Grain markets remain higher. Tuesday, April 12, 2022

The grain markets moved higher today in orderly trade. Several positive factors were behind the rally again today. One was the Biden administration’s announcement that it wanted to extend the availability of higher biofuel blends of gasoline during the summer to curb soaring fuel costs and to cut reliance on foreign energy sources. Another factor contributing to the rally was the continued wet weather concerns in the U.S. combined with dry weather concerns in Brazil.

Corn failed to close above $7.80 but did manage to post a new high close for this rally. December corn again made new contract highs and posted a new high close again today. May soybeans tested support at $16.80 and closed midrange. For wheat, prices continue to move higher as world demand remains strong.

Today, May corn had a 14¢ trading range closing up 11¾¢. May soybeans had a 25¢ trading range closing up 15¢. Wheat futures closed 10¢ to 23¢ higher.

With just two trading days left for this week, I would like to see May corn close over $7.80 and May soybeans post a close over $16.80 by the close of markets on Thursday.

In outside markets, crude oil is up over $600 per barrel. The U.S. stock market is lower and livestock futures closed higher after trading lower early in the day.

Grain prices continue to march higher with May corn challenging resistance at $7.80, and May soybeans testing $16.80. Wheat futures are 16¢ to 31¢ higher.

Here are some of the key factors impacting the grain markets.

The Wall Street Journal reported that President Biden is expected to announce a policy change that will allow year-round E-15 ethanol sales. This should increase corn grind by at least 50 million bushels and may take gasoline prices down by 10¢ to 20¢ per gallon.

U.S. weather is an increasing concern with cold and wet weather delaying corn planting and dry conditions continuing in the Southern Plains.

It is too early to take projected U.S. corn yields lower, but the current weather pattern is a concern.

At the same time, it’s getting dry in the double-crop area of Brazil.

Then, when you factor in reduced production out of Ukraine, global grain buyers are actively getting product bought – cash and/or futures. A lot of large tenders are showing up for wheat and vegetable oil.

Livestock futures are higher at this hour with June cattle and hog futures higher by $1.50 to $3.90 higher, with May feeder cattle up $1.40.

Following the rally in palm oil and global vegetable oil prices, the grain markets are off to a higher start today. For corn and wheat, the other positive factor was the lower-than-expected crop ratings form the USDA on Monday.

At this hour, July corn is up 14¢, July soybeans are 22¢ higher, and wheat futures are 14¢ to 26¢ higher. These are some of the key chart levels I am watching. Can nearby corn get up and close over $7.80 today or tomorrow? Can May soybeans get up and close over $17.00, and can July CBOT wheat close over $11.50?

In the headline news today, President Biden is expected to announce in Iowa that the government will allow year-round E-15 ethanol sales. This should increase corn grind by at least 50 million bushels and may take gasoline prices down by 10¢ to 20¢ per gallon.

In outside markets, crude oil is up just over $5.00 per barrel. The U.S. stock market is higher, and livestock futures slightly higher, except feeder cattle.

The stock and commodity markets are closed on Friday for Good Friday, so I’ll be watching where prices close on Thursday.

Successful Farming

Tags: животноводство, soybeans, wheat, cattle, futures, feeder cattle, hog, grain markets, corn, prices