Grain starts day quietly higher. August 23, 2023

Grain futures are quietly higher this morning after trading mostly lower overnight. December corn futures are up 4¢, November soybean futures are up 1¢. CBOT wheat is up 2¢, KC wheat is up 3¢ and spring wheat is up 1¢.

Traders are gearing up for reports from crop tours taking place. Although the comparisons made from year to year are important, the variability across the Midwest this year appears to be higher than normal. One of the big reasons for that variability is the hot, dry conditions experienced in June. Agronomists have voiced concerns about how the June weather impacted corn more than soybeans.

Livestock futures are mixed this morning. Feeder cattle are up 35¢ while live cattle are up 25¢. Lean hog futures are down 60¢. Traders are growing more concerned about the outlook in China and possible slowdown in exports if economic conditions deteriorate further.

The U.S. dollar index pushed to the highest level since June 6 this morning. The dollar index has rallied nearly 5% in the last month. If this trend continues, it will likely weigh on U.S. exports. Crude oil is trading lower this morning. The bears picked up momentum after breaking below the prior three-week low early today. The next major level of support is down another $2 from current prices.

Tags: futures, live cattle, feeder cattle, lean hogs, corn, soybean, wheat