After the Bell | January 31, 2022
Corn: March corn futures fell 10 cents to $6.26 after reaching a contract high overnight at $6.42 1/2. December corn rose 4 cents to $5.73 1/2. Old-crop corn futures tumbled on profit-taking and spillover from sharp declines in the wheat market, which dropped in part on easing concerns over a potential Russian invasion of Ukraine. USDA reported 1.036 MMT (40.8 million bu.) of corn inspected for export during the week ended Jan. 27, down from 1.186 MMT the previous week. Expectations ranged from 950,000 MT to 1.4 MMT.
Soybeans: March soybean futures jumped 20 1/2 cents to $14.90 1/2, the highest closing price for a nearby contract since prices topped $15.00 in June. March soymeal rose $7.70 to $418.90 and March soyoil fell 45 points to 64.82 cents. Mounting concerns over the South American soybean crop fueled a runup to contract highs in soybeans. While there is some rain in the two-week forecast for Brazil and Argentina, damage has already been done from extended extreme heat and drought stress. USDA reported daily soybean sales of 129,000 MT for delivery to China, 66,000 MT is for delivery during the 2021-22 marketing year and 63,000 MT is for delivery in 2022-23.
Wheat: March SRW wheat fell 25 cents to $7.61 1/4, the contract’s lowest closing price since $7.41 1/2 on Jan. 14. March HRW futures fell 21 cents to $7.81 1/4, the lowest close since Jan. 18. March spring wheat fell 13 3/4 cents to $9.06 1/2. SRW futures dropped to the lowest levels in over two weeks and HRW and spring wheat also tumbled amid signs of easing Russia-Ukraine tension and expectations for moisture relief for dry cropland in the U.S. Plains. A storm later this week is expected to bring 2 to 6 inches of snow to primary HRW production areas from the Texas Panhandle into western and central Kansas, eastern Colorado and southwestern Nebraska, World Weather Inc. said.
Cotton: March cotton futures rose 381 points to 127.57 cents per pound, the highest settlement for a nearby contract since mid-2011. Cotton futures extended last week’s late upturn to reach the highest levels in 10 1/2-years behind strength in crude oil and U.S. stocks and optimism over demand. The S&P 500 index rose 1.9% today as the market continued recovering from sharp declines earlier this month. Weakness in the dollar also supported cotton futures.
Cattle: April live cattle surged $1.425 to $144.525, the contract's highest close since Dec. 31. March feeder cattle rallied $3.40 to $163.025. Feeder cattle surged as cash prices gained and corn futures tumbled. Results from the Oklahoma City feeder cattle auction showed prices generally $2 to $4 higher compared with last week. The midweek storm forecast for the Central and Northern Plains, along with the Midwest, could encourage packers in the northern market to either be active early in the week, though they could wait until after the storm to buy the bulk of their cattle. Live steers last week averaged $136.95, down 55 cents from the previous week and the sixth weekly decline in the past seven weeks.
Live cattle futures may gain a boost tomorrow after USDA, in its semi-annual Cattle Inventory report released after today's close, said the U.S. herd as of Jan. 1 totaled 91.9 million head, down 1.9% from the same date a year earlier and about 762,000 head below expectations.
Hogs: April lean hogs rose 77.5 cents to $95.70. Nearby hogs posted solid gains today on firm cash market fundamentals. The CME lean hog index rose 86 cents to $80.61, the highest since late October. Pork cutout values fell $1.88 today to an average of $94.51, though movement was decent at 352 loads. Slaughter levels are on the rise, easing concern over possible backups of market-ready animals. Today’s hog slaughter was an estimated 475,000, up 27,000 from one week ago and down 2,000 from a year ago.
