After the Bell | November 8, 2022

Corn falls to five-week low on weak technicals, soft demand; soybeans, wheat lower with USDA reports ahead.

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

Corn: December corn fell 8 1/4 cents to $6.67 1/2, the contract’s lower close since September 27. Corn futures fell to the lowest levels in over five weeks as eroding technicals and soft export demand encouraged sellers ahead of Wednesday’s USDA’s Crop Production and Supply & Demand Reports. USDA’s Nov. 9 Crop Production and Supply & Demand Reports are expected to feature only minor adjustments. USDA is expected to lower its estimate for U.S. corn production to 13.887 billion bu. from 13.895 billion bu., based on a Reuters survey of analysts.

Soybeans: January soybeans fell 3 3/4 cents to $14.46 1/2. December soyoil fell 130 points to 75.03 cents. December soymeal gained 30 cents to $419.30. Soybeans gained early support from fresh export business but faded as crude oil tumbled. USDA is expected modestly increase its estimate for U.S. soybean production to 4.315 billion bu. from 4.313 billion bu., based on the Reuters survey.

Wheat: December SRW wheat fell 18 cents to $8.27 3/4, the contract’s lowest close since Sept. 6. December HRW wheat fell 11 1/2 cents to $9.45 3/4. December spring wheat fell 9 3/4 cents to $9.50 1/2. SRW wheat futures sank to a nine-week low as weak technicals combined with a slump in crude oil and a lack of fresh news on the Ukraine/Russia export deal to encourage sellers.

Cotton: December cotton rose 19 points to 87.68, the highest close since Oct. 11. Cotton rose a sixth straight session as the market extended a sharp, short-covering-driven rally from near two-year lows last month. A pullback in the U.S. dollar encouraged buyers.

Cattle: December live cattle ended unchanged at $153.05, while January feeders fell 2.5 cents to $179.90. Live cattle failed to generate significant followthrough buying from strength Monday, though downside remains limited by a robust cash market. Choice beef cutout values rose 39 cents to $264.94, near a three-month high reached last week. Movement was strong at 151 loads.

Hogs: December lean hogs fell $1.475 to $85.575. Hog gave back much of Monday’s rally amid ongoing softness in cash fundamentals and seasonally increasing supplies. The CME lean hog index fell 57 cents to $90.88, the lowest since Feb. 11, and Wednesday’s quote is expected to fall 60 cents. Pork cutout values fell $1.92 to $95.03, the lowest since early February.