After the Bell | April 20, 2022

Corn, soybean futures close near 10-year highs on demand optimism, Ukraine concern; winter wheat tumbles again.

Pro Farmer's After the Bell
Pro Farmer’s After the Bell
(Farm Journal)

Corn: July corn futures rose 9 3/4 cents to $8.09 1/2, while May futures rose 11 3/4 cents to $8.15 3/4, the highest settlement for a nearby contract since August 2012. Corn futures resumed a strong uptrend as strong near-term demand and supply disruptions from the Russia/Ukraine war encouraged bull spreading. Cool, wet conditions across much of the Midwest continue to delay fieldwork.

Soybeans: July soybeans rose 25 1/4 cents to $17.17, while May futures rose 30 1/4 cents to $17.46 3/4, the highest settlement for a nearby contract since September 2012. July soymeal surged $6.70 to $466.30 and July soyoil gained 55 points to 78.75 cents. Nearby soybeans rallied behind strength in soymeal, tightness in global vegetable oil supplies and optimism over U.S. export demand.

Wheat: July SRW wheat fell 11 1/2 cents to $10.97 1/2, the contract’s lowest closing price since April 11. July HRW wheat fell 6 3/4 cents to $11.69 1/2. July spring wheat ended unchanged at $11.72 1/4. Winter wheat futures tumbled to the lowest levels in over a week on followthrough profit-taking and technical pressure from a weak close yesterday.

Tomorrow’s USDA weekly export sales report is expected to show a modest pickup in demand. Net weekly U.S. wheat sales are expected to range from zero to 350,000 MT for 2021-22 and 150,000 to 400,000 MT for 2022-23, based on a Reuters survey.

Cotton: July cotton rose 55 points to 138.88 cents per pound, while new-crop December futures edged up 7 points to 121.02 cents. Cotton futures managed a modest bounce from yesterday’s sharp declines amid strength in crude oil, corn and other commodities and from weakness in the U.S. dollar.

Cattle: June live cattle rose $2.05 to $138.625, the contract’s highest closing price since Feb. 23. May feeder cattle rose $1.70 to $162.475. Live cattle closed near a two-month high behind strength in the cash market. Some light cash trade in the $140 to $141 range was reported in the Southern Plains yesterday, up $1 to $2 from that region’s prices last week. Choice beef cutout values fell $1.11 today to $268.82 but movement was strong at 137 loads.

Hogs: June lean hog futures fell $2.575 to $118.75. Hog futures fell sharply for the second straight day as technicals slipped further and weakness in wholesale pork stirred concern over demand. Pork cutout values rose $1.37 to $108.49, ending a sharp two-day drop, but retailers have often backed away recently from prices at or above $110.00. Today’s movement was below average at 253 loads.