Grains end the day mixed | Friday, July 12, 2024

December corn closed up 4¢ this afternoon.

November soybeans closed down 2½¢.

All three September wheat contracts closed in the red. CBOT wheat is down 20½¢. KC wheat is down 16¢. Minneapolis wheat is down 21¼¢.

Earlier today USDA released the July World Agricultural Supply and Demand Estimates (WASDE) report.

“In anticipation of a bearish report the corn market started the day in the red, but rallied sharply upon the release of much lower than expected ending stocks data for both old crop and new,” says the Grain Market Insider newsletter by Stewart-Peterson Inc. “Unfortunately, weakness in neighboring wheat and soybeans limited corn's rally potential as it consolidated into the close with only moderate gains.

“Although the soybean market got an initial shot in the arm from the USDA report, the slight downward revisions to soybean ending stocks were more neutral than bullish and were not enough to overcome the bearish fundamentals of good growing conditions and slow export demand. Weakness in both soybean meal and oil also dragged on the soybean market with lower closes in both products.

“A surprise increase in U.S. wheat production and ending stocks help drive all three wheat classes lower on the day, with losses that largely outweigh yesterday’s gains. Rumors of a potentially revived Black Sea Grain Initiative and lower MATIF wheat likely added to the negativity.”

August live cattle closed up 13¢. August feeder cattle are up $2.50. August lean hogs are up $1.78.

August crude oil is down 41¢.

September S&P 500 futures are up 25 points. September Dow futures are up 212 points.

Published: 4:22 p.m. CT

Corn, soy, & wheat red ahead of WASDE: 9:27 a.m. CT

December corn is down 5¾¢ this morning.

November soybeans are down 7¢.

All three September wheat contracts are down as well. CBOT wheat is down 12¼¢. KC wheat is down 16¢. Minneapolis wheat is down 13¢.

This morning at 11 a.m. CT, USDA is expected to release the July WASDE report.

“The trade is braced for a bearish report that reinforces expectations for ample supplies of corn, soybeans, and wheat currently,” says Arlan Suderman, chief commodities economist for StoneX. “But the primary focus will be on the global balance sheet. Will USDA make notable changes to Black Sea wheat and corn production estimates, as well as Argentine and Brazilian corn production estimates? Modest reductions are expected, but traders would take notice if the declines are more significant, with positive implications for U.S. exports. The Black Sea continues to battle hot dry weather.”

Concerning Brazilian production, Bob Linneman, commodities broker with Kluis Commodity Advisors, says, “Brazil's Conab released updated supply and demand data yesterday, which included an increase to corn supply, since second-crop corn yielded better than expected. Soybean production was left unchanged.” Conab is Brazil’s agricultural agency.

August live cattle are down 23¢ this morning. August feeder cattle are up $1.00. August lean hogs are up $1.63.

August crude oil is up 49¢.

The U.S. Dollar Index September contract is down to 103.90.

September S&P 500 futures are up 26 points. September Dow futures are up 90 points.

Published: 9:27 a.m. CT