After the Bell | May 2, 2022

Soybean futures fall sharply as soymeal, soyoil tumble; winter wheat futures drop on wetter Plains outlook.

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

Corn: July corn fell 10 cents to $8.03 1/2, while December corn fell 9 cents to $7.42 1/4. Corn futures were pressured by heavy spillover from the soy complex. Cool, wet weather in the Midwest this week is expected to keep corn planting behind schedule. Late today, USDA reported 14% of the U.S. corn crop was planted as of Sunday, up from 7% a week earlier but well-below the 33% average for the previous five years.

Soybeans: July soybeans fell 39 1/2 cents to $16.45 1/4, the lowest closing price since April 11. July soymeal dropped $1.40 to $430.90 per ton. July soyoil fell 409 points to 80.09 cents. Soyoil led the soy complex lower amid talk of reduced oilseed use for biodiesel in Germany, which sparked concerns something similar could occur in other countries, including the U.S. The U.S. soybean crop was 8% planted as of Sunday, meeting analysts’ expectations but below the five-year average of 13%.

Wheat: July SRW wheat fell 1/4 cent to $10.55 1/2. July HRW wheat fell 7 3/4 cents to $10.98, a three-week closing low. July spring wheat rose 1 3/4 cents to $11.67 3/4. Winter wheat futures were pressured by expectations recent rainfall will bring relief to parched crops in the U.S. Plains, though the crop remains in poor shape. USDA reported 27% of the winter wheat crop in “good” or “excellent” condition through Sunday, unchanged from the previous week’s 34-year low.

Cotton: July cotton rallied 518 points to 150.81 cents per pound, the highest close for a nearby contract since mid-2011. Cotton futures surged near an 11-year high amid concern drought in key U.S. growing areas, such as western Texas, will stunt early crop development.

Cattle: August feeder cattle surged $5.80 to $174.075, while June live cattle strengthened $2.55 to $135.20. Feeder cattle were aided by sharp losses in the corn market, which helped spur corrective buying that also lifted live cattle. Wholesale beef prices firmed but movement was slow. Choice cutout values gained $1.77 to $262.55. Cash cattle averaged $143.34 last week, up 32 cents from the previous week.

Hogs: June lean hogs fell $1.40 to $104.975, the lowest settlement since Jan. 21. Hog futures remained under pressure as slumping technicals fueled chart-based selling by speculators. Futures traders disregarded a sharp upturn in wholesale pork, as cutout values rose $2 to $106.58 on strength in most cuts. Movement totaled 290.52 loads.

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