After the Bell | November 9, 2022

Corn futures drop to two-month low after USDA boosts crop estimates; wheat also hits two-month low, soybeans firmer.

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

Corn: December corn fell 3 1/2 cents to $6.64 1/2, the contract’s lowest settlement since Aug. 26. Corn futures ended at the lowest levels in over two months after USDA raised its estimate for the U.S. crop more than expected. In its Crop Production Report, USDA estimated the crop at 13.93 billion bu., up 35 million bu. from an October forecast and about 43 million bu. above the average analyst estimate.

Soybeans: January soybeans rose 5 1/2 cents to $14.52. December soymeal fell $1.70 to $417.60. December soyoil rose 51 points to 75.54 cents. Soybean futures ended higher as demand optimism overshadowed USDA’s higher than expected production and supply forecasts. USDA hiked its U.S. soybean crop estimate a larger than expected 33 million bu., to 4.364 billion bu., and boosted the average U.S. yield to 50.2 bu. per acre from 49.8 bu. per acre.

Wheat: December SRW wheat fell 21 1/4 cents to $8.06 1/2, the contract’s lowest close since Sept. 1. December HRW wheat dropped 15 3/4 cents to $9.30. December spring wheat fell 12 1/4 cents to $9.38 1/4. Wheat futures tumbled on deteriorating near-term technicals and bearish outside markets, including a sharp gain in the U.S. dollar and sharp declines in crude oil.

Cotton: December cotton fell 118 points to 86.50 cents. Cotton futures fell for the first time in seven sessions after USDA raised its U.S. cotton crop estimate by 220,000 bales from last month to 14.03 million bales, contrary to expectations for a reduction.

Cattle: December live cattle fell $1.475 to $151.575, the contract’s lowest close since Nov. 2. January feeder cattle fell 25 cents to $179.65. Nearby live cattle ended at a one-week low on fading optimism over the cash market. Choice beef cutout values fell 27 cents to $264.67 on strong movement of 142 loads.

Hogs: December lean hog futures fell 30 cents to $85.275, though February and other 2023 contracts ended with small gains. Hog ended mixed following two-sided trade, with nearby December under pressure from soft technicals and eroding cash fundamentals as slaughter increases seasonally. Pork cutout values fell $1.02 to $94.12, the lowest daily average since Feb. 2. Movement was strong at 340 loads.