Soybeans reach new highs for the week | Thursday July 28, 2022

August soybeans, and soybean oil futures were sharply higher today. The next resistance on the August soybean chart is at $16.50 and for November soybeans it is at $14.80. 

The weather models continue to stay very hot. The risk is the forecast can change over a weekend.

At the close, September corn is up 15¢ and December corn is 16¢ higher. August soybean futures closed up 30¢. November soybeans closed 30¢ higher. Wheat futures closed higher, with CBOT wheat up 26¢, KC wheat up 28¢ and Minneapolis wheat 18¢ higher.

Soybean market continues higher

August futures are now up $1.94 from the low last Friday. November soybeans are up $1.50 per bushel. Corn and wheat are also sharply higher. The hot weather forecast is the driving factor for prices. I just want to give a warning that it's dangerous to get bulllish on any weather scare in July, especially when soybean prices have rallied by over $2.00 per bushel.

I would view today’s USDA Export Sales report as disappointing for corn and wheat and good for new crop soybeans. On my charts August soybeans rallied up to test resistance at $16.00 and November soybeans hit resistance at $14.20. Watch to see if futures can rally up and close above those key price levels at the close today. 

At this hour, September corn is up 11¢, and December corn is 12¢ higher. August soybean futures are up 22¢. November soybeans are 27¢ higher. Wheat futures are higher, with CBOT wheat up 15¢. KC wheat is up 14¢, and Minneapolis wheat 8¢ higher.  

In the livestock market, August hogs are 90¢ higher at $119.52. August cattle are down 32¢ at $136.30, and August feeders are down $1.50 at $177.55.

The U.S. stock market is higher with the Dow up 216. Crude oil prices are up 13¢ per barrel.  

U.S. grain prices higher this morning: 8:40 a.m.

September corn futures are 14¢ to 15¢ higher, August soybean futures are 11¢-12¢ higher, September Chicago wheat is 18¢-19¢ higher September Kansas City wheat futures are 17¢-18¢ higher and September Minneapolis wheat futures are 16¢ higher.

Livestock prices are mixed this morning. Live cattle are 17¢ higher, feeder cattle are $1.10 lower, and lean hog futures are $1.20 higher.

Crude oil is up $1.32 this morning and the stock market is up 84 points to start off today's trade.

It is still all about the weather. Forecasts for the first part of August look hot and dry for a good portion of the U.S. and that has traders putting some more risk premium back into the corn and soybean markets. As the weather forecast change so will our grain prices.

The Federal Reserve increased interest rates by 75 basis points yesterday as expected. The stock market took that news in stride and closed very strong. The Federal Reserve's comment that we are not in a recession seems to also be adding strength to commodities this morning too. Commodities typically do well during inflation.

Weekly export sales were out this morning. We saw a net cancelation of old crop soybean of 58,600 metric tons. However new crop soybean sales were good coming in at 748,800 metric tons. Corn sales were disappointing on both old crop and new crop and combined we only saw net export sales of 344,000 metric tons. Wheat export sales numbers were decent, coming in at 412,000 metric tons. 
Lean hog cash prices this week have been very impressive. However weekly export sales on lean hogs was disappointing this morning. Live cattle on the other end had very strong weekly exports this week.

Keep a close eye on the weather models at noon. 

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: Al Kluis has been a commodity advisor and broker since 1976. Kluis is an introducing broker with Wedbush Futures and writes a column, Your Profit, which appears in every issue of Successful Farming magazine. Kluis has published two books on commodities trading and is commonly quoted in major publications including the Wall Street Journal. He is also a featured speaker at commodity conferences nationwide. Kluis is a frequent market analyst for the Linder Farm Radio News Network. A Minnesota farm boy, Kluis was awarded his degree in ag economics from the University of Minnesota in 1974, after which he was executive director of the Minnesota Soybean Association before entering the markets full-time. His family still farms in southwest Minnesota, and Kluis enjoys helping with fieldwork when the markets allow.

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.