Grains continue to stay in the green. Friday, June 16, 2023

The grain markets continue to rally sharply higher with new crop corn and soybeans leading the charge higher.

Many traders look for the USDA Crop Progress report on Tuesday to take conditions down by 2-3% and that will also result in private analysts taking the projected corn and soybean yields lower. I have thought from day one that the USDA corn and soybean yield forecasts are unrealistic, says analyst Al Kluis.

On my charts this is a key two-week time period to watch for a possible, high. I am not willing to put on more hedges but will keep buying puts. It is dangerous to get bullish at this time of year, says Kluis.

In the outside markets. The stock market is  higher again today in orderly trade with the Dow up 162 points. The US dollar is up 25 points today. Crude oil is now up 40 ¢ per barrel.

At this time July corn is up 4 ¢, with December up 9 ¢, July soybeans are now 28 ¢ higher with November soybeans up 39 ¢. Wheat futures are 217 to 24 ¢ per bushel higher.

Livestock futures are mixed this morning. August feeder cattle are up $1.37 at $235.50 August live cattle are up 55 ¢ at $171.67. July lean hogs are up $1.02 at $92.95.

The grain markets continue to move higher on dry weather forecasts and anticipation that private yield projections will move lower again next week.

Adding to the buying was the report that an estimated 57% of U.S. corn is in drought as of June 13. This is up 12% from last week and 26% from three weeks ago. The soybean area impacted is estimated at 51% up 12% from last week and compares to 9% last year.

Livestock futures are mixed this morning. July hogs are $1.15 higher, August live cattle are up 35 ¢, and August feeder cattle are 45 ¢ lower.

On the Dalian Commodity Exchange in China corn and soybean futures are higher. The grain futures market in Europe wheat is 15 ¢ per bushel higher at $7.90

At this time in grain markets corn futures are July corn is up 10 ¢ with December up 16 ¢, soybean futures are 25 to 38 ¢ higher and wheat futures are 20 to 26 ¢ higher.

Around the world in the stock markets, the stock market in China is up 0.6% and in Japan the stock market is up 0.7%. European stocks are up 1.3%.

In the outside U.S. markets this morning with the Dow futures now up 258 points. Crude oil is down 10¢ per barrel while RBOB gasoline futures and diesel futures are down 1¢ per gallon.

Tags: corn, soybeans, wheat, futures, live cattle, feeder cattle, live hogs