After the Bell | March 4, 2022
Corn: May corn futures rose 6 1/2 cents to $7.54 1/4, a gain of 98 1/2 cents for the week, and posted a contract high at $7.82 1/2. March futures reached $7.87 1/4, the highest for a nearby contract since $8.00 in July 2013. December futures hit a contract high at $6.47. Corn futures rose on spillover from soaring wheat prices and indications that global grain trade disruptions from the Russia/Ukraine war are boosting demand from China and other foreign buyers. Russia/Ukraine will continue to dominate market focus next week, along with prospects for further U.S. export business.
Soybeans: May soybeans fell 7 1/4 cents to $16.60 1/2 after tumbling from a high of $16.88 1/2. The most-active contract gained 76 cents this week. November soybeans fell 3 3/4 cents to $14.50 1/4. May soymeal rose $7.0 to $460.40. May soyoil fell 201 points to 72.80 cents. Nearby soybeans initially followed corn and wheat markets higher and gained further support from fresh export business but faded late on profit-taking and indications the market may have established a near-term top. Russia/Ukraine concern likely will likely keep prices elevated next week, and traders will also watch whether China’s five-week buying binge is sustained. USDA’s March 9 Supply and Demand Report is expected to show further reductions in South America’s crop prospects.
Wheat: May SRW wheat rose the 75-cent limit, hit a contract high at $12.09 and recorded a gain of nearly $3.50 this week. May HRW futures rose 62 1/4 cents to $12.14 1/2, up over $3.14 this week. Nearby SRW futures scored a record high at $13.40. May spring wheat gained 28 3/4 cents to $11.47. Intensifying Russia/Ukraine concerns fueled active buying from large speculators. A short-term pullback is possible, though prices likely will remain elevated as long as war rages and sellers are reluctant to step in. Ukrainian ports remain closed, contributing to surging export demand for European Union wheat.
CME will widen regular daily trading limits for HRW and SRW futures starting with the March 7 session, pending CFTC approval. The new regular daily limit will be 85 cents, up from 50 cents currently, and expanded limits will widen to 130 cents from 75 cents, Reuters reported.
Cotton: May cotton fell 338 points to 116.42 cents a pound, down 221 points for the week and the lowest close since Jan. 14. Concern over the global economy and strengthening U.S. dollar dragged prices lower. The short-term outlook revolves around Russia/Ukraine, with USDA’s Supply and Demand report March 9 and weekly Export Sales March 10 also holding potential to move prices.
Cattle: April live cattle fell $2.575 to $135.775, down $6.15 for the week and a five-month closing low. April feeder futures sank $3.275 to $157.25, down $7.50 for the week. Concern high retail prices and the Russia/Ukraine war will hurt beef demand continued to hang over the market. Wholesale beef prices extended a slide and the cash market halted a four-week upswing, with live steer prices through yesterday down nearly $3.00 from last week’s average. Choice cutout values ended the week at $254.33, down nearly $4.00 from a week ago and an 11-month low. Movement totaled 112 loads.
Hogs: April lean hog futures fell the initial $4.75 daily limit to $100.45, a four-week low and a decline of $3.225 for the week. The daily limit expands to $7.00 Monday. Hog futures joined a downturn in cattle amid bearish technicals and demand concerns fueled by slumping wholesale pork. April futures formed a bearish head-and-shoulders reversal pattern on the daily chart, suggesting the market has topped. The next CME lean hog index is expected to fall 13 cents to $99.57. Pork carcass cutout values fell $2.42 today to a three-week low of $103.99, down nearly $10 for the week. Movement totaled 258 loads. USDA estimated this week's slaughter at 2.427 million head, down 69,000 head from last week and down 130,000 head from the same week in 2021.
