Grain prices end the day mixed. Tuesday, April 26, 2022

May corn was 3 cents higher while December ended the day nearly a dime higher. July soybeans settled down 3 cents as November soybeans were nearly 11 cents better on final trade today. Wheat futures did manage to close in the green. CBOT was 21 higher. KC wheat was 12 higher, and spring wheat was nearly a dime stronger.

Outside markets remain volatile. Crude is up over $3 at the same time the US dollar is up 0.58 points at 102.35. The U.S. stock market continues to be under selling pressure. The S&P 500 is down nearly 2.5%. The DOW Jones is down 3.4%.

The Weekly Energy Report will be out tomorrow morning. Gasoline demand and ethanol production will be a few of the data points traders will be watching closely.

Livestock futures ended mixed today. Feeder cattle were down 45 cents to $1.32. Live cattle were up 65 cents on the April contract while the June was up 90 cents. Lean hogs continued to see selling pressure. June slipped to the lowest level since March 7 as prices ended the day down $2.72.

We have seen good export sales announced both Monday and Tuesday this week. Will we see another round of sales announced on Wednesday morning? Will the grain bulls be able to shrug off any weakness in the outside markets?

Export sales this morning totaled 265,000 tons of soybeans. However, the soybean market has not been able to hold the early session gains. May soybeans are still up 6 cents while November is up 10 cents. The cool and wet forecast for the next 10 days has helped push December corn nearly a dime higher on the day. Contract highs from one week ago stand at $7.55 on the December contract.

The Crop Progress report on Monday afternoon should keep the corn bulls in the driver’s seat for the short-term. Planting progress is the slowest since 2013. Although this does seem friendly, we have seen the U.S. farmer plant over 30% of the nation’s crop in one week. Planters will be rolling long hours to catch up once there is a break in the weather.

Wheat prices have bounced around during trading on Tuesday. Currently, CBOT wheat is up 16, KC is up 12 and Spring wheat is up 10. Canadian farmers plan to plant more wheat and less canola than last year. The data suggests 7% more wheat and 7% less canola. Canada was dealt a dry growing season last year that ended in poor production numbers. The world balance sheet needs North America to have a good growing season with high production.

U.S. stock futures are getting hit with selling pressure today. The S&P futures are down 1.7%, and the DOW Jones futures are down 1.5%. Economic data was released today showing that new home sales fell by 8.6% month over month. Analysts were looking for 0.6% decline. All economic reports will be closely watched going forward as many analysts fear we are on the verge of recession setting in for the U.S.

Crude oil has bounced back nicely today as prices are slightly higher than the high from Monday. It is worth noting that the June contract is above the 30-day average. A strong close over this line should help set the stage for the bulls to regain momentum.

Worse-than-expected numbers in the weekly Crop Progress report Monday afternoon helped the bulls ignite a turnaround Tuesday trade.

Corn prices are up 1¢ on old crop and 6¢ on new crop. Soybean prices are recovering some of yesterday’s losses, as old crop is up 10¢ and new crop is up 6¢. The wheat market is the strongest of the grain complex on Tuesday. CBOT wheat is up 25¢. KC wheat is up 22¢, and spring wheat is up 10¢.

Reports from Canada suggest Canadian farmers will plant nearly 600,000 more acres of oats this spring. That news put pressure on the oat market during early trading on Tuesday. July oats are down 20¢.

Livestock prices are quietly mixed this morning after a rough start to the week on Monday. April feeder cattle are down 20¢, while April live cattle are up 40¢. June lean hogs are down 90¢.

Reports from Ukraine suggest further damage to transportation and export infrastructure, which worsens the situation for ability to successfully export any of this year’s crop. Many traders are becoming more and more concerned with the timeline required to repair the damage that has been done. Recall that Ukraine is the world’s fourth largest wheat and corn exporter.

Crude oil is up $1.50. The S&P 500 futures is down over 1.1% as traders evaluate the impact of Chinese lockdowns.

Tags: corn, soybeans, wheat, futures, live cattle, markets, feeder cattle, lean hogs, livestock futures