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Wheat posted at seasonal low at market close | Thursday, July 7, 2022
WHEAT POSTED AT A SEASONAL LOW: 3:15 P.M.
The grain markets posted strong gains, with July corn and soybeans closing well off the early day highs. It appears that wheat may have posted a seasonal low, which is something I watch for during the week of July 4.
September corn closed up 9 cents higher and December corn closed 11 cents higher.
August soybean futures closed up 38 cents and November soybeans gained 43 cents. Wheat futures closed 32 to 42 higher.
The updated models at noon today show good rain across much of the Corn Belt later this week, but dry conditions in the 6-10 and 11-to-15-day forecasts. The main driver tomorrow will be the export sales report. Watch to see if the rumored soybean sale cancellations from China show up.
Next Tuesday is the July USDA Supply/Demand reports. It will be interesting to see how much the USDA cuts soybean ending stocks when they plug in 2.7 million acres fewer soybeans.
The livestock markets closed mixed on Thursday. August Hogs closed up 30 cents at $109.50, August Cattle closed up 5 cents at $134.55, and August Feeders closed down 82 cents at $172.47.
In the outside markets, crude oil is now up over $5 per barrel.
The U.S. stock market is higher with the Dow up 263 points. The U.S. dollar is down 0.10 points.
SOYBEANS LEAD THE RALLY AT MIDDAY: 11:00 A.M.
The grain markets came roaring back this morning with soybeans now the leader on the rally. Wheat turned higher in Europe, then corn and wheat followed with prices gaining back some of the recent sharp losses.
At this hour, September corn is currently up 12 cents and December corn is up 13 cents.
August soybean futures are currently up 38 cents and November soybeans are 40 cents higher. Wheat futures are 25 to 31 cents higher. For the size of the rally, it has been an orderly day.
The extended forecasts have turned drier in the central US and that could take yield potential down in the areas where corn is entering pollination. No real heat in any of the forecasts. In Europe the heat wave has returned and will begin to take wheat and corn yields lower.
In the livestock market today after a higher start, prices are now lower.
In the outside markets, crude oil is now up over $5 per barrel.
The US stock market is higher with the Dow up 263 points. The US dollar is down 0.10 points.
CORN AND SOYBEAN MARKETS POST IMPRESSIVE GAINS: 9:00 A.M.
The wheat market appears to have posted a seasonal low and with higher wheat prices the corn and soybean markets are also posting impressive gains.
September corn trading range is 17 cents and the last trade is up 17 cents. December corn is up 16 cents. August soybeans have a 42-cent trading range are trading 40 cents higher and November soybeans are up 42 cents. Wheat futures are 24 to 26 cents higher.
On the Dalian Commodity Exchange in China corn and soybean futures are lower. On the Matif exchange in Europe, wheat futures are 28 cents a bushel lower at $11.01.
Stock indexes are higher around the world. The stock market in China is up 0.4%. Japan is up 1.4%, European stocks are up 1.2%. At this hour, the U.S. stock market is higher with the Dow now up 232 points.
In the early trade in livestock futures are higher.
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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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