After the Bell | September 21, 2023

After the Bell | September 21, 2023 Commodities faced risk-off selling amid U.S. dollar strength from a more hawkish tone following this week’s FOMC meeting.

After the Bell
After the Bell
(Pro Farmer)

Corn: December corn futures fell 7 cents, before settling at $4.75 1/4, nearer the session low. Corn futures faced selling pressure after the past two days of corrective gains, sending futures back to technical support.

Soybeans: November soybeans fell 25 1/2 cents to $12.93 3/4, ending near the session low and below the 100-day moving average for the first time since June 29. December meal futures fell $7.00 to $388.10. December soyoil fell 89 points to 58.40 cents, the lowest close since July 7. Soybean futures spent the overnight sliding lower, with increased selling transpiring amid USDA’s weekly export sales data that showed persisting lackluster demand.

Wheat: December SRW wheat fell 13 cents to $5.75 3/4 and near the session low. Prices closed at a contract low close. December HRW wheat dropped 18 1/2 cents to $7.10 1/2. Prices closed near the session low and closed at a two-year low close. December spring wheat fell 16 cents to $7.67 1/2. An FOMC statement and Fed Chair Powell press conference Wednesday afternoon that were even more hawkish on U.S. monetary policy than expected prompted a broad sell off in the raw commodity futures sector today, including wheat.

Cotton: December cotton fell 39 points to 86.47 cents, closing in the upper trading range after marking the lowest intraday level since Sept. 8. Cotton futures extended to a near two-week low as the U.S. dollar pushed to a six-month high following an increasingly hawkish tone from the Fed.

Cattle: October live cattle fell $1.80 to $184.975 and nearer the session low. October feeder cattle lost $2.80 at $257.775, nearer the session low and hit a two-week low. The cattle futures markets today fell victim to a broad raw commodity futures sell off following yesterday afternoon’s FOMC statement and press conference from Fed Chairman Powell that leaned even more hawkish than the marketplace expected.

Hogs: Hog futures seemed to catch the brunt of Thursday’s big commodity sector sell-off, with nearby October diving $2.825 to $82.95. The commodity suffered a broad sell-off Thursday, possibly in response to Fed Chairman Powell’s post-meeting statements concerning the economy, inflation and future interest rate increases.