After the Bell | October 31, 2022

After the Bell | October 31, 2022 Grains rally after Russia withdrawal from Ukraine export agreement fuels supply concerns; soybeans also higher.

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

Corn: December corn rose 10 3/4 cents to $6.91 1/2, the highest closing price since Oct. 13. Corn gapped higher at the start of overnight trading after Russia suspended participation in the Ukraine export agreement, exacerbating concern over tight global grain supplies. Late today, USDA reported the U.S. corn harvest at 76% complete as of Sunday, up from 61% a week earlier and ahead of the 64% average for that date the previous five years. Analysts expected harvest to be about 75% complete.

Soybeans: January soybeans rose 19 1/4 cents to $14.19 1/2, the contract’s highest close since Sept. 29. December soymeal rose $2.70 to $428.10, the highest close since Sept. 22. December soyoil gained 142 points to 73.21 cents. The soy complex joined a rally in wheat amid escalating concern over global grain and oilseed supplies. USDA said 88% of the U.S. soybean crop was harvested as of Sunday, up from 80% a week earlier and above the 78% average for the previous five years.

Wheat: December SRW wheat rose 53 cents to $8.82 1/4 and December HRW wheat gained 53 3/4 cents to $9.78 3/4, both the highest settlements since Oct. 13. December spring wheat rose 36 1/4 cents to $9.81 1/4. Wheat soared following Russia’s weekend announcement it suspended its participation in an agreement allowing grain exports from Ukraine’s Black Sea ports. USDA, in its initial national ratings for the 2022-23 U.S. winter wheat crop, pegged the crop at 28% “good” or “excellent” as of Sunday, far under expectations for 41% and a record low.

Cotton: December cotton fell 11 points to 72 cents, the lowest close for a nearby contract since December 2020, based on continuation charts. Cotton fell to a 22-month low as the U.S. dollar strengthened for the third consecutive session and crude oil futures fell. Global recession fears continue to burden prices, driven in part by weaker-than-expected Chinese economic data.

Cattle: December live cattle fell 52.5 cents to $152.475, the contract’s lowest close since Oct. 21. January feeder cattle fell 92.5 cents to $179.45, the lowest close since Oct. 20. Live cattle fell for a third consecutive session as the market extended corrective declines from last week.

Hogs: December lean hogs fell $1.175 at $84.925, the contract’s lowest close since Oct. 14. Nearby hogs took followthrough profit-taking pressure amid signs of weakening cash fundamentals. The latest CME lean hog index fell 38 cents to $93.77 (as of Oct. 27), the third straight daily decline.