Wheat falls at market close | Monday 11 July 2022
Blooms wheat in the market closes: 3:30 pm
Corn and soybean markets closed higher for the day, but far from early rallies, while wheat prices were hit hard at the close. The CME Wheat trading range for September was 86 cents and closed down 35 cents.
Corn for the month of September closed 3 cents higher today at $6.37. Corn for the month of December closed 5 cents higher at $6.29. August soybean futures closed 8 cents higher at $15.22, while the November contract closed 8 cents higher. Wheat futures closed down 28-36 cents.
I was surprised by the disappointing closure of the grain markets with hot weather forecast for the next 2-3 weeks. We’ll see what the USDA indicates tomorrow.
Tomorrow is the USDA global and US supply big report for July which includes updated production estimates from South America and updated US supply/demand forecasts for global end stocks and US final stocks. It must be another volatile day.
Today’s USDA Crop Progress Report showed corn conditions remained unchanged at 64% good to excellent, soybean ratings fell 1% to 63% from good to excellent, and spring wheat conditions fell 70% good to excellent 4%. Winter wheat harvest is up 9% to 63% harvested nationwide.
The numbers should be supportive for corn and soybeans but slightly negative for wheat prices tomorrow.
The US dollar continues to rise and is trading at the highest price since 2002. Crude oil is down $1.30 a barrel and the stock market has rebounded off its lows earlier in the day. The Dow Jones fell only 136 points.
In the cattle markets on Monday, August Hogs closed 80 cents lower at $108.37, August Cattle closed $2.20 higher at $136.15, and August Feeders closed $3.15 higher at $174.87.
Wheat markets drop at midday: 10:30 a.m.
Corn and soybean markets are higher but far from the highs recorded earlier in the day. Wheat and crude oil futures turned lower, pulling corn and soybeans from early gains. The US dollar is very strong today and is now trading over 108 at the highest price in more than 20 years.
It was a volatile day with the September corn trading range at 27 cents. August soybeans had a trading range of 34 cents, and wheat for September on the CME was 75 cents.
At this hour, September corn prices are up 10 cents and December corn prices are up 12 cents.
August soybean futures are up 18 cents, and November soybean prices are up 21 cents.
Wheat futures were lower, with wheat prices on the Chicago Stock Exchange down 17 cents. The price of KC wheat fell 12 cents, and Minneapolis wheat fell 11 cents.
Weather continues to be the driving factor with hotter temperatures and limited rainfall forecasts for the next week across most of the corn belt. This weather will hit exactly when the corn goes into the pollination process.
With corn acreage at a four-year low, any yield less than 175 bushels per acre becomes narrow.
In the livestock market today, August Hogs is down $1.00 at $108.12. August Feeders stock is up 57 cents at $134.50, and August Feeders stock is up 20 cents at $171.90.
In overseas markets, crude oil is now down $2.40 a barrel. The US stock market is under pressure again with the S&P 500 down 36 points and the Dow down 102 points.
Grain markets open high: 9:00 a.m.
Grain markets are mostly higher after opening sharply higher last night. It’s all about the hottest and driest weather and forecasts for the next week and into the end of July.
July corn prices were up 12 cents (22 cents higher) and December corn prices were up 12 cents. August soybeans are trading up 6 cents (30 cents from their high) and November soybeans are up 6 cents. Wheat futures are down 3 to 5 cents.
On China’s Dalian Commodity Exchange, corn and soybean futures rose. On the Mativ Stock Exchange in Europe, wheat futures were up 13 cents a bushel at $11.89.
The USDA Major Supply and Demand Report for July is out tomorrow morning at 11:00 AM
The key to watch in today’s USDA Crop Progress Report will be crop conditions. Looking for corn and soybean ratings to raise 1-2%.
Worldwide in the stock market, China’s stock market fell 1.3%. Japan rose 1.2% and European shares fell 0.5%. In early US trading, the stock market was lower with the Dow Jones down 132 points and the US dollar higher. Crude oil prices are now down over $2 per barrel.
In the early trade in mixed cattle futures with pigs higher, live cattle and lower feed cows.