Technical selling and rain pull corn, soybean futures lower | 2021-08-02

Recap for July 30

  • Week- and month-end technical selling, along with additional pressure from forecasts calling for beneficial rains in portions of the Midwest, sent corn and soybean futures lower Friday. Spillover weakness and a firmer dollar pressured front three winter wheat contracts and front five spring wheat contracts. Still, (nearby Minneapolis) September spring wheat advanced 55¢, or 6.5%, in July, building on a 16% climb in June. September corn fell 11¢ to close at $5.47 a bu. Chicago September wheat eased 1½¢ to close at $7.03¾ a bu, though July 2022 and beyond were higher. Kansas City September wheat dipped 1¼¢, closing at $6.73¼ a bu; July 2022 and beyond were narrowly higher. Minneapolis September wheat fell 13¾¢ to close at $9.04¾ a bu with furthest two deferred contracts higher. August soybeans dropped 19½¢ to close at $14.14¾ a bu. August soybean meal dropped $3.90 to close at $352.60 a ton. August soybean oil declined 1.11¢ to settle at 65.82¢ a lb.
  • US equity markets turned lower to close the week, but major indexes recorded gains for July. Pressure on the market came from continued concerns about China’s clampdown on its internet and technology business, and disappointing earnings reports from the likes of Amazon. The Dow Jones Industrial Average fell 149.06 points, or 0.42%, closing at 34,935.47 but posted a 1.3% gain for July. The Standard & Poor’s 500 Index fell 23.89 points, or 0.54%, to close at 4,395.26, but rose 2.3% in July, its sixth consecutive month of gains. The Nasdaq Composite fell 105.59 points, or 0.71%, to close at 14,672.68, but notched a 1.2% gain for the month.
  • US crude oil futures climbed for a third day Friday after opening the week with two down days. The September contract gained $1.23 to close at $73.62 a barrel.
  • The US dollar index broke a four-session losing streak with a higher close to end the week.
  • US gold futures closed lower as the dollar advanced Friday. The August contract was down $18.60 at $1,812.60 per oz.

Recap for July 29

  • Crop scout findings that confirmed drought’s toll on US spring wheat yield potential pushed wheat futures higher Thursday. Spillover support and ideas that the same drought conditions could eat into soybean and corn yields pushed those futures higher as well. September corn advanced 8¾¢ to close at $5.58 a bu. Chicago September wheat advanced 16½¢ to close at $7.05¼ a bu. Kansas City September wheat added 15¢, closing at $6.74½ a bu. Minneapolis September wheat added 14¾¢ to close at $9.18½ a bu. August soybeans were up 2¼¢ to close at $14.34¼ a bu. August soybean meal edged up 40¢ to close at $356.50 a ton. August soybean oil advanced 0.38¢ to settle at 66.93¢ a lb.
  • US equity markets pushed higher Thursday after a Commerce Department report indicated gross domestic product grew at a 6.5% annual rate in the second quarter, up slightly from a 6.3% growth rate in the first three months of the year. The reading on the broadest measure of US goods and services produced fell below economists’ estimates but expanded the size of the economy above its pre-pandemic level, a milestone in the 14-month recovery. The DJIA and S&P 500 briefly rose near record highs before retreating by closing bells. The Dow Jones Industrial Average added 153.60 points, or 0.44%, closing at 35,084.53. The Standard & Poor’s 500 Index added 18.51 points, or 0.42%, to close at 4,419.15. The Nasdaq Composite added 15.68 points, or 0.11%, to close at 14,778.26.
  • US crude oil futures climbed for a second day Thursday after opening the week with two down days. The September contract gained $1.23 to close at $73.62 a barrel.
  • The US dollar index notched a fourth consecutive decline Thursday.
  • US gold futures jumped higher as the dollar eased. The August contract was up $31.50 at $1,831.20 per oz.

Recap for July 28

  • As the effects of drought on the hard red spring wheat crop were made clear to crop scouts on the Wheat Quality Council’s tour, supply concerns grew and wheat futures advanced sharply Wednesday. Corn futures edged higher after a choppy session in which traders grappled with sluggish export demand, declining crop ratings and forecasts for cooler temperatures next week. Technical buying and spillover strength from soybean oil futures boosted soybean futures. September corn edged up ½¢ to close at $5.49¼ a bu. Chicago September wheat advanced 14¼¢ to close at $6.88¾ a bu. Kansas City September wheat jumped 18¢, closing at $6.59½ a bu. Minneapolis September wheat soared 25½¢ to close at $9.03¾ a bu. August soybeans were up 13¾¢ to close at $14.32 a bu. August soybean meal declined $2.70 to close at $356.10 a ton. August soybean oil declined 0.29¢ to settle at 66.55¢ a lb.
  • US equity markets were mixed Wednesday after the Federal Reserve concluded a two-day meeting with its stance on monetary policy unchanged. The central bank said in a statement that the economy has made progress toward its employment and inflation goals, and it would continue to assess its stimulus programs in the coming months. The Dow Jones Industrial Average declined 127.59 points, or 0.36%, closing at 34,930.93. The Standard & Poor’s 500 Index eased 0.82 point, or 0.02%, to close at 4,400.64. The Nasdaq Composite added 102.01 points, or 0.70%, to close at 14,762.58.
  • US crude oil futures followed two down sessions with an advance Wednesday. The September contract gained 74¢ to $72.39 a barrel.
  • The US dollar index ended Wednesday lower, its third consecutive decline.
  • Except for the front-month, US gold futures continued to edge higher as the dollar eased. The August contract was down 10¢ at $1,799.70 per oz.

Recap for July 27

  • Unexpectedly lower crop condition ratings boosted soybean futures Tuesday. Corn futures were on an upward trajectory Tuesday morning before profit-taking sent them lower by the closing bell. Soft winter wheat futures also were higher early in the day before a round of profit-taking sent them lower. Winter wheat futures were higher after a Russian agriculture consultancy cut its forecast for the country’s 2021-22 wheat exports. Spring wheat futures notched gains a day after USDA condition ratings showed the crop was in worse shape than analysts thought. September corn fell 1¢ to close at $5.48¾ a bu. Chicago September wheat fell 2½¢ to close at $6.74½ a bu. Kansas City September wheat added 2½¢, closing at $6.41½ a bu. Minneapolis September wheat declined ½¢ to close at $8.78¼ a bu, though all later contracts advanced. August soybeans were up 5½¢ to close at $14.18¼ a bu; March 2022 and beyond were lower. August soybean meal added $5.20 to close at $358.80 a ton. August soybean oil declined 0.17¢ to settle at 66.26¢ a lb.
  • Losses in big tech stocks such as Amazon and Alphabet, along with airlines and cruise companies, pulled US equity markets lower, snapping their five-session win streak, even though several major tech companies reported sharply higher quarterly earnings. The Dow Jones Industrial Average declined 85.79 points, or 0.24%, closing at 35,058.52. The Standard & Poor’s 500 Index fell 20.84 points, or 0.47%, to close at 4,401.46. The Nasdaq Composite fell 180.14 points, or 1.21%, to close at 14,660.58, its largest one-day decline since May.
  • US crude oil futures were lower again Tuesday. The September contract eased 26¢ to $71.65 a barrel.
  • The US dollar index declined for a second day Tuesday after mostly closing higher the previous week.
  • US gold futures edged higher as the dollar continued to decline. The August contract was up 60¢ at $1,799.80 per oz.

Recap for July 26

  • Corn futures advanced to start the week Monday as trader concerns over political tension between the US and China were somewhat assuaged when export inspections showed the latter country continued to import US supplies. Soybean futures also advanced Monday as recent two-week lows had traders worrying the market was oversold and with support from a palm oil rally. Wheat futures were lower as export inspections generated concern about overseas demand for US wheat. September corn added 2½¢ to close at $5.49¾ a bu. Chicago September wheat fell 7¢ to close at $6.77 a bu. Kansas City September wheat also dropped 7¢, closing at $6.39 a bu. Minneapolis September wheat declined 4¾¢ to close at $8.78¾ a bu. August soybeans were up 11¾¢ to close at $14.12¾ a bu. August soybean meal was steady at $353.60 a ton; later months were mixed but mostly lower. August soybean oil advanced 0.77¢ to settle at 66.43¢ a lb.
  • US equity markets advanced Monday even as rising concerns about economic growth amid the COVID-19 Delta variant outbreak posed a challenge to the pace at which stocks have been rising. All three major indexes notched record-high closes for a second-straight session. The Dow Jones Industrial Average added 82.76 points, or 0.24%, closing at 35,144.31. The Standard & Poor’s 500 Index added 10.51 points, or 0.24%, to close at 4,422.30. The Nasdaq Composite edged up 3.72 points, or 0.03%, to close at 14,840.71.
  • US crude oil futures were mixed Monday, the two front months easing while November and December contracts were higher. The September contract eased 16¢ to $71.91 a barrel.
  • The US dollar index declined Monday following more than a week of mostly higher closes.
  • US gold futures continued to ease Monday despite the dollar’s lower turn. The August contract was down $2.60 at $1,799.20 per oz.

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