After the Bell | February 24, 2022
Corn: May corn futures rose 9 cents to $6.90 1/4, after reaching a contract high at $7.16 1/4. March corn gained 11 1/4 cents to $6.95, the highest close for a nearby contract since $6.97 1/4 on July 2. Corn futures faded from overnight gains after rising the initial daily 35-cent trading limit as Russia’s invasion of Ukraine triggered a rally in the wheat market. Russia and Ukraine account for nearly 30% of global wheat exports and almost one-fifth of world corn exports. Corn’s gains faded amid profit-taking and farmer selling, particularly in new-crop contracts, suggesting much of the Russia-Ukraine conflict had already been factored into prices.
Soybeans: May soybean futures fell 17 cents to $16.54, after surging to a contract high at $17.59 1/4 earlier. May soymeal fell $10.40 to $455.60 per ton and May soyoil rose 139 points to 71.97 cents per pound. Nearby soyoil hit a record high at 74.72 cents. Nearby soybeans overnight rose above $17.00 for the first time in nearly 9 1/2 years but faded under profit-taking throughout the regular session and ultimately settled with sharp losses. Soyoil futures soared on concern Russia’s invasion of Ukraine could disrupt global edible oil supplies. Ukraine is the world’s largest producer and exporter of sunflower seeds and sunflower oil, and, combined with Russia, the two countries account for nearly 80% of global sunseed oil exports.
Wheat: May SRW wheat futures soared the initial daily 50-cent limit to $9.34 3/4 and May HRW wheat rose 49 1/2 cents to $9.66 after Russia’s invasion of Ukraine fueled fears of disruptions to the global grain trade. Both HRW and SWR futures will trade with expanded 75-cent limits tomorrow. May spring wheat rose 17 1/2 cents to $10.20 1/4. Markets face extreme uncertainty after Ukraine suspended commercial shipping at its ports and Russia shuttered ports in the Azov Sea while leaving Black Sea terminals open. Combined, Russia and Ukraine account for nearly 30% of global wheat exports.
Cotton: May cotton fell 214 points to 119.16 cents per pound, the lowest closing price since Jan. 25. Cotton futures were pressured by a surging dollar and heightened risk aversion as Russia’s invasion of Ukraine sparked sell-offs on global stock markets. By early afternoon, U.S. financial markets had calmed, with the S&P 500 index moving higher and U.S. Treasury yields rising above daily lows. The U.S. dollar index strengthened to its highest level since June 2020 before trimming gains.
Cattle: April live cattle fell $2.45 to $142.30, the lowest closing price since Jan. 27. April feeder cattle fell $4.475 at $163.80, a two-month low. Livestock futures tumbled as Russia’s invasion of Ukraine roiled global markets, fueling growing ideas in cattle and hog markets that prices have reached near-term peaks. USDA-reported live steers averaged $143.94 this week through this morning, $1.58 above last week's average, but volume has been light ahead of tomorrow’s USDA Cattle on Feed Report. Choice grade beef cutout values fell $1.64 today to $259.24, the lowest daily average since early April. Movement was strong at 170 loads.
Hogs: April lean hog futures fell $2.50 to $105.525, the lowest close since Feb. 16. Hog futures fell sharply as financial market tumult overshadowed strong pork fundamentals. Hog slaughter is expected to run about 4.0% below year-ago levels through spring, while USDA’s Cold Storage report earlier this week showed U.S. frozen pork stockpiles as of Jan. 31 at 6.3% under year-ago levels and 22% under the five-year average. Pork carcass cutout values jumped $5.01 today to $114.13, led by a gain of over $13 in primal hams. Movement totaled about 266 loads. Tomorrow's CME lean hog index is expected to fall 12 cents to $98.04, its first decline since Jan. 19.
