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Grain prices end the day mixed | Friday, March 13, 2022

July corn was down 10 cents while new crop was down 5 cents. July soybeans had the best day in the grain complex closing up 32 cents. November soybeans were 17 cents higher at the close, settling just under the $15 mark. Wheat prices were able to recover from early session losses and settle well off the lows of the day. CBOT was down 2 cents. KC was up 12 cents, and Minneapolis was up 9 cents.

Weather will be a key for traders next week. All eyes will be on the Crop Progress Report released on Monday to see where the U.S. stands at the mid-point of May. The old benchmark used to be 50% by May 15. The progress of the top five producing states will likely hold more weight than the cumulative national number.

Livestock prices were mostly higher on Friday. Feeder cattle held on to the gains reached early in the session and closed out the day up. August feeder cattle were $1.85 higher, June live cattle were 35 cents higher and June lean hogs were $3.05 higher. Many livestock producers are hopeful the charts put in a low this week and we are ready for a change of trend.

The crude oil market ended the week on a high note. June futures were over $4 higher as trading slowed down late in the day on Friday. With prices over the $110 mark, the bulls are set to make a run at overhead resistance early next week.

The U.S. dollar did trade over 105 briefly today before selling pressure developed and sent futures lower. However, the bulls should have the upper hand when trading resumes next week, unless news breaks over the weekend that would derail their train.

Midday Comments: 11:45 a.m.

Soybean bulls took over the driver's seat during midday trade. It looks like someone got caught in the May contract on its final day of trading. There have been 10 contracts traded today, but the last trade was up 63 cents on the day. The July contract is up 31 cents, and November is up 19 cents. 

Corn prices rain into resistance at the 20-day average today (today's high). When futures failed to pierce that line, the bears stepped in and pushed prices lower. The low from Thursday did not hold, thus producing a lower low and lower high on the daily chart of July corn. Last trade on July is down 11 while December is down 6 cents.

Wheat futures are still mixed. CBOT is down 11 cents. KC is down 1 cent, and spring wheat is up 1 cent. Traders have to determine how much risk premium is valid given the weather across the wheat growing area in the U.S.

Livestock futures are holding on to the early session gains. Feeder cattle are up $1.60. Live cattle are up 40 cents, and lean hogs are up $2.40. The charts were deeply oversold across nearly all the livestock futures. Is this the start of a new trend or a one day bounce?

The crude oil market caught a bid today. The June contract is up $4.35 at 110.48. This contract hit a low of $98.20 on Wednesday. The next upside target is the high from last week at $111.37.

The U.S. dollar has turned lower after briefly trading over the 105 mark. 

Opening Comments: 9 a.m.

Grain prices are mixed this morning following the USDA report yesterday.

July corn is down 6¢. December corn is down 2¢. July soybeans are up 15¢ while November soybeans are up 10¢. Wheat is lower this morning following the big rally yesterday. CBOT wheat is down 9¢. KC is down 5¢, and Minneapolis is steady.

Livestock futures are trying to rebound after an ugly day yesterday. Feeder cattle are up 40¢ while live cattle are down 15¢. Lean hog prices are hoping to have found a bottom. June is up 75¢, and August is up $1.60.

The U.S. dollar is trading slightly higher today, just shy of 105. The momentum readings on the dollar are deeply overbought, but it will take more than that to break the trend.

Crude oil is working on a strong close to the week. June crude is up $2.22 at $108.35. June RBOB gasoline shot to a new contract high today. Futures are now trading at $3.89.

The U.S. stock market is working on a higher day after a streak of aggressive selling. Some stability in the stock market would likely help ease fears of money managers.

About the Author: Bob Linneman is a commodities broker with Kluis Commodity Advisors. Linneman grew up on a diverse farm in eastern South Dakota. Between milking cows, managing a beef herd, and farming various crops, he experienced many aspects of agriculture firsthand. After graduating from North Dakota State University with a degree in business, he moved to Hawaii with his wife. There he was an associate portfolio manager for a fixed income firm that managed $2 billion in assets. After nearly two years in Hawaii, he moved back to the Midwest and began his career in commodities. Linneman is licensed as a Series 3 and Series 30 commodity broker.

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