After the Bell | September 12, 2022
Corn: December corn rose 11 cents to $6.96, the contract’s highest close since June 21. Corn rallied near a three-month closing high after USDA lowered its estimate for the U.S. corn crop more than expected, further illustrating the impact of drought in parts of the Midwest this summer. USDA, in its monthly Crop Production Report today, reduced the estimated crop by 415 million bu. to 13.944 million bu., down 1.171 billion bu., or 7.7%, from last year’s crop and the smallest since 2019.
Late today, USDA reported 53% of the U.S. corn crop in "good" or "excellent" condition as of Sunday, down from 54% a week earlier and 1 percentage point below trade expectations. USDA said 5% of the crop was harvested, up from the 4% average for the past five years.
Soybeans: November soybeans soared 76 cents to $14.88 1/4, the contract’s highest closing price since $15.10 1/2 on June 10. October soymeal surged $25 to $439.80. October soyoil rose 166 points to 68.34 cents. November soybeans hit a three-month closing high after USDA cut its crop production estimate more than expected. USDA estimated the U.S. soybean crop at 4.378 billion bushels, with an average yield of 50.5 bu. per acre. Analysts expected production of about 4.496 billion bu. and an average yield of 51.5 bushels per acre.
Late today, USDA reported 56% of the soybean crop in good-to-excellent condition as of Sunday, down from 57% a week earlier and 1 percentage point under trade expectations.
Wheat: December SRW wheat fell 10 3/4 cents at $8.58 3/4. December HRW wheat dropped 2 1/4 cents at $9.27. December spring wheat futures fell 1 cent to $9.26 1/2. USDA, in its monthly Supply and Demand Report, raised estimated ending global wheat stocks for 2022-23 more than expected, to 268.57 MMT, up 1.23 MMT from an August estimate. USDA said 85% of the spring wheat crop was harvested as of Sunday, up from 71% a week earlier and 2 percentage points above expectations.
Cotton: December cotton rose 87 points to 105.71 cents, the contract’s highest settlement since Sept. 1. Cotton futures rose as strength in crude oil and U.S. equities helped offset USDA’s higher than expected increase in its U.S. cotton production forecast. USDA hiked the estimated crop by 1.262 million bales from August to 13.832 million bales. Analysts expected an increase of about 200,000 bales.
Cattle: October live cattle rose 7.5 cents to $145.75, the contract’s highest close since Aug. 17. October feeder cattle fell $2.45 to $183.125. Nearby October live cattle rose amid ideas the cash market is near a short-term bottom and may climb as supplies of market-ready animals tighten this fall. Choice beef cutout values rose $1.68 to $258.94, up from a four-month low. Movement totaled 97 loads.
Hogs: October lean hogs fell $1.30 to $91.875. Eroding cash hog market fundamentals continued to pressure hog futures. The CME lean hog index fell 69 cents to $99.57, a four-month low, and Tuesday’s expected quote (for Sept. 9) is down another $1.28 to $98.29. Pork cutout values rose $2.84 to a three-week high of $105.71. Movement was strong at 325 loads.
