August soybeans soar at close. Tuesday, July 26, 2022

August soybeans exploded higher today closing up 59¢ and right at the high of the day. Most of the gains were because the meal market was $25 per ton higher.

Corn and wheat also were higher today. The rally has been very orderly, which indicates its being driven by strong demand.

It is worth noting that cash bids for soybeans are now off of the November contract. The cash soybean basis has dropped by over $1 per bushel at many locations in the last two days. Two weeks ago, I became very nervous about the huge cash inverse and now it has collapsed for soybeans, and I expect the same for corn.

The rain that was expected in many areas of Iowa and Minnesota was a real bust this week, and it looks very hot for next week. I think this could impact crop ratings again in the report next Monday.

At the close, September corn is closed up 17¢ and December corn closed 17¢ higher. August soybean futures closed up 59¢ and November soybeans closed 38¢ higher. Wheat futures closed higher, with CBOT wheat up 33¢, KC wheat up 37¢, and Minneapolis wheat closed 45¢ higher.

In the livestock market today, August hogs closed down 25¢ at $116.97. August cattle closed down 87¢ at $136.87, and August feeders closed down $1.87 at $177.42.

In the outside markets, the U.S. dollar index is up 0.70 points at 107.19. Crude oil is down $1.82 per barrel at $94.90, and futures are down 44 points at 3,920. Dow futures are down 225 points at 31,740.

The grain markets continue higher with corn and soybeans testing key resistance levels on the charts. The grain markets are higher, but well off the highs posted at about 8:40 a.m. today right after the opening of the day trade.

Prominent crop forecaster Michael Cordonnier cut his corn yield projection by 2 bushels per acre down to 175 and dropped his soybean yield projection by 0.5 bushel per acre to 51. He has a negative bias going forward.

The prices remain very volatile. Nearby corn futures dropped 40¢ per bushel last week and in day two of trade this week are up 28¢. Soybean futures dropped 32¢ last week and in two days of trade are up 68¢. Wheat futures were down 17¢ to 36¢ per bushel and so far this week prices are up from 40¢ to 47¢ per bushel.

At this hour, September corn is up 11¢ and December corn is 11¢ higher. August soybean futures are up 30¢ and November soybeans are 17¢ higher.

Wheat futures are higher, with CBOT wheat up 28¢. KC wheat is up 27¢ and Minneapolis wheat is 33¢ higher.

In the livestock market today, August Hogs are down 67¢ at $116.62. August Cattle are down 67¢ at $137.07 and August Feeders are down $1.35 at $189.75.

It will be important to hold the gains in the grain markets into the close of trade.

The grain markets rallied on Monday and are adding to those gains again early today. Palm oil prices are sharply higher and today the rally in soybean oil is taking soybeans higher. The other favorable factor is the drop in the crop ratings for both corn and soybeans that was larger than expected.

September corn is up 16¢ December corn is up 15¢. August soybeans are trading 38¢ higher, and November soybeans are up 25. Wheat futures are 22-30¢ higher.

On the Dalian Commodity Exchange in China, corn and soybean futures are higher. On the Matif exchange in Europe, wheat futures are 40¢ per bushel higher at $11.34.

I am watching two key chart points today. First is if December 2022 corn can close above $6.02 and second, if November soybeans can close above $13.80.

The stock market in China is up 0.8%. Japan is down 0.2% and European stocks are down 0.6%. In the early trade in the U.S., the stock market has turned lower with the Dow down 110 points.

Crude oil prices are up $1.20 per barrel.

In the early trade in livestock futures all are mixed with hogs higher, cattle and feeder cattle lower.

Author: Al Kluis

Tags: Market, feeders, corn, животноводство, soybeans, hogs, wheat, cattle, meal