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Corn, soybeans bounce back nicely, ending the day higher | Tuesday, June 28, 2022

U.S. grain prices ended the trade on Monday higher. July corn was up 15 ¼ cents with December corn up 6 ¼ cents. July soybean futures were 33 ¼ cents higher with November beans up 29 ¾ cents. July Chicago wheat closed up 17 ¼ cents. July Kansas City wheat closed up 11 cents, and July Minneapolis wheat closed down 6 ¾ cents.

Livestock prices closed the day mostly lower. Live cattle futures finished the day up 5 cents on the June contract. August feeder cattle closed down $2.30, and July lean hog futures closed the day 25 cents lower.

Crude oil is up $2.16 and the Dow futures were 490 points lower.

A nice bounce back for corn and soybean prices today. Combination of lower crop rating released yesterday and news of China opening up its economy gave corn and soybeans a much needed boost after the hard down day on Monday.

July corn futures did close above the 20 day moving average however we will need to get a close above $7.63 tomorrow to confirm a near term low is in place. July soybeans closing above $16.56 is friendly. $16.91 resistance is the 20 day moving average and could be tested here yet this week.

Livestock markets did not perform very well here today. Struggling economy and recession talks seem to be taking center stage. With summer approaching the halfway mark many traders are questioning how good will our demand be for US been and pork heading into the last half of summer.

U.S. Stock markets tried to rally today, but we still seem to circle back and talk recession. After trading higher to start the day and closing lower, it will be hard for the bulls in the stock market to gain much traction.  

Grain prices move higher at midday: 10:45 a.m.

At midday, July corn futures are up 15 to 16 cents with December futures up 8 to 9 cents. July soybean futures are 25 cents higher with November futures up 26 to 27 cents. July Chicago wheat is 17 cents higher. July Kansas City wheat is 11 cents higher, and July Minneapolis wheat is 5 cents higher.

Livestock prices are mixed with live cattle up 42 cents, feeder cattle are $1.55 lower and lean hogs are down 17 cents per hundred.

Crude oil is up $1.22 this morning and the Dow futures are 172 points lower.

Grain prices are bouncing back today. Crop ratings dropped a little more than expected in the weekly report and with the drier forecast, many traders are suggesting we could see ratings decline again next week. 

With the upcoming U.S. Planted Acres report and Quarterly Stocks report due to be released on Thursday, we have been seeing open interest in corn and soybeans drop. The main reason for the decline in open interest is the June 30th report has a tendency to have some volatility. With the potential increased volatility, we are seeing some traders elect to go to the sidelines.

Talks of China opening up its economy is having a positive impact on energy prices. This news is also spilling over into the grain prices providing more support, especially as we see the strength in the soybean complex. 

Livestock prices are struggling today. Bullish fundamentals are providing support. However, recession talks and fears have traders reluctant to be big buyers today. 

A close above $7.62 in July corn and a close above $16.55 in July soybeans would be supportive to the grain prices.

Grain prices higher to start the morning trade: 9:01 a.m.

U.S. grain prices are higher this morning. July corn futures are 8 to 10 cents higher. July soybean futures are 16 to 18 cents higher. July Chicago wheat is 21 cents higher. July Kansas City wheat futures are 14 cents higher, and July Minneapolis wheat futures are 5 cents higher.

Livestock prices are mixed this morning. Live cattle are 75 cents lower. Feeder cattle are $1.35 lower, and lean hog futures are 83 cents higher.

Crude oil is up $1.17 this morning, and the stock market is up 150 points to start off today's trade.

The Crop Progress report yesterday showed both corn and soybean ratings dropping 3% out of the good/excellent category. Trade was looking for a 1% to 2% decline in ratings. With the drier forecast, we are seeing grain prices supported this morning. 

Livestock markets are mixed here this morning. Cattle are caught between favorable fundamentals but an investor that is hesitant to buy in with recession talks. Lean high prices exploded higher in China yesterday. As China starts to open back up from COVID shutdowns, the consumer there is busy going out and spending money.    

In the outside markets we are seeing stocks bounce back along with crude oil push higher with news of China opening back up.

Look for a choppy but firm trade today as traders position themselves ahead of the USDA Planted Acres report and Quarterly Stocks Report, which will come out on Thursday at 11 a.m. Central time. 

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: Cory Bratland is the youngest of five children who grew up on his family’s farm near Willow Lake, South Dakota. Bratland attended Willow Lake High School and graduated with an A.A.S. degree in ag business management at Lake Area Technical Institute in Watertown, South Dakota. He began his career as a cash grain marketer and grain trader with Cargill, Inc. While working for Cargill, Inc. Bratland held various merchandising jobs across South Dakota and Minnesota. In 2003, he was licensed as a Series 3 and 30 commodity broker. In 2008, Bratland left Cargill to be an independent commodity broker, starting Prairie Ag Marketing Services. In 2009, he partnered with Al Kluis as an affiliate office. In 2010, he became Kluis Commodity Advisors' Chief Grain Strategist. In addition to working with Al daily on marketing strategies, Bratland also serves private clients through Kluis Publishing and Prairie Ag Marketing. He lives near Willow Lake, South Dakota with his wife Erica and children, Hunter, Elliot and Isabella. He still actively participates in the family farm that raises corn, soybeans, alfalfa, and also runs a cow/calf operation.

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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