After the Bell: Sharp Gains to Start the Week
Corn: Corn futures settled with gains of 9 1/2 to 11 1/4 cents through the December contract. That was in the upper end of today's range, but slightly off session highs. Corn futures were boosted by corrective buying today, as traders reacted to heavy rains and flooding across the Corn Belt over the weekend. Some acres will need to be replanted and it will take time for soils to dry out enough for many farmers to get back into fields. Plus, cool, saturated soils will slow emergence on some acres.
Soybeans: Soybean futures gapped higher on the open and enjoyed strong gains throughout the day trading session. Futures ended high-range but off session highs with gains of 10 1/4 to 14 cents, with old-crop leading gains. Heavy rains fell across the Corn Belt this weekend, resulting flooding in southern areas of the Belt as well as in the northern areas of the Delta. While the wet weather could shift more acres to soybeans, traders were more focused on the possibility that some replanting will be required.
Wheat: Winter wheat futures gapped higher on the open and sharply extended gains. The HRW wheat market ended 24 1/2 to 28 1/2 cents higher, while the SRW wheat market posted gains of 21 3/4 to 24 1/4 cents. The HRS wheat market ended 4 1/2 to 9 cents higher. Traders pushed winter wheat futures sharply higher today in response to the weekend winter storm on the Central and Southern Plains. Heavy snow, high winds and cold temps damaged the HRW wheat crop that is more advanced than usual for this time of year. Thirty-two percent of the crop was headed as of April 23, including 25% of Kansas's crop.
Cotton: Cotton futures finished with gains of 8 to 22 points following a light and choppy day of trade. Cotton futures were mildly boosted by concerns with inclement weekend weather across areas of the South, including flooding in some areas. Strong gains in grain futures also provided spillover support.
Cattle: Live cattle futures finished 10 cents higher to 42 1/2 cents lower through the February contract following a two-sided day of trade. Live cattle futures firmed to new contract highs in early trade, but then faced light profit-taking. While June futures took over as the lead contract at a steep discount to last week's cash cattle trade in the Plains, there was limited willingness to actively narrow that spread today, suggesting traders may be willing to let futures pause after the strong runup.
Hogs: Lean hog futures saw two-sided trade today, but the market settled low-range with losses of 15 to 85 cents. Fundamental analysis: Lean hogs were unable to sustain buying above Friday's highs, which led to a round of profit-taking. However, the market's uptrend remains intact. Light pressure also stemmed from light pork movement of just 111.42 loads this morning on a one-cent price gain for the pork cutout value.
