After the Bell | October 12, 2022

Soybean futures jump near two-week highs after USDA unexpectedly cuts crop outlook; corn little-changed, wheat lower.

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

Corn: December corn ended unchanged at $6.93. Corn ended mixed after USDA’s Crop Production and Supply and Demand reports carried few major surprises. USDA lowered its U.S. corn production forecast by 49 million bu. to 13.895 billion bu., smaller than analyst expectations for a cut closer to 59 million bu. The estimated average U.S. yield was lowered 0.6 bu. to 171.9 bu. per acre.

Soybeans: November soybeans surged 19 3/4 cents to $13.96, the contract’s highest close since Sept. 29. December soymeal rose $8.30 to $414.30. December soyoil rose 12 points to 65.59 cents. USDA unexpectedly lowered its estimate for the U.S. soybean crop, fueling concern over tight supplies with the country’s stockpiles already heading for a seven-year low. Farmers will harvest an estimated 4.313 billion bu., down 65 million bu. from a September forecast and contrasting with trade expectation for a modest increase of about 3 million bu.

Wheat: December SRW wheat fell 18 3/4 cents to $8.82 1/4. December HRW wheat dropped 20 3/4 cents to $9.70. Prices closed nearer the session lows today. December spring wheat fell 18 1/2 cents to $9.66 3/4. Wheat futures extended Tuesday’s losses after USDA, in its monthly Supply and Demand update today, made a lower than expected reduction in 2022-23 U.S. ending stocks.

Cotton: December cotton futures dropped 394 points at 84.92 cents and near the session low. USDA lowered its U.S. cotton crop estimate by 20,000 bales from last month, to 13.81 million bales, smaller than trade expectations for a reduction of 49,000 bales.

Cattle: December futures fell 12.5 cents to $148.45. November feeder futures advanced 47.5 cents to $176.675. Cattle futures posted a mixed performance amid uncertainty over the direction of cash trade. Choice beef cutout values fell 9 cents to $246.66, near an 18-month low posted in late September, but movement was strong at 128 loads.

Hogs: December hogs rose $1.175 to $80.70, the highest since Sept. 23. Futures extended a rally as stronger technicals overshadowed mixed signals from the cash market. The CME lean hog index fell 3 cents to $92.95 (as of Oct. 10) and is expected to drop another 46 cents Thursday. However, wholesale pork extended recent strength, as pork cutout values rose 79 cents to a three-week high of $103.94.