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Grain prices end the day mixed | Monday, June 27, 2022

U.S. grain prices ended the trade on Monday mixed. July corn was down 6 cents with December corn down 21 cents. July soybean futures were 19 ¾ cents higher with November beans up 8 ½ cents. July Chicago wheat closed down 19 ¾ cents, July Kansas City wheat closed down 19 ¾ cents and July Minneapolis wheat closed down 29 ¼ cents.

Livestock prices closed the day mixed. Live cattle futures finished the day up 90 cents on the June contract, August feeder cattle closed up $1.62 and July lean hog futures closed the day 75 cents lower.

Crude oil is up $2.30 and the Dow futures were 100 points lower.  

The weekly Crop Progress report shows corn rated 67% good/excellent, which is down 3% from last week. Soybeans this week were rated 65% good/excellent, which is also down 3% from the previous week. These ratings are a little worse than the market was expecting, so this should give the market a little boost in the overnight trade.  

Weather forecast shows a drier trend but mild temps. This should help for good crop growth and not threatening to the US crop. We will have a long ways to go until we have a crop produced so any sign of warmer temps will sure to cause a rally in the market. Until then, rallies will more than likely be sold.

Soybeans did find some support in today’s trade with higher palm oil prices supported bean oil. Overall demand for soybeans still remains very good and many are expecting tighter stock in the USDA Quarterly Stock report which will be released out Thursday morning. 
In the outside markets we keep hearing a lot of talk about recession. These rumors has the investors on edge and quick to take money out of stocks and commodities 

Grain markets remain mixed at midday: 10:45 a.m.

At midday we have July corn futures are down 7 to 8 cents with December corn futures down 19 to 20 cents. July soybean futures are 16 to 17 cents higher with November futures up 8 to 9 cents. July Chicago wheat is 1 cent lower. July Kansas City wheat is 5 cents lower, and July Minneapolis is 9 cents lower.    

Livestock prices are higher with live cattle up 25 cents. Feeder cattle are $1.65 higher, and lean hogs up 50 cents per hundred. 

Crude oil is up $1.61 this morning, and the Dow futures are 61 points higher.  

Better than expected weekend rains across parts of the U.S. have the corn market under pressure this morning but trading 10+ cents off of their lows. We seem to be finding support for December corn around the $6.50 level.    

Soybeans shrugged off early losses and are now trading higher. Support from soybean oil is pushing the soybean prices higher at midday. 

The Weekly Crop Progress report will be out at 3 p.m. CT today. Crop rating for both corn and soybeans look to decline 1 to 2% in the “Good/Excellent” category. Weather for the next 7 to 10 days looks fairly dry but the extreme heat stays away. If we do see the extreme heat surge back into the Corn Belt, we will likely see corn and soybean prices push higher but for now we are just in a drier with seasonal temps forecast. 

Livestock prices are pushing higher. Last week the cattle on feed report was a bit supportive to live cattle, but recession talk in the U.S. has the live cattle a bit hesitant to push much higher. Feeder cattle are getting support from the hard down in corn prices.

Weekly export inspections were out this morning and pretty good for corn and soybeans. Both were above last week numbers, so overall demand remains strong. 

Grain markets start the day mixed: 8:45 a.m.

Grain markets are off to a mixed start with corn lower, soybean and wheat futures higher. The weekend weather brought more rain and better coverage than expected, putting pressure on the corn market. Soybeans and wheat are higher on end user buying and limited farmer sales. 

July corn is down 7 cents. December corn is down 16 cents. July soybeans are trading 9 cents higher, and November soybeans are up 2 cents. Wheat futures are 1 to 3 cents higher. 

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% to 2% lower and are likely to be lower again next week.

On the Dalian Commodity Exchange in China, corn and soybean futures are lower. On the Matif exchange in Europe, wheat futures are 2 cents a bushel lower at $11.77.

Around the world, the China stock market is up 0.8%. Japan is up 1.3%, European stocks are up 0.7%.  

In the early trade, livestock futures are higher. August hogs are up 72 cents at $107.42. August cattle are up 45 cents at $133.82, and August feeders are up $1.95 at $174.45.

For a free trial of The Kluis Report including three times a day market updates and the Saturday newsletter, visit kluiscommodities.com, call 888-345-2855, or email info@kluiscommodityadvisors.com

About the Author: Al Kluis has been a commodity advisor and broker since 1976. Kluis is an introducing broker with Wedbush Futures and writes a column, Your Profit, which appears in every issue of Successful Farming magazine. Kluis has published two books on commodities trading and is commonly quoted in major publications including the Wall Street Journal. He is also a featured speaker at commodity conferences nationwide. Kluis is a frequent market analyst for the Linder Farm Radio News Network. A Minnesota farm boy, Kluis was awarded his degree in ag economics from the University of Minnesota in 1974, after which he was executive director of the Minnesota Soybean Association before entering the markets full-time. His family still farms in southwest Minnesota, and Kluis enjoys helping with fieldwork when the markets allow.

Editor’s Note: The risk of loss in trading futures and/or options is substantial, and each investor and/or trader must consider whether this is a suitable investment. Past performance – whether actual or indicated by simulated historical tests of strategies – is not indicative of future results. Trading advice reflects good-faith judgment at a specific time and is subject to change without notice. There is no guarantee the advice given will result in profitable trades.

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