After the Bell | March 21, 2022
Corn: May corn gained 14 1/2 cents to $7.56 1/4, while December futures strengthened 18 1/2 cents to $6.64. Corn futures rode strong gains in the wheat market and broad commodity strength to a dominating performance by bulls to start the week. Corn export demand remains supportive, though not strong enough to drive the market higher on its own. USDA’s weekly corn export inspections totaled 1.466 MT (57.7 million bu.), which dropped the required average weekly pace to reach USDA’s forecast of 2.5 billion bu. for 2021-22 to 45.6 million bushels. Corn inspections are running 15.0% behind year-ago, whereas USDA projects exports will decline 9.2% from last year.
Soybeans: May soybeans rose 23 cents to $16.91, a lifetime-high close for the contract. May soymeal rose $4.30 to $481.30. May soyoil rose 142 points to 73.71 cents per pound. Nearby soybeans extended overnight gains and briefly pushed back above $17.00 behind rallies in wheat and crude oil. Signs of slower export demand could limit price upside in soybeans. China slowed U.S. soybean purchases over the past week after buying actively starting in late January. USDA reported 544,986 MT (20 million bu.) of soybeans inspected for export during the week ended March 17, down from 796,785 MT the previous week.
Wheat: May SRW wheat rose 55 1/2 cents to $11.19 1/4. May HRW wheat rose 42 3/2 cents to $11.13 1/4. May spring wheat futures firmed 28 1/2 cents to $10.88 3/4. Continued grain trade disruptions due to the Russia/Ukraine war boosted wheat prices, as did sharp gains in crude oil. Wheat prices faded from daily highs, possibly due in part to beneficial precipitation hitting the U.S. Plains states early this week. Parts of the U.S. HRW wheat belt are expected to receive 0.5 to 1.5 inches of moisture this week, with heavy snow possible in southwestern Kansas into the northern Texas Panhandle and southeastern Oklahoma.
Cotton: May cotton futures rose 315 points to 130.01 cents per pound, the highest settlement for a nearby contract since July 2011. May cotton also posted a contract high at 131.71 cents. Cotton futures rallied to the highest levels in nearly 11 years behind strong demand, active buying from speculators and the crude oil market’s $7-plus rally. High oil prices make cotton substitute polyester more expensive. Recent USDA export sales data continued to convey solid demand for U.S. cotton.
Cattle: April live cattle dropped 45 cents to $140.05, while June live cattle fell 72.5 cents to $136.35. May feeder futures fell $1.70 to $165.75. Feeder cattle futures were pressured by strength in the corn market. Steady to firmer prices at the Oklahoma City feeder cattle auction helped pull some contracts off their lows into the close. Live steers averaged $139.10 last week, up 80 cents from the previous week, and traders generally have bullish hopes for this week’s cash market. Choice cutout values rose 34 cents today to $258.50, the highest daily average since Feb. 24. Select values jumped $1.85 to $252.50. Movement totaled 90 loads.
Hogs: June lean hogs rose $3.75 to $119.825. April hogs gained $1.225 to $100.625. Market bulls showed renewed power after prices slumped late last week. Today’s strong gains and a more bullish technical posture suggest more upside price potential in the near-term. High retail beef prices and the upcoming grilling season also inspired the hog market bulls today. April futures’ discount to the CME lean hog index is also encouraging buyers in hog futures. However, the wholesale pork market started the week on a soft note. Pork cutout values fell $3.34 today to $101.61, the lowest daily average since Feb. 10 and led by declines in hams and bellies. Movement totaled 306 loads. The CME lean hog index rose 59 cents to $101.36, the highest level since Aug. 31.
