Corn futures end day mixed after unusual export announcements. Friday, July 15, 2022

Grain trading ended the day mixed on Friday.  Corn futures were quietly mixed after an unusual day of updates from the USDA regarding daily exports. Initially we saw a sales announcement this morning of 133,000 metric tons sold to China for new crop. Later in the day, the USDA retracted the sales announcement, meaning the sale was “withdrawn based on updated information received from the exporter.” Although this is uncommon, it is not unheard of. The smaller amount is likely the primary reason traders were not too shaken by the story.

August soybeans were down roughly a nickel while November was quietly higher. Soybean oil was considerably higher today, which is worth noting for next week. The high today stopped just shy of the 10-day average, which is significant because the last time prices closed above this line was June 9.

Wheat prices ended the day about a dime off the low, but still down on the day. The chart damage the bears inflicted today was significant. Watch the wheat charts for the first day of higher highs and higher lows with little or no change to news. That would signal a potential change in momentum.

Crude oil prices ended the day over $1.75 higher near the $97.50 mark. The daily chart does look like momentum could be turning in favor of the bulls. U.S. stock futures were over 1.5% higher late in the day on Friday. If the stock market can build bullish momentum in the face of negative news, we could see an impressive rally begin to unfold.

At mid-day, September corn is down 4¢, December corn is down 1¢, August soybeans are down 9¢, and November soybeans are down 4¢. Wheat is likely dragging the grain complex lower as selling pressure picked up since this morning. CBOT wheat is down 19¢, KC is down 16¢, and Minneapolis is down 9¢. Both CBOT and KC wheat contracts have breached the July 6 low which was viewed as major support on the charts.

Cattle futures have drifted lower as the day has gone on. August feeder cattle are down $2.75 while August live cattle are down 65¢. Lean hogs are mixed as July is down a nickel and August is up 45¢. Export sales data this week was in line with expectations, but traders are nervous about the potential impact of global recession.

U.S. stock market futures have been gaining steam since this morning. The S&P futures are up 1.5% while the Dow Jones futures are up 1.7%. If the stock market can close the day in this area, it would be a good sign for the bulls as it would be a convincing close over the 10 and 20-day averages.

Crude oil briefly traded over the $99 mark today, but has since backed off the high. Prices are still up $2.50 on the day, but the weekly chart favors the bears. The bulls need to post a convincing close over the 20-day average (near $104.35 today) before the momentum will turn back in their favor.

Grain prices are mixed this morning as traders await the updates to weather forecasts.

September corn is up 1¢. December corn is up 2¢.

August soybeans are up 1¢, and November soybeans are steady.

Wheat prices are in the red to start the day. CBOT wheat is down 10¢, which puts prices just below the July 6 low and $1.55 off the high from Monday. KC wheat is down 9¢ but is still 7¢ above the July 6 low. Spring wheat is quietly lower by 4¢ this morning.

There was a corn export sale of 133,000 metric tons announced this morning to China. This is likely tied to the story yesterday that China would not be importing Brazilian corn until the 2023 crop year, as quality control measures were not in place for the recent crop year.

Livestock futures are mixed after the opening bell. August feeder cattle are down $1.07 while August live cattle are down 67¢. July hogs are steady while August is up 67¢.

The outside markets are mixed this morning after a volatile week of trade. The U.S. dollar is down 0.12 at 108.28. Crude oil is up $1.12 at $96.90. S&P futures are up 30 points, and the Dow Jones futures are up 320 points.

China reported a worse than expected GDP number overnight, which has sent their stock market down 2.2% today. There were a few U.S. companies that reported strong earnings today. We could be seeing some foreign money flowing into the U.S. stock markets.

Tags: cattle, futures, Market, live cattle, feeder cattle, corn, lean hogs, grain, soybean oil, prices, soybeans, wheat