Wheat is in the green at closing | Wednesday, September 6, 2023

Kluis says corn markets sold off into the close, with wheat holding onto most of the early gains.

corn-money-close-up
Photo: iStock: larryhw

The corn markets sold off into the close with wheat holding onto most of the early gains. The correction today was mostly about the flow of money with funds buying back short wheat and selling corn.

Soybeans closed higher, but well off the early session high. Harvest is moving into the southern Corn Belt and with that some hedge pressure in the corn and soybean market that always develops this time of year.

Corn closed up ½¢ to be down 1¢. Soybeans closed up 11¢ in both the September and November contracts. Wheat closed 10¢ higher on the CBOT — 20¢ higher in Minneapolis and 25¢ higher in the KC wheat.

My update of the daily chart shows first that corn, soybeans, and wheat may have put in the weekly low on Tuesday. Wheat was able to close above resistance signaling a possible major low. Crude oil keeps moving higher which is a positive signal for the entire commodity complex.

In the outside markets, the stock market is lower again today with the Dow down 190 points at this time. The U.S. dollar is up 6 points today, Crude oil after a lower start today is now up $1 per barrel.

Livestock futures closed mixed. November feeder cattle on a late rally closed up $2.00 at $258.20, October live cattle closed up $2.75 at $182.70, October lean hogs after opening higher closed down $1.30 at $81.87.

Published: 1:50 p.m. CDT

Grains hold position at midday: 10:50 a.m. CDT

The grain markets are holding onto the early gains as traders’ factor in declining crop conditions against the eventual hedge pressure that will develop at harvest. The wheat market which has been a drag on corn and soybean prices looks like it has posted a seasonal low.

At this time corn is up 3¢ at $4.89 per bushel 1¢ off the high, soybeans are up 15¢ to 5¢ off the high and wheat futures are 14¢ to 24¢ higher, right at the high.

As I mentioned this morning, the key chart levels I am watching is at $4.90 for December Corn — so far that has held. Although prices are knocking on the door, for soybeans prices are higher and still just below resistance at $13.85. A close above that key resistance level at 1:15 today will be a good sign for the bulls. For December CBOT wheat that key chart resistance is at $6.13.

In the outside markets, the stock market is making new lows for the day and week with the Dow now down 60 points, The U.S. dollar is down 12 points today, Crude oil after a lower start today is now up 20¢ a barrel making new highs for 2023.

Livestock futures are now mixed. November feeder cattle have turned lower–last trade futures are down 10¢, and October live cattle are up 72¢. After opening higher, October lean hogs are now down 85¢.

Published: 10:50 a.m. CDT

Corn continues to climb: 9:20 a.m. CDT

The USDA Crop Progress report on crop conditions came in lower than expected with corn ratings down 3% to 53% good to excellent. Soybean ratings fell by 5% to 52% good to excellent. This and disappointing initial yield reports have corn and soybeans higher.  

At this time corn is up 1¢ per bushel 3¢ off the high, soybeans are up 13¢, just 6¢ off the high, and wheat futures are 4¢ to 12¢ per right at the high. 

The key chart points to watch over the next two hours are if December corn can get up and over $4.90, for November soybeans the resistance is at $13.85.

Around the world in the stock markets: The stock market in China is up 0.2% and in Japan the stock market is up 0.6%. European stocks are down 0.6%  

In the outside markets, the stock market is lower again with the Dow down 80. The U.S. dollar is down 12 points today, Crude oil after a lower start today is now up 20¢ a barrel making new highs for 2023.

Livestock futures are higher today. November feeder cattle have turned higher – last trade futures are up 77¢, October live cattle are up 70¢, October lean hogs are up 25¢. 

Published: 9:20 a.m. CDT

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

Editor's Note: The risk of loss in trading futures and/or options is substantial, and each investor and/or trader must consider whether this is a suitable investment. Past performance – whether actual or indicated by simulated historical tests of strategies – is not indicative of future results. Trading advice reflects good-faith judgment at a specific time and is subject to change without notice. There is no guarantee the advice given will result in profitable trades.

About the Author: Al Kluis has been a commodity advisor and broker since 1976. Kluis is an introducing broker with Wedbush Futures and writes a column, Your Profit, which appears in every issue of Successful Farming magazine. Kluis has published two books on commodities trading and is commonly quoted in major publications including the Wall Street Journal. 

  

.

Was this page helpful?

Related Articles