Corn and soybean markets finish out choppy day. Tuesday, July 19, 2022

September corn had a 25¢ trading range today, while August soybeans had a 43¢ trading range. Wheat prices closed mixed. Today’s lows are now key short-term support for September corn that is at $5.85. For August soybeans the low at $14.59 is key short-term support.

The heat breaks by early next week. Some models bring in rain in the middle of next week and more again in the week-two forecast. Funds continue to add to market volatility, buying large volumes on the up days and selling hard on the down days.

The corn and soybean markets were steady higher overnight and then were hit hard right after the 8:30 opening. Prices are still lower, but well off the early lows. Wheat prices have turned higher. The extended forecast shows the heat breaking early next week along with more rain into late July and early August. The big question is how much damage has been done to the corn and soybean crops in the western Corn Belt, southern plains, and Delta.

At this hour, September corn is down 14¢ and December corn is 16¢ lower. August soybean futures are down 18¢ and November soybeans are 21¢ lower. Wheat futures are mixed, with CBOT wheat up 5¢, KC wheat down 2¢ and Minneapolis wheat 5¢ lower.

The trend appears to have turned lower and if today’s lows are taken out, look for another leg down.

In the livestock market today, August hogs are up 42¢ at $102.55, August cattle are up 37¢ at $136.00, and August feeders are up $1.80 at $178.47.

In the outside markets, crude oil is now down 42¢ per barrel. The U.S. stock market has turned higher, with the S&P 500 up 72 points, and the Dow is up 485 points.

The grain markets are lower on improved rain prospects and cooler temps starting next week. Yesterday, grain futures closed higher but well off the early day highs. At this hour, grain futures are giving back all of yesterday’s gains.

September corn is down 21¢. December corn is down 23¢. August soybeans are trading 24¢ lower, and November soybeans are down 27¢. Wheat futures are 13¢ to 17¢ lower.

On the Dalian Commodity Exchange in China, corn and soybean futures are slightly lower. On the Matif exchange in Europe, wheat futures are 13¢ a bushel lower at $10.91.

The USDA Crop Progress Report showed corn ratings at 64% good/excellent, which was unchanged from last week. For soybeans, the report also showed ratings at 61% good/excellent compared to 62% good/excellent last week. In addition, the report noted that winter wheat harvest is reported at 70% complete.

The top has come off this year’s yield potential in the western Corn Belt, but the central and eastern Corn Belt have above normal yield potential. Also the trade is concerned with the global economic slowdown and how that may impact commodity demand.

The stock market in China is down 1.2%. Japan is down 1.7%. European stocks are down 0.7%.

In the early U.S. trade, the stock market is now higher after a lower start.  Crude oil prices are lower now down over $6 per barrel.

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

Author: Al Kluis

Tags: feeders, corn, prices, животноводство, soybeans, hogs, wheat, cattle, markets