Grain prices lower across the board at midday | Tuesday, May 24, 2022
The wheat market traded higher overnight and turned lower this morning, taking corn and then soybeans lower as well. The weather outlook overall is favorable in the U.S., which is one of the factors today. The U.S. stock market has turned sharply lower with the Dow trading as much as 450 points lower. It is now a “risk off day” in the commodity markets.
At midday, July corn is down 15 cents with December down 17 cents. July soybeans are down 8 cents with November soybeans down 10 cents. July CBOT wheat is 23 cents lower. KC wheat is down 31 cents, and Minneapolis wheat is now down 17 cents.
For the week corn is down 8 cents. Soybean futures are 24 cents lower, and wheat futures are 2 to 5 cents higher than last Friday.
On my charts, nearby corn fell below support at $7.80 last week, below last Thursdays at $7.73 today. July corn now has support at $7.62 with nearby corn at the lowest price since April 13. July soybeans have support on the nearby chart at $16.61.
In outside markets, crude oil has given up the early gains and is now down 71 cents per barrel. The stock market was higher in the overnight trade and has now turned lower. If the stock indexes drop below last week’s low, look for additional selling across the board.
OPENING COMMENTS: 9:15 A.M.
After a higher start, wheat turned lower pulling corn lower, while soybeans are mixed with old crop higher, and new crop slightly lower.
In the early grain trade after starting out lower, July corn is now down 8 cents, with December down 9 cents. July soybeans are trading 2 cents higher, and November soybeans are down 1. Wheat futures were higher overnight but have now turned 8 to 12 cents lower. So far July corn and soybean contracts have held key support.
The USDA Crop Progress report yesterday showed the U.S. corn crop is 72% planted, slightly ahead of expectations. The problem area is in North Dakota and Minnesota. North Dakota is only 20% planted. This key Corn Belt state still has 2 million corn acres, 8 million soy acres, and 2.7 million spring wheat acres left to plant. The Prevent Plant insurance date starts tomorrow for most of North Dakota. If you take the corn remaining to be planted in North Dakota and Minnesota, its over 8 million acres. I am estimating that between spring wheat and corn in those two states, we will have over 2 million acres of Prevent Plant.
For soybeans, the report showed soybean planting 50% complete vs 49% and last week 73% last year, 55% average.
Winter wheat conditions 28% good/excellent vs 28% expected 27% last week, 47% last year. Spring wheat planting is 49% complete vs. 56 % last week, 93% last year, and the five-year average of 83% planted.
In the outside markets crude oil is up 60 cents per barrel, the US stock market has turned lower with the Dow down 224 points, Livestock futures are mixed.
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.
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