After the Bell | May 5, 2022

Winter wheat extends rally as Plains weather, smaller India crop inflame supply concerns; corn and soybeans firmer.

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

Corn: July corn futures rose 3 1/4 cents to $7.97 1/2, while December futures rose 2 1/4 cents to $7.38 1/2. Corn futures climbed in sympathy with a rally in the wheat market. Delayed U.S. corn planting remains supportive for futures, though warmer, drier conditions are expected next week in the Midwest.

Soybeans: July soybeans rose 6 1/2 cents to $16.47. July soymeal rose $1.70 to $419.90. July soyoil fell 58 points to 81.85 cents. USDA reported net weekly U.S. soybean sales at 734,600 MT for 2021-22, up 53% from the previous week and up 28% from the four-week average

Wheat: July SRW wheat rose 30 cents to $11.06 1/2, the highest closing price since April 19. July HRW wheat soared 53 3/4 cents to $11.77. July spring wheat rose 32 1/2 cents to $12.09 3/4, a lifetime-high close for the contract. Wheat surged sharply for a second straight session on concern a smaller India crop will further tighten a global balance sheet that’s already in upheaval from the war in Ukraine.

Cotton: July cotton fell 600 points to 148.76 cents per pound. Cotton futures fell under heavy profit taking pressure after nearby contracts posted an 11-year high Wednesday. A selloff in U.S. stocks and a surge in the U.S. dollar index to a 20-year high pressured cotton.

Cattle: June live cattle fell $1.05 to $133.775, the contract’s lowest settlement since a seven-week closing low April 29. August feeder cattle fell $1.825 to $174.375. Live cattle fell for a second session as a slumping wholesale beef market indicates high prices are curbing domestic beef demand. Choice cutout values plunged $4.56 today to $255.18, near an eight-week low. Movement was again strong at 159 loads.

Hogs: June lean hog futures rose $1.975 to $107.075, the contract’s highest closing price since April 28. Hog futures extended Wednesday’s rebound amid ideas the market has established a short-term bottom and is heading into a period of seasonal strength based on grilling demand. A jump in wholesale pork prices may have encouraged further corrective buying in futures. Pork cutout values rose $2.44 today to $106.27 behind a gain of nearly $12 in bellies. Movement remained relatively slow at 265 loads.