Wheat plummets at market close. Monday, July 11, 2022

The corn and soybean markets closed higher today, but well off the early highs, while wheat prices were hit hard into the close. The September CBOT wheat had an 86-cent trading range and closed down 35 cents.

September corn closed 3 ¾ cents higher today at $6.37. December corn closed up 5 cents at $6.29. August soybean futures closed up 8 ¾ cents at $15.22, while the November contract closed 8 cents higher. Wheat futures closed 28–36 cents lower.

I was surprised at the disappointing close in the grain markets with the hot weather forecasts over the next two to three weeks. We will see what the USDA indicates tomorrow.

Tomorrow is the big July USDA Global and U.S. Supply report that includes updated production estimates from South America and updated U.S. Supply/Demand projections for global ending stocks and U.S. ending stocks. It should be another volatile day.

The USDA Crop Progress report today showed that corn conditions were unchanged at 64% good to excellent, soybean ratings fell by 1% to 63% good to excellent, and spring wheat conditions at 70% good to excellent up 4%. Winter wheat harvested advanced 9% to 63% harvested nationwide.

The numbers should be supportive for corn and soybeans but a little negative for wheat prices tomorrow.

The U.S. dollar continues to move higher and is trading at the highest price since 2002. Crude oil is down $1.30 per barrel and the stock market has rallied well off of its early day lows. The Dow is down just 136 points.

In the livestock markets on Monday, August Hogs closed down 80 cents at $108.37, August Cattle closed up $2.20 at $136.15, and August Feeders closed up $3.15 at $174.87.

The corn and soybean markets are higher but well off of the highs posted early in the day. Wheat futures and the crude oil market turned lower, pulling corn and soybeans off of the early highs. The U.S. dollar is very strong today and is now trading over 108 at the highest price in 20+ years.

It has been a volatile day with September corn having a 27-cent trading range. August soybeans have had a 34-cent trading range and September CBOT wheat has had a 75-cent trading range.

At this hour, September corn is up 10 cents and December corn is 12 cents higher.

August soybean futures are up 18 cents and November soybeans are 21 cents higher.

Wheat futures are lower, with CBOT wheat down 17 cents. KC wheat is down 12 cents and Minneapolis wheat is 11 cents lower.

Weather remains the driving factor with hotter temps and limited rain forecast for next week across most of the Corn Belt. This weather will hit right as corn enters pollination.

With corn acreage at a four-year low, any yield below 175 bushels per acre gets tight.

In the livestock market today, August Hogs are down $1.00 at $108.12. August Cattle are up 57 cents at $134.50 and August Feeders are up 20 cents at $171.90.

In the outside markets, crude oil is now down $2.40 per barrel. The U.S. stock market is under pressure again with the S&P 500 down 36 points and the Dow down 102 points.

The grain markets are mostly higher after opening sharply higher last night. It’s all about weather and the hotter and drier forecasts for next week and out into the end of July.

July corn is up 12 cents (22 cents off its high) and December corn is up 12 cents. August soybeans are trading 6 cents higher (30 cents off its high) and November soybeans are up 6 cents. Wheat futures are 3 to 5 cents lower.

On the Dalian Commodity Exchange in China, corn and soybean futures are higher. On the Matif Exchange in Europe, wheat futures are 13 cents a bushel higher at $11.89.

The major USDA July Supply/Demand report is tomorrow morning at 11:00 A.M.

The key to watch in the USDA Crop Progress report today will be the crop conditions. I look for both corn and soybean ratings to move 1 – 2% higher.

Around the world in the stock market, the stock market in China is down 1.3%. Japan is up 1.2% and European stocks are down 0.5%. In the early trade in the U.S., the stock market is lower with the Dow down 132 points and the U.S. dollar is higher. Crude oil prices are lower now down over $2 per barrel.

In the early trade in livestock futures are mixed with hogs higher, live cattle and feeder cattle are lower.

Author: Al Kluis

Tags: hogs, wheat, cattle, futures, markets, feeders, corn, животноводство, soybean