After the Bell | December 19, 2022

Soybean futures fall near two-week low as rain outlook improves for South America; corn also lower, wheat mixed.

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

Corn: March corn fell 5 3/4 cents to $6.47 1/4, the contract’s lowest close since $6.44 on Dec. 9. Corn fell as weekend rains in South America and an improved moisture outlook eased concerns over potential crop shortfalls from extended dryness.

Soybeans: March soybeans fell 20 1/4 cents to $14.60 3/4, the contract’s lowest close since Dec. 6. March soymeal fell $14.10 to $446.10, also near a two-week low. March soyoil rose 95 points to 63.41 cents. Argentina’s rainfall outlook has improved, with rain expected Friday into Sunday that will boost topsoil moisture and reduce crop stress, World Weather Inc. said.

Wheat: March SRW fell 5 cents to $7.48 1/2, the contract’s lowest close since Dec. 9. March HRW wheat fell 1/2 cent to $8.43 1/2. March spring wheat fell 1 1/4 cent to $9.08 1/4. SRW wheat futures fell amid heightened global recession fears and ongoing pressure from poor exports. HRW futures were supported by concern that frigid temperatures in the U.S. Plains this week could damage the crop.

Cotton: March cotton rose 216 points to 84.08 cents, the contract’s highest close since Dec. 6. Cotton settled near a two-week high on support from bullish outside markets, as crude oil strengthened amid optimism over the Chinese economy and the U.S. dollar weakened.

Cattle: February live cattle rose 27.5 cents to $156.05. January feeder cattle fell $1.675 to $182.10. Live cattle rose behind strength in wholesale beef and expectations cash prices will remain supported by tight supplies even as the holidays limit packer buying. Live steers averaged $155.69 last week, down just 10 cents from last week’s average and near the 7 1/2-year high posted earlier this month.

Hogs: February lean hogs fell 7.5 cents to $85.70, after earlier rising to $86.55, the highest intraday price since Dec. 7. Nearby hog futures were pressured by mild profit-taking and corrective selling following Friday’s rally, as well as continued weakness in cash fundamentals. The CME lean hog index fell 33 cents to $81.55 (as of Dec. 15), ending a string of three consecutive increases, and is expected to drop 71 another cents Tuesday to $80.84, the lowest since late January.