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Risk-off mentality pushes ag commodities lower | Thursday, June 3, 2021

The strength of wheat is helping corn and soybean prices, analyst says.

On Thursday, the CME Group’s farm markets close double-digits lower.

At the close, the July corn futures closed 13¢ lower at $6.62. New-crop September futures ended 11¢ lower at $5.82¼. December corn futures closed 6¼¢ lower at $5.66½. 
 
July soybean futures closed 13¼¢ lower at $15.49¾. August soybean futures ended 12¢ lower at $15.04. New-crop November soybean futures settled 10¼¢ lower at $14.03½.

July wheat futures finished 11¼¢ lower at $6.76. 

July soymeal futures closed $2.40 per short ton lower at $391.60.

July soy oil futures finished 1.53¢ lower at 68.85¢ per pound.

In the outside markets, the NYMEX crude oil market is +0.12 lower (-0.17%) at $68.71. The U.S. dollar is higher, and the Dow Jones Industrials are 9 points lower (-0.03%) at 34,591 points.

Jack Scoville, PRICE Futures Group, says that the market selling off was a bit precarious.

“It’s been a strange day. We were higher on the adverse weather forecasts for the Great Plains, especially north, but then word set in about the Fed getting worried about inflation as reason to sell,” Scoville says.  

Bob Linneman, Kluis Advisors, says that the markets will have to digest intense heat that could impact crops.  

“Grain prices continue to have a volatile week. Spring wheat came within 8¢ of contract highs during trade on Wednesday. Multiple production concerns have given the bulls the fuel needed to rally $1.30 off the lows from last week. The strength in wheat is surely helping the corn and soybean bulls push higher as well. There are some technical resistance targets on the charts that the bulls will need to surpass soon, or the bears may try to build some momentum ahead of the monthly USDA supply and demand report next week,” Linneman stated in a note to customers.  

Linneman added, “Some intense heat is set to impact wide areas of the Midwest over the next few days. Lack of adequate rainfall in some of those areas will put a fair amount of stress on plants. Watch the forecasts for the next chance of rain; it will be badly needed.”

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