After the Bell | March 15, 2022
Corn: May corn futures rose 9 3/4 cents to $7.58. Corn futures prices were supported by strength in the wheat market, which remained on edge over the Russia/Ukraine war and disruptions to global grain shipments. Crude oil futures fell sharply, further dampening buying interest in the corn market. Grain traders are starting to look beyond the immediate geopolitical crisis and toward USDA’s March 31 Prospective Plantings report, one of the most important USDA reports of the year.
Soybeans: May soybean futures fell 11 3/4 cents to $16.58 3/4, the lowest close since $16.36 3/4 on Feb. 28. May soymeal fell 30 cents to $484.00 and May soyoil fell 27 points to 73.68 cents. Soybeans were burdened by steep declines in crude oil and concern over recent Covid lockdowns in China. Consultant Michael Cordonnier lowered his Brazilian soybean crop estimate by 1 MMT, to 123 MMT, and held his forecast for Argentine production unchanged at 39 MMT. NOPA members crushed 165.057 million bu. of soybeans last month, down 9.4% from January but up 6.4% from February 2021. It was the second-largest NOPA February crush on record, behind only 2020.
Wheat: May SRW wheat rose 58 cents to $11.54 1/4. May HRW wheat rose 57 1/2 cents to $11.57 1/2. May spring wheat futures jumped 40 cents to $11.10 1/4. Wheat prices gained on short-covering fueled by ongoing concern Russia’s invasion of Ukraine will force global buyers to seek alternate grain suppliers. U.S. Plains drought remains an underlying bullish fundamental, with more than half of Kansas was classified in severe drought or worse as of March 8, according to the National Drought Mitigation Center. Major drought is also covering three-quarters of Oklahoma and more than two-thirds of Texas.
Cotton: May cotton futures fell 17 points to 118.60 cents per pound. A sizeable rebound in the equity indexes encouraged cotton buyers, though upside was limited by weakness in other commodities, such as crude oil and metals, which suggested easing inflation concern or even fears of recession. Traders await USDA’s weekly Export Sales report Thursday.
Cattle: April live cattle rose 52.5 cents to $140.85, the contract’s highest closing price since $141.425 on Feb. 28. April feeders edged up 20 cents to $162.60. Cattle futures built on yesterday’s advances and ended at the highest level in over two weeks, supported by sustained wholesale beef strength. Choice cutout values rose $2.39 to $257.90, the highest daily average since Feb. 25. Movement totaled 135 loads.
Hogs: April lean hog futures rose 20 cents to $102.40. Hog futures gained modestly in two-sided trade on support from firm cash fundamentals. The latest CME lean hog index rose 7 cents to $100.85, a six-month high and the fourth consecutive daily gain. The next index quote is expected to drop 38 cents to $100.47. Pork carcass cutout values rose $1.29 today to $104.48, driven by a jump of over $12 in primal hams, suggesting retailers are stocking up on the cut with Easter a month away. Movement was strong at 375 loads.
