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Soybeans once again hit new contract highs | Thursday, June 9, 2022

The corn and soybean markets continued to rally today with soybean futures rallying to new contract highs. Export sales were viewed as disappointing for corn, but good for soybeans.

In the global markets, palm futures were sharply lower, soybean prices were higher on the Dalian exchange in China with wheat futures down 15 cents per bushel in Europe. It is worth noting that the bull spreads really worked again today in the corn and soybean markets.

July corn had a 24 cent trading range and closed 8 cents higher today at $7.73. December corn closed down 1 cent at $7.16 3/4. July soybean futures closed up 29 cents at $17.69, while the November contract closed 14 cents higher at $15.82. Wheat futures closed lower with CBOT wheat closing down 3 cents. KC wheat closed down 1 cent, and Minneapolis wheat was down 10 cents.

On my long-term chart, it is worth noting that if July soybeans can hold onto these gains into the close on Friday, it will be the highest weekly close in soybeans since August of 2012.

In outside markets, the U.S. dollar is trading 59 ticks higher. Crude oil is down 77 cents per barrel day. The stock market continues lower with the Dow down 199 points at this hour.    

The livestock markets closed mixed on Thursday. June hogs closed down 87 cents at $106.97. June cattle closed up 22 cents at $137.05, and August feeders closed up 37 cents at $176.02.

What to watch for in the Upcoming USDA Supply/Demand Reports

Here are five key things to watch when the USDA Supply/Demand Reports are released tomorrow morning.

  1. Will the USDA increase corn and soybean exports and lower ending stocks?
  2. What kind of crop projections will the USDA use for Ukraine?
  3. How will changes in the Ukraine crop impact global ending stocks?
  4. Will the USDA lower India’s wheat crop and projected exports?
  5. Most important, will the market be able to trade and close higher after what should be a bullish report?

MIDDAY COMMENTS: 10:40 A.M.

Corn and soybeans shrug off early weakness and are now trading higher!

At midday we have July corn futures up 17-18 cents with December corn futures up 6-7 cents. July soybean futures are 38-39 cents higher with November futures up 13-14 cents. July Chicago wheat is 10 cents lower, July Kansas City wheat is 8 cents lower and July Minneapolis is 9 cents lower.

Livestock prices are mixed with live cattle up 42 cents, feeder cattle are 35 cents higher and lean hogs down $1.52 per hundred. 

Crude oil is down 26 cents this morning and the Dow futures are 166 points lower.  

A new round of money seems to be chasing the corn and soybean markets here at midday. Soybeans had a good week of weekly export sales and a new announcement of some more sales were also announced so that is helping support the beans market but corn exports were very disappointing.

Lean hogs are under pressure as the export sales were not good this morning. Carcass values also continue to drop and we are seeing money flow out of the lean hog market, adding even more pressure.

Live cattle have been mixed on the day. Higher cash trade earlier this week and lower numbers seem to be supporting the beef complex this Thursday morning.

As we head into the second half of trade today keep an eye on where we close for corn and soybeans.

November soybeans scored a new contract high this morning up at $15.84 ¾. A close above $15.73 would be very beneficial for the bulls in the market. December corn futures hit resistance again at $7.24 and we have a double top there now. A close above $7.24 on December corn could push futures up to the next resistance at $7.33.

OPENING COMMENTS: 9 A.M.

U.S. grain prices are mixed this morning. July corn futures are 2 cents higher. July soybean futures are 3 cents higher. July Chicago wheat is 24 cents lower. July Kansas City wheat futures are 19 cents lower, and July Minneapolis wheat futures are 12 cents lower.

Livestock prices are mixed this morning. Live cattle are 7 cents lower. Feeder cattle are 42 cents higher, and lean hog futures are $1.02 lower.

Crude oil is down $1.05 this morning. The stock market is down 142 points to start off today's trade.

After a strong start to the week of trading, we are seeing grain prices pulling back this morning. Some of the pullback is in regards to traders positioning themselves ahead of the USDA Crop Production report, which will be released at 11:00 am CT tomorrow June 10, 2022.

Weekly export sales were released this morning and were a bit sluggish for corn, solid for soybeans, and decent for wheat. For the week, we had export sales of 354,000 metric tons of corn (current and new marketing year), 1,025,200 metric tons of soybeans (current and new marketing year), and 451,000 metric tons of wheat (current and new marketing year). Private exporters reported sales of 143,000 metric tons of soybeans to unknown destinations this morning. All but 500 metric tons of these sales were for the new marketing year.

Weekly export sales for lean hogs were disappointing, and the beef sales were average. Beef prices keep pushing higher, and the pork complex seems to be finding all kinds of pressure lately. 

Keep an eye on where we close today. Yes, the prices are mixed this morning but the bull spreads are working. Resistance is at $7.69 ½ on July corn, which is the 20 day moving average. For soybeans, resistance is yesterday’s high and contract high at $17.58.   

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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