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Grain markets rally into resistance, selling off into the close | Wednesday, August 10, 2022

Grain markets rally into resistance, selling off into the close: 2:30 p.m.

The grain markets opened higher, rallied into resistance, and sold off into the close. The extended forecasts now look a little wetter, and traders are going to the sidelines ahead of the USDA monthly Crop Production report set to be released on Friday.

September trading range was 9¢. The market closed up 6¢ at $6.21, which was 10¢ off the high.

The trading range for November soybeans was 32¢. The November contract closed down 1¢ at $14.28 and was 27¢ off the high. 

For September CBOT wheat, the trading range was 28¢. The Chicago market closed up 18¢. Minneapolis was up 13¢, and KC closed up 21¢ on the day. 

I mentioned in the noon update that December corn had resistance at $6.24. It traded above that resistance but closed below it by 6¢. For November, soybean resistance was at $14.50, with prices trading 5¢ above that key level but closing 22¢ below it. 

In the U.S., stocks are sharply higher with the Dow up 437 points at this hour. 

In the livestock markets on Wednesday, October hogs closed up $1.25. October cattle closed up $1.30, and November feeder cattle closed $2.50 higher. 

Grain markets add to early gains at midday: 11:45 a.m.

The grain markets opened higher and have added onto the early gains as more fund buying comes in and the dollar moves lower. 

September corn is up 13¢ while December corn is up 9¢. August soybeans are trading 28¢ higher, and November soybeans are up 16¢. Wheat futures are 12¢ to 20¢ higher. 

On the Dalian Commodity Exchange in China, corn and soybean futures are mixed. On the Matif exchange in Europe, wheat futures are 1¢ a bushel higher at $11.21.

On my charts, here are some of the key resistance levels I am watching into the close of trade today – December corn $6.24 and for November soybeans $14.50. Going above those levels into the close today will bring more fund buying. 

Around the world in the stock market, China is down 0.5%. Japan is down 0.6%. European stocks are up 0.2%. In the U.S., stocks are sharply higher with the Dow up 470 points at this hour. 

In the livestock markets on Wednesday. October hogs are up 70¢. October cattle are up $1.20, and November feeder cattle are trading 50¢ higher. 

Weather concerns, inflation data drive market | 8:45 a.m.

The grain markets are higher today on weather concerns and the U.S. CPI data that showed inflation at 8.5% down from 9.1% last month. More important  is that core inflation was at 0.3% vs. 0.7% last month, which has been positive for the grain and stock markets with the U.S. Dollar down by more than 1%.   

September corn is up 10¢ while December corn is up 8¢. August soybeans are trading 28¢ higher, and November soybeans are up 16¢. Wheat futures are 12¢ to 16¢ higher. 

On the Dalian Commodity Exchange in China, corn and soybean futures are mixed. On the Matif exchange in Europe, wheat futures are 1¢ a bushel higher at $11.21.

I am becoming more concerned day-by-day about the crop yield potential in the western Corn Belt and southern Plains. Tomorrow we get the weekly USDA Export sales report, and it has been an active week of China buying soybeans and Europe buying corn. 

In the livestock markets on Wednesday. Futures are higher along with large gains in the stock market with the Dow now up over 500 points  

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.

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