After the Bell | May 25, 2022

Winter wheat futures end lower but recover much of initial slump; new-crop corn falls to two-week low on planting progress.

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

Corn: July corn futures rose 1/2 cent to $7.72 1/4 after dropping near a seven-week low earlier, while December futures fell 2 cents to $7.23 1/4, a two-week low. Corn futures erased much of an early downturn behind a wheat market rebound and strong demand fundamentals. USDA’s weekly export sales report Thursday is expected to show net U.S. corn sales of 150,000 to 500,000 MT for 2021-22 and 200,000 to 800,000 MT for 2022-23.

Soybeans: July soybeans fell 12 cents to $16.81, the lowest close in a week. July soymeal fell $2.90 to $424.20 per ton. July soyoil fell 120 points to 78.92 cents per pound, the contract’s lowest closing price since April 20. The soy complex took spillover pressure from weak corn and wheat markets, as well as broader demand concerns, with China’s soyoil consumption expected to plunge amid Covid lockdowns.

Wheat: July SRW wheat fell 6 1/2 cents to $11.48 1/4, the contract’s lowest closing price since May 11. July HRW wheat fell 4 1/2 cents to $12.33 1/4. July spring wheat fell rose 3 1/4 cents to $12.80 1/2. Winter wheat recovered much of an early selloff that was sparked by reports Russia is ready to provide a humanitarian corridor for vessels carrying food to leave Ukraine in return for lifting of some sanctions.

Cotton: July cotton rose 362 points to 145.16 cents per pound, while December rose 83 points to 124.61. Cotton futures climbed as renewed optimism over the economic outlook contributed to a rebound in U.S. stocks

Cattle: June live cattle fell 42.5 cents to $132.30, while August feeders fell 20 cents to $167.95. An outlook for a third straight weekly decline in cash prices pressured futures. Choice beef cutout values fell 72 cents today to $262.93 but remain near a four-week high. Movement totaled 102 loads. USDA-reported live steers averaged $137.81 through this morning, down from last week’s $140.25 average.

Hogs: July lean hogs fell $1.10 to $107.95. Futures ended lower after initial gains were met by profit-taking, spurred in part by early weakness in today’s wholesale pork trade. Pork cutout values fell $1.17 today to $107.07, led by a drop of nearly $8 in bellies. Movement was light at 244 loads. But key cash fundamentals remain firm, with the CME lean hog index up 95 cents today to $103.03 (as of May 23), the fifth straight daily gain and the highest reading since March 30. The next quote is expected to rise 84 cents to $103.87.