Grain markets close higher, but well off session highs. Monday, July 18, 2022

The grain markets closed higher today, but well off the session highs. The forecast still looks hot for the rest of the week. Dryness is also a concern now in about 30% of the Corn Belt.

At the close, September corn is closed up 8¢ and December corn closed 7¢ higher. August soybean futures closed up 31¢. November soybeans closed 38¢ higher. Wheat futures closed higher, with CBOT and KC wheat up 36¢, and Minneapolis wheat closed 32¢ higher.

The USDA Crop Progress report today showed corn conditions unchanged at 64% good/excellent. Soybean ratings fell by 1% to 61% good/excellent, and spring wheat conditions were reported at 1% better at 71% good/excellent. Winter wheat harvest hit 70% up 7% last week. Odds are good that if the current weather forecast is correct, ratings will move lower for corn and soybeans next week.

Some of the weather models now show the heat breaking by next Monday along with more rain in the dry areas of the Corn Belt.

In the livestock market, August hogs closed up $2.30 at $112.25. August cattle are down 15¢ at $134.77, and August feeders are down 72¢ at $175.65.

The corn and soybean markets were steady on the open last night, higher at the 8:30 opening, and now prices are moving sharply higher.

The super-hot weather in the western Corn Belt, southern Plains, and Delta is taking a toll on corn yields and is putting pressure on the young soybean plants.

It has been a volatile day with September corn having a 22-¢ trading range. August soybeans have had a 44-¢ trading range, and September CBOT wheat having a 44-¢ trading range.

At this hour, September corn is up 11¢, and December corn is 10¢ higher. August soybean futures are up 40¢. November soybeans are 42¢ higher. Wheat futures are higher, with CBOT wheat up 35¢. KC wheat is up 36¢, and Minneapolis wheat is 30¢ higher.

Weather is positive for prices and the outside market factors are also favorable with the U.S. dollar down 86 points. Crude up over $4.00 per barrel, and the Dow is up 170 points.

In the livestock market today, August hogs are up $2.42 at $112.25 August cattle are down 15¢ at $134.77, and August feeders are down 72¢ at $175.65.

The key will be the weather model updates at noon today and if the heat stays through early next week.

The grain markets are higher today. It’s all about weather, and this week looks hot.

September corn is up 9¢. December corn is up 10¢. August soybeans are trading 31¢ higher, and November soybeans are up 36¢. Wheat futures are 15¢ to 20¢ higher.

On the Dalian Commodity Exchange in China, corn and soybean futures are higher. On the Matif exchange in Europe, wheat futures are 3¢ a bushel higher at $10.74 a bushel.

The key to watch in the USDA Crop Progress report today will be the crop conditions. I look for both corn and soybean ratings to move 1% to 2% lower. If the current forecasts are right, look for conditions to move lower again next week.

The stock market in China is up 1.3%. Japan is up 0.5%. European stocks are up 1.2%. In the U.S., the stock market is higher with the Dow up 350 points, and the U.S. dollar is lower. Crude oil prices are lower now, up over $4 per barrel.

In the early trade in livestock futures, all are higher.

Author: Al Kluis

Tags: corn, grain, weather, животноводство, soybean, hogs, wheat, cattle, futures, markets, feeders