After the Bell | July 7, 2022

Wheat futures jump sharply to lead grains, soy complex higher as markets continue corrective bounce from recent slump.

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

Corn: December corn futures rose 11 1/4 cents to $5.96 1/4, after earlier rising as high as $6.08 3/4. Corn futures rose a second day as corrective buying and short-covering drove a rebound from five-months lows earlier this week. Traders may also be restoring some weather premium into prices amid forecasts for drier weather in the Midwest during mid-July.

Soybeans: November soybeans rallied 42 3/4 cents to $13.65 1/2. August soyoil soared 306 points to 61.62 cents per pound. August soymeal surged $7.90 to $423.50 per ton. The soy complex was supported by strength in crude oil and U.S. stocks, which suggested easing recession concerns.

Wheat: September SRW wheat rose 32 cents to $8.36 1/2. September HRW wheat rose 37 3/4 cents to $8.89 1/4. September spring wheat rose 48 1/4 cents to $9.34 1/2. Wheat rose on short covering and corrective buying after prices hit four-month lows earlier this week.

Cotton: December cotton rose 327 points to 91.88 cents per pound. Cotton futures rose behind strength in equity markets that encouraged buying across the commodity sector, suggesting recession worries have faded slightly. Bullish cotton traders may suspect the market’s recent price slump may boost U.S. export sales.

Cattle: August live cattle rose 5 cents to $134.55. August feeder cattle fell $1.025 to $176.05. Live cattle rose a second day on firmer cash cattle prices and continued strength in wholesale beef. Choice beef cutout values rose 2 cents to $268.07, up $4.25 since the end of last week, while movement was strong at 125 loads. USDA-reported live steers averaged $149.87 this week through early today, up sharply from last week’s $146.15 average.

Hogs: August lean hogs rose 30 cents to $109.50, the highest close since June 21. Nearby hogs extended sharp gains the previous two sessions as technical strength and easing concern over pork demand outweighed weakness in cash benchmarks. Pork cutout values rose 69 cents to $112.19, though movement, at 287 loads, continued to slow slightly.