After the Bell | August 22, 2022
Corn: December corn futures rose 5 3/4 cents to $6.29, the highest closing price in a week. Corn futures rose a fourth straight day behind strength in soybeans and wheat and signs of stronger export demand. USDA reported 740,508 MT (29.2 million bu.) of corn inspected for export during the week ended Aug. 18, up from 539,336 MT the previous week and at the high end of trade expectations ranging from 450,000 to 850,000 MT. Traders also awaited reports from Pro Farmer scouts sampling corn and soybean fields across the seven Crop Tour states over the next four days. Late today, USDA reported the U.S. corn crop 55% in "good" or "excellent" condition as of Sunday, down from 57% a week earlier and below analysts' expectations the good-to-excellent figure would stay unchanged.
Soybeans: November soybeans surged 31 1/4 cents to $14.35 1/4, the contract’s highest closing price since Aug. 12. September soymeal rose $11.80 to $460.50. September soyoil rose 87 points to 68.77 cents. Soybean futures rallied to the highest settlement in over a week in a corrective recovery following last week’s sharp declines as traders continue to monitor varying weather across the Midwest. Pockets of dryness and a little late season crop stress will continue in portions of the U.S. Midwest during the next two weeks; however, most production areas will continue to experience a good enough environment to support crop development, World Weather said today. Only far west central and southwestern parts of the Corn and Soybean Belt will be dry enough for a little crop stress.
Early today, USDA reported 686,583 MT (25.2 million bu.) of soybeans inspected for export during the week ended Aug. 18, down from 768,328 MT the previous week and within trade expectations. USDA late today reported 57% of the U.S. soybean crop in good-to-excellent condition as of Sunday, down from 58% a week earlier and one percentage point under analysts' expectations.
Wheat: December SRW wheat rose 17 1/4 cents to $7.88 1/4. December HRW wheat rose 19 cents to $8.66. December spring wheat rose 13 1/2 cents to $9.00 1/2. Wheat futures rose on short-covering and corrective buying in the wake of last week’s slump to multi-month lows. Strength in corn and soybean markets also added support. USDA today reported 594,273 MT of U.S. wheat inspected for export during the week ended Aug. 18, up from 389,914 MT the previous week and at the high end of trade expectations. USDA late today reported U.S. spring wheat crop conditions at 64% “good” to “excellent,” unchanged from the previous week and meeting expectations. Spring wheat harvest advanced 17 points to 33% complete, still behind the 54% five-year average.
Cotton: December cotton fell 187 points to 114.14 cents per pound. Cotton was pressured by bearish outside market forces, including a surging dollar and weakness in crude oil and U.S. stocks. Commodity traders await the Federal Reserve’s annual Jackson Hole, Wyoming, symposium later this week for signals on the outlook for interest rates and the economy. Weather in U.S. cotton country also leans bearish after heavy rain fell in Texas in recent days, though the moisture may have arrived too late to help much of the drought-beleaguered crop.
Cattle: Cattle futures rebounded after dropping initially on Friday’s bearish Cattle on Feed report. October live cattle fell 75 cents to $144.50. September feeders dipped 40 cents to $184.35. Recent cash strength and solid morning gains in wholesale values fueled the reversal. Choice cutout values rose $1.90 early today, while Select climbed $2.39. The unusually wide Choice/Select spread, at nearly $26, indicates market-ready fed cattle supplies remain tight, implying the potential for continued cash and futures strength through late summer. USDA reported U.S. beef stocks fell 6.0 million pounds during July to 510.8 million lbs., contrasting with an average drop of 22.2 million lbs. the previous five years and a sign of firm demand.
Hogs: October lean hogs rose 85 cents to $93.975. Futures posted a corrective bounce following last week’s steep declines, which were driven partly by anticipation of a substantial seasonal decline in cash prices. Pork cutout values rose $3.86 early today to $121.01, suggesting recent price weakness compelled retailers to step up purchases and providing some support for futures. The next CME lean hog index is expected to fall 31 cents to $119.98. Hog futures may gain support Tuesday following USDA’s Cold Storage report, which listed ending July U.S. pork stockpiles at 530.1 million pounds, down 8.6 million pounds from a month earlier.
