After the Bell | March 3, 2022
Corn: May corn futures retreated from limit-up gains earlier to close 22 3/4 cents higher at $7.47 3/4. December corn firmed 2 3/4 cents to $6.12. Corn futures were supported by surging wheat prices and concerns about global grain trade amid the ongoing Russia/Ukraine conflict. Fundamentally, freight markets and basis at ports signal a significant pickup in export business. Some of that was confirmed this morning as USDA reported daily corn sales of 337,000 MT to “unknown destinations” for 2021-22. Earlier this week, there was unconfirmed talk China bought at least 10 cargoes of U.S. corn for spring delivery to replace Ukrainian supplies. That would suggest more daily sales are coming.
Soybeans: May soybean futures rose 2 3/4 cents to $16.80 1/4 but down from a one-week high at $16.99 posted overnight. May soybean meal rose $5.40 to $453.40. May soybean oil fell 106 points to 74.81 cents per pound after earlier posting a contract high at 77.33 cents. China continued a string of U.S. soybean purchases that began in late January. Early today, USDA reported a daily soybean sale of 132,000 MT to China, equally divided between the 2021-22 and 2022-23 marketing years. Since Jan. 28, USDA has reported a combined 5.596 MMT of soybean sales to China or unknown destinations, a more than seven-fold increase from the pace the previous month.
Wheat: May SRW and HRW futures both rose the expanded daily limit of 75 cents for the second consecutive day, settling at $11.34 and $11.50 3/4, respectively. Nearby SRW closed at a 14-year high. May spring wheat rose the 60-cent daily limit to $11.18 1/4. HRW and SRW futures price limits will remain at 75 cents tomorrow. Wheat futures extended a steep rally as Russia’s invasion of Ukraine throws the global grain trade into turmoil. Ukrainian ports have been closed since the war began a week ago, casting growing uncertainty on grain supplies from the Black Sea region with global wheat stockpiles already heading for a five-year low.
Cotton: May cotton futures surged 126 points to 119.80 cents per pound. The cotton market was supported by from crude oil futures’ rally to a 13 1/2-year high above $116.57, although oil tumbled by the close on speculation a nuclear deal with Iran could boost global supplies. A rise in the U.S. dollar index to a 21-month high also tempered cotton’s gains. USDA reported net weekly U.S. cotton sales of 348,600 running bales (RB) for 2021-22, up 41% from the previous week and up 51% from the prior four-week average.
Cattle: April live cattle fell $1.75 to $138.35, a four-month low. April feeder cattle fell $2.475 to $160.525. Cattle futures fell on eroding cash fundamentals and growing concern grew over beef demand. Corn prices' extended rally over $7.00 pressured feeders. Live steers this week averaged $140.48 through this morning, down from last week's average of $143.22. Choice grade cutout values fell $1.37 to an 11-month low of $254.35, though movement was strong at 153 loads.
Hogs: April lean hog futures fell $1.10 to $105.20. Hog futures were pressured by signs of a topping cash market and seasonal weakness. The next CME lean hog index is expected to fall 14 cents from a six-month high at $99.84, though the benchmark still trails nearby futures by over $5.00 after rallying since late December. Expectations for slower consumer demand during Lent, which began yesterday, also weighed on the market, as did growing concern over surging inflation. Pork carcass cutout values fell $2.01 today to $106.41, led by a decline of over $33 in bellies. Movement was strong at 360 loads.
