Corn closes the day in positive territory. Monday, April 25, 2022

Corn futures managed to close out the day in positive territory. Old crop corn settled up 6 to 8 cents. New crop was nearly 8 higher at the last trade today. Weather is likely adding or at least supporting current prices as farmers remain behind the eight ball this spring. Granted, we have seen the American farmer move very quickly to get the crop planted once the weather allows.

Soybeans settled the day 13 to 15 lower, but that was cutting the early session losses in half. China is indicating that nearly 25% of their population is in lockdown. Traders will have have a tricky time trying to figure out exactly what that will do to demand of commodities and even what will happen to growth for China.

Wheat prices were mixed at the close. CBOT wheat battled back from double digit losses to end the day down 3 to 5 cents. KC wheat was able to settle quietly higher. Spring wheat traders are worried that the weather in North Dakota is going to create further problems for planting progress. Spring wheat was up nearly 20 cents today.

The Monday afternoon Crop Progress report today showed corn planting progress at 7% which is 3 points higher than last week, but 2 points shy of the analysts estimate and 13 points below the five year average. Soybeans planted came in at 3% which is inline with estimates, but 2 points below the five-year average. Surprisingly, spring wheat planted came in at 13% which is 1 point above estimates yet 7 points below the five-year average. Winter wheat conditions fell in this report when traders were looking for an improvement.

Livestock quickly traded lower at the open today and spent the entire day under selling pressure. The bearish USDA report last Friday is being blamed for the heavy selling. However, analysts are expressing their confusion over the data given all that has happened to impact those of feed numbers.

Outside markets did not like the news that 25% of Chinese population is in lockdown. Stock market futures spent much of the morning under selling pressure before the bulls were able to step in and push prices into the green by the close. The story of China’s widespread lockdowns needs to be watched as it could easily impact demand for many commodities.

Crude oil cut their losses by half before the 1:30 closing bell today. After being down over $6, we are now seeing crude trade near $3.25 lower. The dollar index is up 0.53 points to 101.76, which is a new contract high.

Old-crop contracts are up 6¢ to 7¢ while new crop is up 4¢. Soybean prices are still down on the day but have cut the earlier losses in half. Old crop is down 13¢ to 14¢ while new crop is down 14¢. The pressure from outside markets is likely putting some pressure on the soybean and wheat markets. Spring wheat is holding on to dime gains on the day at this time.

Crude oil is trading $5.50 lower as Chinese news suggests that nearly 25% of China is in lockdown. This is likely the main story pushing outside markets lower in addition to many commodities.

The outside markets are under selling pressure this morning. Crude oil is down $5 per barrel while RBOB gasoline is down 12¢. Natural gas futures did make a lower low than Friday, but prices did bounce off the 20-day average overnight.

June hogs have hit limit down of $4.75 this morning. Feeder cattle are still under selling pressure as April is down $1.35, and August is down $2.50. Live cattle are also experiencing heavy selling as April is down $2.80 while June has touched limit down of $3.00. The selling in livestock is being tied to the bearish cattle on feed report from this past Friday. Although some analysts suggest the data just doesn’t add up, we are left to trade the report information until the next report.

Corn is up 3 to 6¢ while soybeans are down 15¢ to 19¢. Wheat prices are quietly higher, but off the overnight highs. One thing traders are watching closely are the bull spreads in the grains. If the market was truly going to roll over and enter a new trend, the bull spreads would be leading the way. Those spreads have held together with the recent weakness.

The USDA daily export sales report did confirm a total of 534,000 metric ton soybean sales to China. This follows the big corn sales announced on Friday morning. However, the grain bulls have not been able to turn this news into higher highs on the charts.

The outside markets are under selling pressure this morning. Crude oil is down $5 per barrel while RBOB gasoline is down 12¢. Natural gas futures did make a lower low than Friday, but prices did bounce off the 20-day average overnight.

Livestock futures are softer this morning after a perceived bearish Cattle on Feed report from Friday. Feeder cattle are down $1.27 to $1.75. Live cattle are also under selling pressure as futures are down $2.00 to $2.37. Lean hogs are down 45¢ to $1.75 lower.

Tags: spring wheat, feeder cattle, сorn futures, prices, soybeans, hogs, wheat, live cattle, markets