values fell $2.23 today to an average of $305.60, the lowest since $305.32 on Aug. 10. Cash cattle trade picked up yesterday at prices ranging from $122 to $124, steady to lower compared with last week. Late today, USDA reported average live steer prices at $123.76, down slightly from last week’s $123.88 average. Strong export sales offered some encouragement for market bulls. USDA today reported net U.S. beef sales of 15,800 MT for the week ended Sept. 16, up 3% from the previous week and up 17% from the previous four-week average. Beef exports sales so far this year are up 15% from the same period last year. Tomorrow’s USDA Cattle on Feed Report is expected to show continued contraction in U.S. feedlot inventories. Based on a Reuters survey, August feedlot placements likely fell around 1.0% from year-ago levels.
Hogs: December lean hogs rose $3.125 to $76.50 per hundredweight, the highest closing price since Sept. 9. Futures extended a rebound from seven-month lows last week, suggesting a near-term bottom is in place, even as cash fundamentals provided mixed signals. Pork cutout values today fell $2.63 to $104.29, while carcasses on national direct markets fell 63 cents to $76.53. The latest CME lean hog index fell 91 cents to $92.65, the lowest since $91.74 in mid-March. USDA reported net U.S. pork sales for the week ended Sept. 16 totaling 32,600 MT, up 29% from the previous week and up 12% from the prior four-week average. Traders await tomorrow afternoon’s USDA quarterly Hogs and Pigs Report, which is expected to show a continued reduction in the U.S. herd. Total hog inventories as of Sept. 1 are expected to be down 1.7% from a year earlier, based on a Reuters survey.