After the Bell | August 19, 2022

Corn, soybean futures end firmer but down for the week as traders await Midwest Crop Tour; wheat up in corrective bounce.

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

Corn: December corn rose 7 1/2 cents to $6.23 1/4, down 19 cents for the week. Corn posted modest gains but not enough to offset the sharp declines early this week. USDA’s weekly crop ratings Monday will be one key to next week’s price direction, and traders will closely follow the annual Pro Farmer Midwest Crop Tour to determine whether strong prospects in the eastern Corn Belt can overcome dryness damage in western areas.

Soybeans: November soybeans fell 1 1/4 cent to $14.04, down 50 1/4 cents for the week. September soymeal fell 70 cents to $448.70. September soyoil rose 164 points to 67.90 cents. Near-term Midwest weather outlooks lean largely bearish with rain expected to reach many areas, but western parts of the regions remain too dry.

Wheat: September SRW rose 21 3/4 cents to cents to $7.53 1/4, down 52 3/4 cents for the week. September HRW wheat rose 32 1/4 cents to $8.44 3/4. September spring wheat rose 22 cents to $8.74 3/4. Corrective buying boosted wheat after a sell-off earlier this week sent SRW to a 10-month low. Increased grain shipments from Ukraine and a resurgent U.S. dollar may keep weighing on wheat.

Cotton: December cotton rose 331 points to 116.01 cents, up 242 points for the week. Cotton posted a steep weekly rally on expectations rains expected for Southern Plains growing areas will arrive too late to help the parched U.S. crop, which USDA estimated at a 13-year low.

Cattle: October live cattle rose 50 cents to $145.25, up 75 cents for the week. September feeders fell 52.5 cents to $184.75, still up $1.375 for the week. Strong cash prices lifted live cattle futures this week, as live steers averaged $146.76 through this morning, up $2.37 from last week’s average. But the market may face pressure Monday after USDA estimated July feedlot placements at 1.8% above year-earlier levels, compared to expectations for a decline of 1.5%.

Hogs: October lean hog futures fell 17.5 cents to $93.125, down $6.90 for the week and the contract’s lowest closing price since July 5. Futures extended a week-long sell-off on growing beliefs the cash market has peaked and is heading into a seasonally weak period. Today’s CME lean hog index fell 2 cents to $120.60, the sixth drop in the past seven sessions, and is expected to drop another 31 cents Monday. Choice pork cutout values fell $2.76 today to $117.15, down $4.68 from the end of last week and near a six-week low.