After the Bell | October 17, 2022

Corn futures drop to lowest close in over a week amid harvest pressure, lackluster exports; cattle, hog futures near four-week highs on cash strength.

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

Corn: December corn fell 6 1/4 cents to $6.83 1/2, the contract’s lowest close since Oct. 7. The expanding U.S. harvest and concern over export demand weighed on prices. USDA reported 448,423 MT (17.7 million bu.) of corn inspected for export for the week ended Oct. 13, down from 457,366 MT the previous week but within trade expectations. Late today, USDA reported 45% of the U.S. corn crop was harvested as of Sunday, up from 31% a week earlier but 1 percentage point under trade expectations.

Soybeans: November soybeans rose 1 1/2 cents to $13.85 1/4, though deferred contracts ended with small declines. December soymeal fell 10 cents to $411.00 and December soyoil. The soy complex ended mixed as pressure from the U.S. harvest and an outlook for strong South American production muted bullish impact from signs of strong exports. USDA reported the soybean crop was 63% harvested as of Sunday, up from 44% a week earlier and above analysts’ expectations for about 60%.

Wheat: December SRW wheat rose 1 1/4 cents to $8.61. December HRW wheat fell 1/4 cent to $9.52. December spring wheat rose 1 cent to $9.55 1/4. Wheat failed to sustain overnight gains and ended mixed, with some pressure from reports the United Nations said discussions will continue on extending and expanding a U.N.-brokered deal to continue grain shipments from Ukraine’s Black Sea ports. USDA reported the winter wheat crop was 69% planted as of Sunday, up from 55% a week earlier and slightly ahead of trade expectations for 68%.

Cotton: December cotton fell 6 points to 83.09, the contract’s lowest close since Oct. 6. Cotton futures traded marginally higher throughout most of the session on low volumes as the U.S. dollar fell sharply, equities surged higher and crude oil stabilized.

Cattle: December live cattle rose $1.425 to $149.20, the contract’s highest closing price since Sept. 22. January feeder cattle rose $2.15 to $177.25. Live cattle futures climbed near a four-week high behind strengthening charts and expectations cash prices will extend the past two weeks’ strength.

Hogs: December lean hog futures rose $2.70 to $84.95, the contract’s highest close since Sept. 22. Hog futures extended the sharp rally over the past two weeks behind bullish technicals and signs of improvement in cash market fundamentals. The CME lean hog index rose 42 cents to $93.09, the third gain in the past five days, and is expected to rise another 26 cents Tuesday. Pork cutout values extended recent strength and rose $1.64 to $103.50 on movement of 315 loads.