After the Bell | March 18, 2022
Corn: May corn futures fell 12 3/4 cents to $7.41 3/4, a drop of 20 3/4 cents for the week. December futures rose 1/2 cent to $6.45 1/2, down 9 3/4 cents for the week. Nearby corn futures extended overnight declines amid spillover from slumping wheat markets and pre-weekend profit-taking as traders continued to monitor the Russia-Ukraine war and disruptions to global grain trade. The war will continue to consume market focus next week, with corn likely to take direction from wheat.
Soybeans: May soybeans fell 1/2 cent to $16.68, down 8 cents for the week. May soybean meal rose $2.90 to $477.00 per ton, down 10 cents for the week. May soybean oil fell 234 points to 72.29 cents per pound, down 374 points for the week and the contract’s lowest closing price since Feb. 25. Nearby soybeans erased overnight gains amid weakness in grains and a plunge in Malaysian palm oil. Price weakness this week stemmed in part from signs that U.S. soybean export demand is slowing. Price direction next week will hinge on export business, as well as outside markets like crude oil which tumbled sharply this week.
Wheat: May SRW wheat fell 34 1/4 cents to $10.63 3/4, losing 43 1/4 cents for the week. May HRW futures lost 21 3/4 cents to $10.70 1/2, down 18 3/4 cents for the week. May spring wheat fell 18 3/4 cents to $10.60 1/4, down 10 cents for the week. Technically bearish closes in winter wheat futures after a highly volatile week may portend followthrough selling early next week. Wheat traders will be watching a big storm forecast to hit the U.S. Plains states Sunday through Tuesday, potentially boosting drought-stressed crops.
Cotton: May cotton rose 500 points to 126.85 cents per pound, a lifetime-high close for the contract and a weekly gain of 582 points. Strong mill buying and diminished availability of domestic cotton powered this week’s late surge, with the lack of deliveries against the expired March contract emphasizing the latter development. Strong USDA export sales numbers continued to support the market.
Cattle: June live cattle rose $1.15 to $137.075, the contract’s highest closing price since Feb. 28 and a gain of $4.125 for the week. April feeder cattle rose $1.225 to $162.325. Live cattle closed near a three-week high on renewed cash strength. USDA-reported live steers averaged $138.55 through this morning, up 25 cents from last week's average. Wholesale beef prices extended a recent upturn, indicating improving retail demand. Choice beef cutout values rose $1.11 today to $258.16, the highest daily average since Feb. 25.
Hogs: April lean hogs fell 95 cents to $99.40, the contract’s lowest closing price since Feb. 2 and a decline of $2.10 for the week. Hog futures collapsed under profit-taking late this week, though firmness in cash fundamentals suggests the market may find support early next week. Pork cutout values fell 74 cents today to $104.46, up from $102.55 at the end of last week. Movement was light at 178 loads. The preliminary lean hog index is up 59 cents to $101.36, a six-month high.
