After the Bell | June 30, 2022

December corn sinks to four-month low after USDA raises acreage estimate; soybeans, wheat also lower.

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

Corn: December corn futures plunged 34 cents to $6.19 3/4, the contract’s lowest close since $6.12 on March 3. Corn ended near a four-month low after USDA, in its Acreage Report today, boosted its projection for 2022 U.S. corn plantings to 89.921 million ac., up from 89.49 million ac. in a March forecast and above the average analyst projection of about 89.861 million ac.

Soybeans: November soybeans fell 20 1/4 cents to $14.58. August soyoil sank 249 points to 67.01 cents and August soymeal rose $6.20 to $435.50. USDA lowered its estimate for 2022 U.S. soybean plantings from 90.966 million ac. in March to 88.325 million ac., under expectations averaging 90.446 million. But USDA also hiked estimated June 1 U.S. soybean stockpiles more than expected.

Wheat: September SRW wheat tumbled 46 cents to $8.84 and September HRW wheat fell 39 1/2 cents to $9.51 3/4, both near four-month closing lows. September spring wheat fell 38 1/2 cents to $9.90. Wheat fell following reports Ukraine shipped its first grain from its Black Sea ports in months, while USDA’s Acreage and quarterly Grain Stocks reports held few surprises.

Cotton: December cotton gained 136 points to 98.84 cents per pound. Cotton prices rose even after USDA raised its estimate for 2022 U.S. cotton plantings to 12.478 million ac., up 244,000 acres from a March forecast and higher than analysts’ expectations for 12.3 million ac.

Cattle: August live cattle rose 40 cents to $132.575, while August feeder cattle rose $2.45 to $176.225. Nearby live cattle rebounded from an initial drop to four-week lows amid corrective buying and signs of modest strength in cash markets around mid-week. USDA-reported live steers averaged $145.85 this week through this morning, $1.30 above last week’s average.

Hogs: August lean hog futures fell $1.475 at $102.10, the contract’s lowest closing price since $98.975 on May 12. Hog futures sank to a seven-week closing low amid continued pressure from eroding cash market fundamentals. The CME lean hog index is expected to fall 42 cents tomorrow to $100.84. Pork cutout values fell $1.31 to $107.25 on light movement of 222 loads.