Corn, Soybean Futures hit Three-Month High
Corn: December corn rose 11 cents to $6.96, the contract’s highest close since June 21. Corn rallied near a three-month closing high after USDA lowered its estimate for the U.S. corn crop more than expected, further illustrating the impact of drought in parts of the Midwest this summer. USDA, in its monthly Crop Production Report today, reduced the estimated crop by 415 million bu. to 13.944 million bu., down 1.171 billion bu., or 7.7%, from last year’s crop and the smallest since 2019.
Soybeans: November soybeans soared 76 cents to $14.88 1/4, the contract’s highest closing price since $15.10 1/2 on June 10. October soymeal surged $25 to $439.80, a lifetime-high close for the contract. October soyoil rose 166 points to 68.34 cents. November soybeans rallied to a three-month closing high after USDA made a larger than expected cut to its crop production estimate. USDA estimated the U.S. soybean crop at 4.378 billion bushels, with an average yield of 50.5 bu. per acre. Analysts expected production of about 4.496 billion bu. and an average yield of 51.5 bushels per acre.
Wheat: December SRW wheat fell 10 3/4 cents at $8.58 3/4. December HRW wheat dropped 2 1/4 cents at $9.27. December spring wheat futures fell 1 cent to $9.26 1/2. USDA, in its monthly Supply and Demand Report, raised estimated ending global wheat stocks for 2022-23 more than expected, to 268.57 MMT, up 1.23 MMT from an August estimate.
Cattle: October live cattle rose 7.5 cents to $145.75, the contract’s highest closing price since Aug. 17. October feeder cattle fell $2.45 to $183.125. Live cattle futures ended mixed, with nearby October higher amid ideas the cash market is near a short-term bottom and may climb as supplies of market-ready animals tighten this fall.
Hogs: October lean hogs fell $1.30 to $91.875. Eroding cash hog market fundamentals continued to pressure hog futures. The CME lean hog index fell 69 cents to $99.57, a four-month low, and Tuesday’s expected quote (for Sept. 9) is down another $1.28 to $98.29.