After the Bell | January 25, 2022
Corn: March corn futures fell 1 cent to $6.20 after hitting a seven-month high earlier. New-crop December futures hit a contract high and gained 2 1/4 cents to $5.69 3/4. Today’s low-range close in March corn suggests market bulls are exhausted and prices may consolidate for a few sessions. Early strength stemmed from gains in the wheat market and a rebound in crude oil following yesterday’s losses. Improved rain chances for South American growing regions pressured prices. World Weather expects Paraguay and far southern Brazil to receive significant rain the next few days, with additional chances for rain through the first week of February.
Soybeans: March soybeans rose 4 1/4 cents to $14.07 1/4 after dropping as low as $13.93 1/4. March soymeal fell $1.90 to $392.00 and March soyoil rose 54 points to 62.51 cents. Soybean futures fell initially on expectations rain this week will provide relief to dry areas of South America, but bounced back as the wheat market rallied. Forecasts call for improved rain chances and more seasonal temperatures in southern Brazil as a cold front moves through the region this week after two weeks of temperatures exceeding 100 degrees Fahrenheit, consultant Michael Cordonnier noted.
Wheat: March SRW wheat rose 17 1/2 cents to $8.18, the contract’s highest close since Nov. 29. March HRW wheat rose 16 1/2 cents to $8.34 1/2, the highest since Dec. 27. March spring wheat fell 1 1/4 cents to $9.47 1/4. Winter wheat extended a rally behind ongoing concerns a potential Russia invasion of Ukraine may disrupt the global wheat trade. Prices were also supported by state crop condition reports that reflected further drought-driven deterioration in the U.S. Plains HRW crop. In Kansas, the HRW acres rated “good” to “excellent” dropped to 30%, down three points from the end of December, reports showed.
Cotton: March cotton futures rose 54 points to 120.92 cents per pound after trading within yesterday’s range. Cotton futures rose for the first time in four sessions as a sharp bounce in U.S. stocks suggested optimism over economic growth. The direction of cotton prices still depends on export demand, as well as the domestic industry’s ability to get previously sold fiber shipped to overseas customers. The U.S. dollar index climbed near a three-week high, and continued dollar strength may mute buying interest.
Cattle: April live cattle gained 2.5 cents to $140.10. March feeder cattle fell $1.40 to $159.85. Nearby live cattle posted a modest recovery from sharp losses the previous two sessions amid reports of steady to firm cash trade. Stronger corn prices weighed on the feeder market. Last Friday’s USDA Cattle on Feed report continued to pressure live cattle, but the higher-than-expected December placement figure wasn’t as bearish as it seemed, since the bulk of the animals placed were concentrated at lighter weights. Choice cutout values fell $1.12 today to $292.38 and Select fell $1.47 to $283.32, though movement was strong at 143 loads.
Hogs: April lean hog futures rose $1.925 to $97.25, a lifetime-high close for the fourth straight session. February futures rose $1.125 to $87.45, the highest close for a nearby contract since mid-October. Strong cash market fundamentals continued to drive futures higher. Pork cutout values fell $3.20 today to $92.46, down from a 2 1/2-month high yesterday. Movement totaled 347 loads. The CME lean hog index tomorrow is projected down 24 cents at $78.08.
