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Grain prices end the day mixed | Thursday, May 19, 2022

July corn was up 1 ¾  cents with December corn down 4 ¼ cents. July soybean futures were 27 ¾ cents higher with November beans up 15 cents. July Chicago wheat closed down 30 ¼ cents, July Kansas City wheat closed down 29 ¼ cents and July Minneapolis wheat closed down 22 ¼ cents.

Livestock prices closed the day mixed. Live cattle futures finished the day up 32 cents on the August contract. August feeder cattle closed down 60 cents, and June lean hog futures closed the day 80 cents lower.

Crude oil is up $2.03, and the Dow futures were 233 points lower.

Soybeans led the day higher on Thursday. Strong exports helped the July futures gain 27 cents on the day. With the strong trade today and the bull spreads working very well, I wouldn’t be surprised if we would get some more export sale announcements tomorrow or early next week.

Corn futures were caught between the strength of soybeans and the negativity of wheat. The wheat tour is taking place and, so far, the assessments are the crop is bad but maybe not quite as bad as traders initially thought. Plus, we are getting added pressure in the wheat market as the UN works out a strategy to get wheat out of Ukraine.

The U.S. Stock market seems to be stabilizing a bit today after the big selloff on Wednesday. For the past few weeks we get days like we saw on Wednesday where traders are just taking risk out of the markets and going into some safe havens. 

Very little rain across much of the U.S. the past 24 hours is allowing farmers to ramp up spring planting. Many places are wrapping up with many noting very good conditions for the seeds to get a good, fast start.  

Midday Comments: 11:45 a.m.

At midday, July corn futures are up 4¢ to 5¢ with December corn futures down 1¢ to 2¢. July soybean futures are 27¢ to 28¢ higher with November futures up 13¢ to 14¢. July Chicago wheat is 22¢ lower. July Kansas City wheat is 21¢ to 22¢ lower, and July Minneapolis is 13¢ to 14¢ lower.

Livestock prices are mixed with live cattle up 20¢, feeder cattle are $1.42 lower, and lean hogs up 2¢ per hundred. 

Crude oil is up 37¢ this morning and the Dow futures are 340 points lower.  

Solid export sales on corn and soybean helped them shrug off the overnight weakness. The bull spreads have been working the past few days as funds stand in and defend their long positions. Wheat futures are lower but seem to be stabilizing today.                 

Meat prices seem to be stabilizing as well. Lean hog futures continue to shrug off weakness and working on posting a higher close today. Cash prices have firmed earlier this week. 

In the outside markets this morning crude oil shrugged off a $3+ lower trade to now trade higher on the day. Energy demand still seems to be robust across the world. The stock market is lower but seems to be stabilizing in the 300 to 350 points lower. The U.S. dollar is much lower today, helping add support to all commodities including crude oil. 

Opening Comments: 8:45 a.m.

July corn futures are 3¢ to 4¢ lower. July soybean futures are 16¢ to 17¢ higher. July Chicago wheat is 22¢ lower. July Kansas City wheat futures are 29¢ lower, and July Minneapolis wheat futures are 18¢ lower.

Livestock prices are mixed this morning. Live cattle are 45¢ higher. Feeder cattle are 85¢ lower, and lean hog futures are 35¢ lower.

Crude oil is down $1.70 this morning and the stock market is down 278 points to start off todays’ trade.

The big story this morning is the selloff in the stock market. After selling off 1,100 points yesterday, many traders are taking their money and going to the sidelines or treasuries.

Selling continues in the wheat complex and that, in turn, is spilling over into the corn complex. The United Nations is working diligently to find a solution in getting the corn and wheat out of Ukraine and into the hands of countries that rely on that supply. Russia has a good crop of wheat currently growing, and they will supply countries other than the western nations that all have sanctions against Russia. 

READ MORE: Ukrainian farmer attacked by Russian pilot while cultivating

Weekly export sales this morning were decent for corn, good for soybeans, and poor for wheat. We continue to sell a fair amount of old-crop soybeans from the U.S. Also, we are building a nice new crop book of business already for both corn and soybeans.

In the meat complex, beef prices are coming under pressure as recession fears take center stage. Packers are lowering their cash bids and is causing the futures to drop back. Pork prices shrugged off weakness early yesterday and posted higher gains. The feeling in the pork complex is we are starting to see a lower number of hogs come to market, and the packers are scrambling a bit.

Keep a close eye on the stock market today. If the stock market can rally back, look for commodities to follow suit.

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 school at 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.

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

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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