Grain prices end the day under pressure | Friday, July 1st, 2022 – Successful farming | Mega Mediakw

US grain prices ended trading lower on Friday. September corn fell 9 cents, December corn fell 12¼ cents. August soybean futures were 50¾ cents lower, November beans 62¾ cents lower. September Chicago wheat closed up 37½ cents. Kansas City wheat in September closed up 37 ¾ cents and Minneapolis wheat in September closed up 42 cents.

Cattle prices ended the day higher. Live cattle futures ended the day up $2.02 versus the August contract. August feeder cattle closed to 90 cents. July lean hog futures closed the day 47 cents higher.

Crude Oil is up $2.44 and Dow futures are up 322 points.

Another tough trading week for US grain prices. Fund selling was the main theme this week and continued throughout the week. A combination of recession talk and month and quarter ends all contributed to the reasons the funds liquidated so many contracts this week.

Weather calls for some rain in Iowa and Illinois over the bank holiday long weekend. If the rain fails to materialize or underperforms, we are likely to see higher trading next Tuesday. The next 10-day weather forecast does not look ominous, but some models are predicting a warmer and drier pattern for July 10-20. We are very interested in a weather market so look for next week’s trading direction based on the latest weather charts.

Livestock markets had a good weekend close with higher cash prices in both live cattle and lean hogs, pushing prices higher at the end of the week. Seasonally we usually see lean hogs sell off for a couple of weeks and live cattle move a little higher. However, the cattle markets of the last two weeks seem to be getting some of their direction from the equity markets.

Grain markets will be closed on Monday due to the 4th of July holiday. Trading will resume Tuesday morning at 8:30am CT. Have a Safe and Happy 4th of July!

More sale at grain markets: 10:45 am

At midday, September corn futures are down 6-7 cents and December corn futures are down 10-11 cents. August soybean futures are 45-46 cents lower, November futures are 57-58 cents lower. Chicago wheat in September is 28 cents lower. September Kansas City wheat is 40 cents lower and September Minneapolis wheat is 39 cents lower.

Livestock prices are higher with livestock up $2.77. Forage cattle are $1.37 higher. Lean hogs are up 87 cents per hundred. Cattle markets catch fire. String Cash Market helps support livestock. Live stock supplies appear to be tightening heading into the autumn period and this should help support prices going forward. Forage cattle get good support from depressed corn market.

Crude Oil is up $2.29 this morning and Dow futures are 103 points lower.

More fund sales is the topic today. After a neutral to friendly harvest report yesterday, the funds found themselves in liquidation mode. Some of the selling is due to the month and quarter ends as the fund closes positions to try to balance things out.

Weather forecasts are calling for rain in the Midwest for the three-day weekend, and that appears to be putting even more pressure on the corn and bean markets. Temperatures still remain very seasonal. Once we get past the July 4th holiday, the market will be paying particular attention to weather charts and temperatures as we see parts of the US head into the crucial pollination season.

Grain prices mostly lower this morning: 8:45 am

September corn futures are 1 to 2 cents lower. August soybean futures are 23-24 cents lower. Chicago wheat in September is 2 cents higher. Kansas City September wheat futures are 3 cents lower and Minneapolis September wheat futures are 5 cents lower.

Cattle prices are higher this morning. Live cattle are $2.57 higher. Feeder cattle are $1.05 higher. Lean Hog ​​futures are 72 cents higher.

Crude Oil is up $2.25 this morning and the stock market is down 63 points at the start of today’s trading.

Fluctuating action in grain markets on Friday after the USDA released its acreage report and quarterly grain inventory report yesterday. Overall, the report was neutral to friendly for soybeans, but traders did not act accordingly. The weather today is not threatening but we need to get some moisture in some areas soon.

Open interest in commodities continues to fall as the investor is content to take the money and walk to the sidelines. It seems it will take a major weather event this summer for the outside money to start flowing back into grain prices. Until then, it seems like rallies are likely to be difficult to sustain.

In livestock markets, livestock continue to struggle between recession fears and benign fundamentals. Cash is moving up, especially up north, but we lack the outside investor to push futures up. Forage cattle are up mainly due to lower corn prices over the past two weeks.

Watch for a choppy trade today as traders take off early ahead of a three day weekend.

For a free trial of The Kluis Report, including three times daily market updates and the Saturday newsletter, visit kluiscommodities.com, call 888-345-2855 or email info@kluiscommodityadvisors.com.

About the author: Cory Bratland is the youngest of five children who grew up on his family’s farm near Willow Lake, South Dakota. Bratland attended Willow Lake High School and graduated from Lake Area Technical Institute in Watertown, South Dakota with an AAS degree in business administration. He began his career as a cash grain marketer and grain trader at Cargill, Inc. While at Cargill, Inc., Bratland held various merchandising jobs in South Dakota and Minnesota. In 2003 he was licensed as a Series 3 and 30 Commodity Broker. In 2008, Bratland left Cargill to become an independent commodity broker and formed Prairie Ag Marketing Services. In 2009 he entered into a partnership with Al Kluis as a partner office. In 2010 he became Chief Grain Strategist at Kluis Commodity Advisors. As well as working with Al on marketing strategies on a daily basis, Bratland also serves private clients through Kluis Publishing and Prairie Ag Marketing. He lives near Willow Lake, South Dakota with his wife Erica and their children Hunter, Elliot and Isabella. He is still actively involved in the family farm growing corn, soybeans and alfalfa and also runs a cow/calf operation.

Editor’s note: The risk of loss when trading futures and/or options is significant and each investor and/or trader must consider whether this is a suitable investment. Past performance, whether actual or indicated by simulated historical testing of strategies, is not indicative of future results. Trading advice reflects good faith judgment at the time and is subject to change without notice. There is no guarantee that the advice given will lead to profitable trades.

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