After the Bell | February 10, 2022
Corn: March corn futures fell 5 cents to $6.41 3/4, after rising earlier to $6.62 3/4, the highest intraday price for nearby futures since mid-July. December futures fell 3 3/4 cents to $5.84 3/4. Corn futures joined a broad agricultural commodity sell-off driven by profit-taking and long liquidation in the wake of the steep gains in recent sessions. Lackluster weekly export sales figures from USDA raised concern whether corn futures can hold at elevated levels much longer. USDA reported net U.S. corn export sales of 589,100 MT for the week ended Feb. 3, down 50% from the previous week and down 43% from the average for the previous four weeks.
Soybeans: March soybeans fell 20 1/2 cents to $15.74 1/4, after rising earlier to a contract high at $16.33. March soymeal fell $7.90 to $454.00. March soyoil rose 41 points to 64.51 cents. Soybean futures ran out of buyer interest and turned lower amid profit-taking and fund liquidation, despite bullish news earlier today. Brazil cut its soybean crop estimate by 15 MMT to 125.5 MMT, compared to USDA’s current estimate of 134 MMT. Weekly export sales were above expectations at nearly 1.6 MMT for old-crop and nearly 900,000 MT for 2022-23.
Wheat: March SRW wheat fell 13 1/2 cents to $7.71 1/2, after rising earlier to a two-week high at $8.01 3/4. March HRW wheat fell 14 cents to $8.01. March spring wheat fell 11 1/4 cents to $9.42 1/4. Wheat futures followed corn and soybean markets today, rallying earlier and then selling off amid fund liquidation. Disappointing USDA export sales numbers also weighed on wheat futures. Net weekly U.S. wheat sales for 2021-22 totaled 84,800 MT, up 48% from the previous week but down 75% from the prior four-week average. U.S. winter wheat considered in drought condition increased two points to 71% for the week ended Feb. 8, according to the U.S. Drought Monitor.
Cotton: March cotton fell 77 points to 125.66 cents per pound. Long liquidation and a “risk-off” trading day in commodities, with grain futures tumbling, weighed on cotton futures. USDA’s weekly export sales report today showed U.S. cotton net sales of 185,200 running bales (RB) for 2021-22 were down 44% from the previous week and down 47% from the prior four-week average. Top buyers included China (100,800 RB) and Pakistan (20,600 RB). Lingering pressure from yesterday’s USDA Supply & Demand Report also pressured cotton futures. USDA lowered its U.S. 2021-22 export forecast by 250,000 bales.
Cattle: April live cattle fell 95 cents to $146.875 after rising earlier to a contract high at $148.70. March feeder cattle fell $1.55 to $166.275. Cattle futures tumbled from contract highs amid a commodity sell-off driven by profit-taking and long liquidation. Cash prices continued firming as meatpackers stepped up slaughter. Cash sources reported northern dressed cattle prices $2 to $4 higher than last week, while asking prices for live steers in northern markets were solid around $142.00 and southern prices were firm. Wholesale beef extended a recent slump as packers cut prices to encourage retail demand. Choice cutout values fell 97 cents today to $274.82, the lowest daily average since Jan. 7, though movement was again strong at 158 loads.
Hogs: April lean hog futures fell $1.375 to $103.425 after earlier reaching a contract high at $107.70. February futures fell 5 cents to $90.175. Hog futures fell in a broad commodity market setback driven by fund long liquidation. Sizeable premiums built into spring and summer futures may have given buyers pause, despite ongoing support from cash markets. The next CME lean hog index is expected to gain 52 cents to $87.74, the highest since mid-October. Wholesale pork prices fell today but remain near four-month highs. Pork carcass cutout values dropped $3.36 to an average of $101.48, led by a decline of nearly $22 in hams. Movement was relatively light at 241.64 loads.
