Soybeans close down nearly 20¢ | Tuesday, July 9, 2024

December corn ended the day up less than a penny.

November soybeans are down 19½¢.

September wheat contracts closed mixed. CBOT wheat is up 1½¢. KC wheat is up less than a penny. Minneapolis wheat is unchanged.

“Futures were mixed nearly all session today with grains on the plus side and soybeans posting deep losses,” says Karl Setzer, partner at Consus Ag Consulting. “A setback in the soy products and weaker energy values weighed on the soy complex, as did cheaper offers out of South America. Farmer sales have also picked up in Brazil as a stronger dollar is generating higher returns. A break in technical support added to the pressure on soybean futures. Grains managed to trade higher much of the session, taking support from oversold indicators and concerns over global production, mainly in the Black Sea and European Union.”

August live cattle closed down $2.00. August feeder cattle are down $3.45. August lean hogs are down $1.13.

“Cattle futures posted sharp losses following statements from the U.S. Federal Reserve that indicate no immediate cut in interest rates is expected,” says Setzer. “The possibility of higher rates is also still on the table according to Chairman Jerome Powell. This immediately generated ideas we will see a reduction in red meat demand, especially to high-end cuts of beef. Powell also stated that what happens in the labor market will have an impact on future rate adjustments. Both feeder and live cattle futures plummeted on this news, along with long liquidation.”

August crude oil is down 92¢.

September S&P 500 futures are up 6 points. September Dow futures are down 54 points.  

Published: 5:02 p.m. CT

Corn in the green this morning: 9:52 a.m. CT

December corn is up a penny this morning.

November soybeans are down 10¾¢.

September wheat contracts are in the green. CBOT wheat is up 2¾¢. KC wheat is up 3¼¢. Minneapolis wheat is up 1¼¢.

“The remnants of Hurricane Beryl are currently tracking into the southern Midwest amid expectations that they will bring much-needed moisture to portions of Missouri, Illinois, Indiana, and Ohio over the next couple of days.” says Arlan Suderman, chief commodities economist for StoneX. “That moisture is expected to boost corn and soybean yield potential in the region, which could make up for losses from the June flooding in the northwest Midwest.

“National crop ratings are not perfect, but they’re the best thing that we have to take the emotions out of assessing crops, and they’re the envy of the world for doing that job. The crop ratings don’t account for changes in harvested area, but they do a pretty good job historically of telling us what the yield potential is for those acres that will be harvested. Both the corn and soybean crop ratings currently remain above historical averages, suggesting that trend or higher national average yields are still possible. Based on current demand projections, that would suggest new-crop corn ending stocks north of 2.2 billion bushels, with new-crop soybean ending stocks continuing to have a ‘4’ handle. That explains their current price weakness.”

USDA is expected to release the July World Agricultural Supply and Demand Estimates (WASDE) report this Friday.

August live cattle are up $1.25. August feeder cattle are up $1.08. August lean hogs are up 33¢.

August crude oil is down 16¢.

In her morning market update, Naomi Blohm, senior market adviser with Total Farm Marketing, quoted the Dow Jones Newswire's oil price commentary: “Oil futures are lower on expectations of limited damage to energy infrastructure from Hurricane Beryl, which caused flooding, several deaths and knocked out power to several million users in the Houston area. The impact on offshore production is also expected to be minimal although several companies evacuated platforms before the storm. The market is likely to turn its focus back to the demand outlook, with monthly updates this week from OPEC and the International Energy Agency. The [Energy Information Agency's] (EIA) short-term energy outlook is due today.”

The U.S. Dollar Index September contract is up to 104.80.

September S&P 500 futures are up 7 points. September Dow futures are down 144 points.

Published: 9:52 a.m. CT