Choppy day of trade ends with corn high and wheat low. Wednesday, July 27, 2022

August soybeans, soybean meal, and soybean oil futures were higher again today as we approach the first notice day. It feels like a classic market squeeze with some commercial caught on the wrong side. In a choppy day of trade, corn closed higher while wheat closed lower.

I am watching my nearby soybean chart with resistance in the August contract now at $15.88 and then at $16.00. The extended weather models look really hot from August 2 to August 10. For late-planted corn and the entire soybean crop, that hot weather for that long could take a toll on 2022 yields.

At the close, September corn is closed up 3¢ and December corn closed 2¢ higher. August soybean futures closed up 46¢ and November soybeans closed 26¢ higher. Wheat futures closed lower with CBOT wheat down 13¢. KC wheat closed down 15¢ and Minneapolis wheat closed 18¢ lower.

In the livestock markets on Wednesday, August Hogs closed up $1.62 at $118.60, August Cattle closed down 7¢ at $136.80, and August Feeders closed up $1.67 at $179.10.

As expected, the Fed announced a 0.75% increase in short term rates today. After the release of the report, that U.S. dollar rallied and the last trade shows the U.S. Dollar Index is up 0.11 points at 107.31. Crude oil is up $2.70 per barrel at $97.70. After the rate increase was announced, the stock market went sharply higher, and futures are up 89 points at 4,012. Dow futures are up 397 points at 32,130.

The soybean market continues higher at midday. Corn has traded on both sides and wheat futures are mostly lower.

The volume of trade is down again as traders evaluate how much crop damage is likely to develop based on the current weather forecasts.

Wheat is lower as the spring wheat crop tour is viewing a crop that is even better than expected.

I think the rain events have so far been very disappointing for most of the Corn Belt with many dry areas remaining dry. I now look for crop conditions to move lower next week. This will take the good-excellent crop ratings below the 20-year average and it will be the lowest rated crop in the last five years.

At this hour, September corn is up 4¢ and December corn is 2¢ higher. August soybean futures are up 37¢ and November soybeans are 28¢ higher. Wheat futures are lower with CBOT wheat down 7¢, KC wheat down 9¢, and Minneapolis wheat 15¢ lower.

In the livestock market today, August Hogs are $1.70 higher at $118.67, August Cattle are down 12¢ at $136.75, and August Feeders are up $1.20 at $178.62.

The U.S. stock market is higher with the Dow up 125. Crude oil prices continue higher as the last trade shows crude up $2.30 per barrel.

Soybeans in China rallied 36¢ today. Palm oil futures are sharply higher, and August soybeans are trading 38¢ higher. China is rumored to have bought another three to five vessels of new crop soybeans. The GFS weather model is projecting extreme heat in early August.

September corn is up 2¢. December corn is up 1¢. August soybeans are trading 38¢ higher, and November soybeans are up 22¢. Wheat futures are 4¢ to 13¢ lower.

On the Dalian Commodity Exchange in China , corn is up 22¢, and soybean futures are 36¢ higher. On the Matif exchange in Europe, wheat futures are 7¢ a bushel higher at $11.42.

The next chart objective for December 2022 corn is at $6.20. For November soybeans, my next chart objective is at $14.20.

The stock market in China is down 0.2%. Japan is up 0.2%. European stocks are up 0.6%. In early U.S. trade, the stock market is higher with the Dow up 110 points. Crude oil prices are down 20¢ per barrel.

Livestock futures are all mixed this morning, with hogs higher, live cattle and feeder cattle lower.

Author: Al Kluis

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