After the Bell | March 1, 2022
Corn: May corn futures rose the 35-cent daily limit to $7.25 3/4, while March corn rallied 42 1/4 cents to $7.39 3/4, the highest close for a nearby contract since $7.57 1/2 on May 12. Market attention remained squarely on the Russia/Ukraine war, which fueling growing concern over global grain supplies and disruptions to trade. Russia and Ukraine provide almost 20% of world corn exports. Corn futures were also supported by unconfirmed rumors China booked up to 10 cargoes of U.S. corn. If China did buy U.S. corn, the purchases should be confirmed through daily USDA sales announcements later this week.
Soybeans: May soybeans rallied 53 1/4 cents to $16.90 while November futures rose 41 1/4 cents to $14.77. May soymeal gained $8.00 to $454.30 per ton. May soyoil soared 369 points to 76.21. The soy complex joined rallying wheat and corn futures amid concerns over disruption to global vegetable oil supplies. Nearby soyoil futures posted a record high close, while nearby soybeans settled at a 9 1/2-year high. Fresh export business supported soybean prices. Early today, USDA reported a daily soybean sale of 264,000 MT for delivery to China during the 2022-23 marketing year, the latest in a month-long flurry of purchases. Since Jan. 28, USDA has reported a combined 4.934 MMT of soybean sales to China or unknown destinations, a more than seven-fold increase compared to the sales the previous month.
Wheat: May SRW wheat rose the 50-cent daily limit to $9.84 and May HRW wheat also rose the 50-cent limit, ending at $10.03. March spring wheat rose 59 3/4 cents to $10.53 3/4. HRW and SRW futures price limits expand to 75 cents tomorrow. Conflict between Russia and Ukraine escalated, intensifying concern over global grain trade disruptions. End-users may soon need to find alternative wheat supplies.
Cotton: May cotton futures jumped 363 points to 122.75 cents per pound, the contract’s highest closing price since $122.91 on Feb. 11. Cotton futures joined rallies in grains and crude oil amid broad market concern the intensifying Russia/Ukraine war will disrupt global commodity trade. Cotton gains were limited as U.S. stocks came under pressure, stirring concern over demand for apparel and other consumer goods.
Cattle: April live cattle futures fell 90 cents to $140.525, the lowest close since $140.10 on Jan. 25. April feeder futures fell $2.20 to $159.80, the lowest close since Nov. 1. Live cattle fell to a five-week low as the escalating Russia/Ukraine war and soaring inflation stirred concern over consumer demand for beef. Corn futures’ rally above $7.00 weighed on feeder cattle. Last week’s late cash market slippage and indications of more softness this week may signal the end of a month-long cash rally. Choice beef cutout values extended a five-week slide, falling 83 cents today to $256.68, an 11-month low, though movement was strong at 144 loads.
Hogs: April lean hogs surged $2.70 to $106.20, the contract’s first gain in five sessions. Hog futures surged as firm cash fundamentals helped spur a corrective bounce from sharp recent declines. The CME lean hog index extended a two-month climb, with tomorrow’s benchmark expected to rise 57 cents to $99.66, near a six-month high and $6.54 below April futures. Pork cutout values fell a third straight day, falling $4.08 to $108.19 and led by a drop of nearly $28 in primal bellies. Movement totaled 291 loads.
