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Grain prices settle mostly lower today | Tuesday, June 14, 2022

Corn futures were quietly lower. It's worth noting that July and December contracts did close very near the 20-day moving average. Soybean futures were down nearly a dime in both the July and November contracts today. Both contracts also closed below the key 20-day moving average. CBOT wheat was down 21 cents. KC was down 19 cents, and spring wheat was down 13 cents.

Livestock futures had a mixed trading day. Feeder cattle ended the day quietly higher. Live cattle futures were up 22 cents to up a $1.00. Lean hog futures ended the day down a nickel to down a $1.00. 

The U.S. dollar index ended the day near the highs. Last trade was near 105.30, up 0.33 on the day. Crude oil futures were unable to hang onto the midsession gains. Late session trading had pushed the July futures down more than $2.50. Will the crude bulls step in and buy this dip? Or will we see a larger sell off develop in the energy market. Natural gas prices traded a very volatile session today. Will this spill over to other energy markets?

MIDDAY COMMENTS: 12:10 P.M.

July corn is down a nickel. December corn is down a penny. July soybeans gave back the early session gains and are now down a nickel. November futures are down 7 cents. CBOT wheat is down 18 cents. KC wheat is down 17 cents. Spring wheat is down 11 cents. 

Livestock futures are mixed. Feeder cattle are $1.15 higher. Live cattle are up 60 cents to $1.30, and lean hogs are up 17 cents to 65 cents.

The U.S. dollar has shot over the 105 mark mid-morning. Last trade is 105.20, up 0.23 on the day, which is a new high for the move. Crude oil futures continue to find strength at midday with futures up $1.34 at $122.27. A close over $122.40 would give the bulls more momentum for a run at higher prices. 

U.S. equities have had a rough past few days of trading. The selloff that started last Thursday has turned into four consecutive days of lower lows and lower highs. The gap lower on Monday gives the bears the upper hand for momentum. 

OPENING COMMENTS: 9:10 A.M.

July corn is down 4 cents and new crop is down 2 cents. July soybeans are the strongest on the board this morning up 14 cents, while November soybeans are up 6 cents. USDA confirmed the sale of 148,000 tons of U.S. corn to Mexico in its daily report.

The Crop Progress report pegged corn condition at 72% good/excellent, down 1 point from last week and soybean condition at 70% good/excellent, which is the first rating of the year.

The July vs. November soybean spread is trading around $1.80 this morning; this spread continues to trade mainly between $1.65 and $1.95 over the last month. 

Wheat futures are lower this morning. CBOT is down 15 cents. KC is down 12 cents, and Minneapolis spring wheat is down 10 cents. The Crop Progress report on Monday afternoon pegged the spring wheat emerged at 72% vs. the five-year average at 93%. The good/excellent rating for spring wheat came in at 54% vs the prior year data at 37%. Traders are cautious about getting too excited about crop ratings with the emergence so far behind normal.

Livestock prices are mixed this morning. Feeder cattle are down 25 cents. Live cattle are up 50 cents, and lean hogs are up 27 cents to $1.15.

Crude oil is up $2.55 this morning at $123.48, which is a higher high than last week. If the bulls can close over this level today, it will likely open the door to the $130 level.

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: 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.

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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