After the Bell | September 1, 2022

Soybean futures extend sell-off as China lockdown fuels recession concerns; corn, wheat also drop sharply.

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

Corn: December corn fell 12 1/2 cents to $6.58. Corn fell a third straight day amid profit-taking following the early-week rally and pressure from outside markets, including crude oil and equities. New Covid lockdowns in China further fueled concern over the global economy.

Soybeans: November soybeans fell 27 3/4 cents to $13.94 3/4, the lowest close since Aug. 17. October soymeal rose $1.90 to $422.60, while October soyoil plunged 363 points to 65.27 cents. Soybeans fell for the sixth time in the past seven sessions as recession concerns sent crude oil tumbling near seven-month lows. Late today, USDA reported July soybean crushing at 181.34 million bu., up 7.26 million bushels from June and up 14.97 million bu., or 9%, from 166.37 million in July 2021. USDA’s figure was about 535,000 bu. above expectations.

Wheat: December SRW wheat fell 37 1/4 cents to $7.94 1/4, the contract’s lowest close since Aug. 25. December HRW wheat fell 44 1/2 cents to $8.68. December spring wheat fell 43 cents to $8.86 1/2. Wheat futures dropped sharply in sympathy with declines in corn, soybeans and crude oil, with the U.S. dollar’s surge to a fresh 20-year high further pressuring grain markets.

Cotton: December cotton fell the daily 500-point trading limit to 108.21 cents, the lowest closing price since Aug. 11. Cotton fell sharply on global recession fears and a sharp gain in the U.S. dollar.

Cattle: October live cattle rose 22.5 cents to $142.80, while October feeder cattle rose 87.5 cents to $184.35. Live cattle rose in a corrective bounce from four-week lows, while feeder cattle found support from weakness in corn. Cash cattle appear heading toward a second straight weekly decline, as USDA-reported live steers averaged $142.78 through this morning, down $2.01 from last week’s average.

Hogs: October lean hogs rose 42.5 cents to $91.95. Hogs posted a corrective bounce but buying interest was limited by ongoing cash weakness. The CME lean hog index fell $1.74 (as of Aug. 30) to $107.62, the lowest since early June, and is expected to drop another $1.36 tomorrow. Pork cutout values dropped $1.33 to $101.86, the lowest daily average since May 16, but movement was stronger at 328 loads.