After the Bell | July 11, 2022
Corn: December corn firmed 5 1/2 cents, closing at 6.29, only 2 3/4 cents off the low of the day. Corn gapped higher in the overnight trade, with the December contract reaching a high of 6.58 1/2 on concerns of returning hot, dry weather conditions throughout the Corn Belt by the latter part of the week and continuing through next week. But outside markets curbed buyer interest as crude oil futures fell and the U.S. dollar index surged to a new 20-year high. This coupled with pre-report positioning before the release USDA’s July WASDE Report on Tuesday produced a low-range close.
Soybeans: November soybeans closed up 8 1/2 cents at $14.05 and nearer the session low. September soybean meal closed down $1.30 at $411.00 and near the session low. September bean oil closed up 93 points at 62.36 cents and near mid-range. Soy complex bulls were out of the gate in strong fashion overnight, but as the trading day progressed the bulls faded badly amid negative outside markets.
Wheat: September SRW wheat closed down 35 cents at $8.56 1/2. September HRW wheat closed down 30 1/2 cents at $9.15 1/4. Prices closed near the session lows. Spring wheat futures finished 25-plus cents lower, with the September contract down 28 cents to $9.63 3/4. Wheat futures fell victim to a big surge in the U.S. dollar index to another 20-year high, prompting further worries about already slack U.S. wheat export demand. The market also lost more ground when the corn and soybean futures backed well off their overnight highs and finished near their session lows.
Cotton: Cotton futures finished below opening levels but in the upper half of today’s range. December cotton dropped 79 points to 94.84 cents. Cotton futures were pressured by outside markets as the U.S. dollar surged to a new 20-year high and crude oil faced pressure. In addition, the stock market traded lower and recession concerns flared amid outbreaks of Covid in China.
Cattle: Live and feeder cattle futures rallied into the close to post strong gains and finished near session highs. August live cattle firmed $2.20 to $136.15. August feeders strengthened $3.15 to $174.875. Cattle futures opened under pressure from negative outside markets. Recession concerns tied to new outbreaks of Covid in China and a surging U.S. dollar weighed on the U.S. stock market and spilled over to cattle. Strength in the corn market also weighed on cattle futures for much of the day. But the market caught a bid late in the day
Hogs: July lean hog futures closed up 30 cents at $113.15. August hogs closed down 80 cents at $108.375 and closed near mid-range. Deferred lean hog futures contracts today were pressured by a strong U.S. dollar index that surged to a 20-year high today, prompting worries about reduced export demand for U.S. pork. There are also ideas the cash hog market is close to or has put in a seasonal top.
