After the Bell | March 22, 2022
Corn: May corn futures fell 3 1/4 cents to $7.53. December corn gained 6 cents to $6.70 and posted a contract high for the second day in a row, hitting $6.70 3/4. Bear spreading weighed on nearby futures while supporting deferred contracts as choppy and sideways price action continued. The wheat market and the Russia/Ukraine war remained the primary trade focus, with wheat futures retreating from an overnight rally and lending some spillover pressure to corn. Nearby corn futures were also pressed by expectations favorable growing conditions in Brazil will benefit that country’s safrihna crop. The U.S. could be planning to donate around 400,000 MT of emergency food aid to Ukraine, sources reported.
Soybeans: May soybeans rose 5 1/2 cents to $16.96 1/2, a lifetime-high close for the contract for the second straight session. May soymeal fell $4.50 to $476.80 per ton. May soyoil rose 83 points to 74.54 cents per pound. Nearby soybeans faded from an overnight rise to near two-week highs but sustained modest gains with support from fresh export business. Early today, USDA reported a daily soybean sale of 240,000 MT for delivery to “unknown destinations” during the 2021-22 marketing year. Before today, USDA hadn’t reported a daily soybean sale from China or unknown destinations since March 11.
Wheat: May SRW wheat fell 1 cent to $11.18 1/4, after climbing overnight to a nearly two-week high at $11.69 1/4. May HRW rose 3 1/4 cents to $11.16 1/2, the contract’s highest close since March 15. March spring wheat gained 7 cents to $10.95 3/4. Nearby HRW and SRW futures faded from overnight gains as reports of much-needed precipitation across a large section of the central U.S. Plains contributed to profit-taking pressure. Rains ranging from 0.25 inch to more than 2 inches fell over most of Oklahoma, the eastern two-thirds of Kansas and the Texas Panhandle over the past day, World Weather said.
Cotton: May cotton futures edged up 3 points to 130.04 cents per pound, a lifetime-high close for the contract. Export demand for U.S. cotton remains strong and traders are likely anticipating large sales again in Thursday’s weekly USDA Export Sales report. Bears may believe the comparatively slow shipments pace will eventually force USDA to trim its export forecast for the 2021-22 crop year (which ends July 31). Strength in U.S. equities contributed to cotton futures strength.
Cattle: June live cattle fell 65 cents to $135.70. May feeder cattle futures fell 32.5 cents to $165.425. Live cattle futures were burdened by concern over beef demand in a potential "stagflationary" environment. Such worries are likely overdone, given the historically firm performance of the cattle and hog markets during previous recessions. Little cash cattle trade has happened yet this week, with the bulk of activity not likely until Friday, when USDA releases its next monthly Cattle on Feed Report. Wholesale beef continued a firm tone, with Choice cutout values rising $1.47 to $259.97, near a one-month high. Movement was strong at 125 loads.
Hogs: June lean hogs rose 25 cents to $120.075, closing near the session high as bulls recovered from early losses to extend yesterday’s gains and put the $122.00 contract high posted March 16 in sight. Cash market fundamentals remain strong, suggesting further gains in futures and cash markets. The CME lean hog index price quote for tomorrow is projected to drop 3 cents to $101.77, down from a nearly seven-month high previously. Pork cutout values surged $5.10 today to $106.71, near a two-week high and led by a gain of nearly $13 in hams. Movement totaled 273 loads. Hog slaughter so far this week totaled 947,000 head, up 2,000 head from the first two days last week but down 5,000 head from the same period in 2021.
