Corn, soybean markets move lower in a light day of trade. Wednesday, July 20, 2022

Fund selling and spec liquidation dropped futures into the close, while the wheat market ends the day mixed. The nearby corn futures held right at support, while soybeans fell through support late in the day. USDA announced one soybean sale to China early today. I expect to see more tomorrow when the USDA releases its weekly Export Sales report at 7:30 a.m. CT.

Today’s Energy Information Agency (EIA) report was viewed as positive for ethanol and corn prices. Ethanol production increased by 29,000 barrels per day to 1.034 million barrels per day, while ethanol stocks dropped by 53,000 barrels. Gasoline prices have come down, but ethanol prices are competitive, and ethanol processors remain profitable.

September corn closed down 4¢ at $5.92. December corn closed down 5¢ at $5.90. August soybean futures closed down 28¢ at $14.49, while the November contract closed down 26¢. Wheat futures closed 2¢ to 7¢ higher.

The U.S. dollar is down ½%. Crude oil is up $1.60 per barrel. The stock market is sharply higher with the Dow now up 660 points.

In the livestock markets, August hogs closed up $2.05 at $114.87. August cattle closed up 2¢ at $135.75, and August feeders closed down 92¢ at $177.82.

The extended forecasts for later this week are not as hot, and all of the models show cooler temps and more rain into early August. The question we are trying to understand is how much yield has been lost. No doubt some corn yield potential is gone in about 30% of the Corn Belt, but it is too early to hurt the soybean crop.

September corn is down 2¢, and December corn is 4¢ lower. August soybean futures are down 18¢. November soybeans are 15¢ lower. Wheat futures are higher, with CBOT wheat up 10¢. KC wheat up 4¢, and Minneapolis wheat 4¢ higher.

The bears keep pressing lower, but so far, the key support levels in September corn and August soybeans have held.

Some new crop soybean sales to China were announced this morning. I expect to see more soybean sales announced later this week.

In the livestock market today, August hogs are up $1.87 at $114.70. August cattle are up 37¢ at $136.07. August feeders are up 20¢ at $178.95.

In the outside markets, crude oil is now down 80¢ per barrel. The U.S. stock market has turned higher, with the S&P 500 up 29 points, and the Dow up 70 points.

The corn and soybean markets are lower on fund liquidation while the wheat market is higher on strong demand. The forecast models all show the heat breaking next week along with more rain into early August. It is worth noting that corn open interest went higher yesterday with the lower futures market.

September corn is down 3¢. December corn is down 6¢. August soybeans are trading 16¢ lower, and November soybeans are down 15¢. Wheat futures are 7¢ to 9¢ higher.

On the Dalian Commodity Exchange in China, corn and soybean futures are slightly lower. On the Matif exchange in Europe, wheat futures are 16¢ a bushel higher at $11.26.

Key support is at $5.85 for nearby corn, with August soybeans having support at $14.56.

Author: Al Kluis

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