After the Bell | May 12, 2022

New-crop corn futures rally after USDA cuts U.S. yield estimate; wheat surge on tighter supplies.

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

Corn: July corn futures rose 3 cents to $7.91 1/2. December futures surged 17 1/4 cents to $7.53, a lifetime high settlement for the contract. New-crop futures led corn higher after USDA lowered its yield projection more than expected. In its monthly Supply and Demand Report, USDA dropped its 2022-23 U.S. corn yield estimate to 177 bu. per acre, down 4 bu. from a previous trendline forecast and unchanged from 2021-22. Analysts expected a yield closer to 179.6 bu. per acre.

Soybeans: July soybeans rose 7 cents to $16.13 3/4, a high close for the week, while new-crop November futures gained 8 1/4 cents to $14.80 1/2. July soymeal fell $1.90 to $396.00. July soyoil fell 93 points to 82.52 cents. Nearby soybean futures rose for a third consecutive day as a tightening global grain supply outlook overshadowed USDA’s projection for a record soybean crop and higher supplies.

Wheat: July SRW wheat rose 65 3/4 cents to $11.78 3/4, a two-month high. July HRW wheat rose 69 1/2 cents to $12.70, while nearby HRW posted a 14-year high. July spring wheat rose the daily 60-cent limit to $13.16, a lifetime-high close. Futures rallied after USDA’s initial U.S. winter wheat crop forecast came in 103 million bu. below last year and 65 million bu. below trade expectations.

Cotton: July cotton rose 193 points to 145.53 cents per pound, while new-crop December surged 292 points to 127.67 cents. USDA’s Supply and Demand report encouraged market bulls. USDA projected 2022-23 U.S. cotton production at 16.5 million bales, down from 17.52 million in 2021-22.

Cattle: June live cattle fell $1.925 to $131.65, the lowest closing price since early October. August feeder futures fell $3.475 to $166.525. Cattle futures sank to seven-month lows on weaker cash prices and concern costly beef is hurting demand.

Hogs: June lean hogs fell $3.375 at $97.475, the contract’s lowest closing price since Jan. 11. Hog futures extended a sharp slump on bearish cash market fundamentals, demand concerns and weak technicals. Pork cutout values fell 89 cents to $98.60, the lowest daily average since Feb. 8, though movement was stronger at 337 loads.