Wheat closes in the red, Soybeans up 11¢ | August 24, 2023

Grain futures closed out the day similarly to how they were trading at midday. November soybeans were up 11¢, December corn was down 3¢, while wheat was down 7¢ to 9¢. After the close, there were further reports from crop tours indicating slightly disappointing numbers for both corn and soybeans. Will we see that headline trigger some buying tonight when grains resume trading? 

Livestock futures were able to hold the gains into the close today. November feeder cattle were up $2.35 while October live cattle were up $2.20. October lean hogs were up $2.22 at the close. The strong close today put all the contracts mentioned above the 20-day average. Will we see similar strength to end the week?

The stock market continued to see selling pressure build as the day went on. The early session gains were quickly given back as traders digest the possible implications of global slow down if China is on verge of economic slowdown. Crude oil managed to close quietly higher today in the face of the sell-off in the stock market and a higher US dollar. Will the crude bulls be able to hold their ground tomorrow if the stocks get hit with more selling pressure?

2:45 p.m. CDT

Wheat down at midday: 12 p.m. update

Grain prices remain mixed at the noon hour today. December corn is down 3¢ and November soybeans are up 10¢. CBOT wheat is down 6¢, KC wheat is down, 3¢ and spring wheat is down 4¢. We don't often discuss oats, but the December oats are up over 20¢ today. The December contract is up over 70¢ since the Aug. 8 low. With updates to Canadian production information this week, traders are adding further risk premium to the oat market.

Livestock futures have turned sharply higher after a slow start to the day. November feeder cattle are up $2.25, October live cattle are up $1.55, and October lean hogs are up $1.55. Rumors of slowing demand earlier in the week are being countered with reports of lower supply today. 

The US dollar index remains stronger as futures are up 0.48 at 103.82. Crude oil is holding on to small gains while the stock market has reversed from earlier gains to now trading near the lows of the day. If the stock market continues to see selling pressure through the remainder of the day, we could see crude oil turn negative as well.

12 p.m. CDT

Grain mixed in early trading: 8:45 a.m. update

Grain prices are mixed after the opening bell this morning. Corn and wheat futures are negative while soy beans remain positive. December corn futures are down 5¢, November soybean futures are up a 5¢, CBOT wheat is down 9¢, KC wheat is down 7¢, and spring wheat is down 3¢. 

Livestock futures are mixed this morning. Feeder cattle are up 25¢, live cattle are down 35¢, and lean hogs are up 50¢. There is chatter about domestic beef demand declining now that summer is coming to an end.

U.S. dollar index is approaching the highs from Wednesday after briefly trading below the Wednesday low overnight. A convincing move over 104 could open the door for the bulls to make a run at 105. Traders are anxiously awaiting the Federal Reserve chairman comments Friday after the conclusion of the Jackson Hole summit.

Crude oil futures are down $1.25 this morning. Traders are concerned about recent global economic reports that would suggest we are not yet in the clear in the battle against inflation.

8:45 a.m. CDT

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About the Author: Bob Linneman is a commodities broker with Kluis Commodity Advisors. Linneman grew up on a diverse farm in eastern South Dakota. Between milking cows, managing a beef herd, and farming various crops, he experienced many aspects of agriculture firsthand. After graduating from North Dakota State University with a degree in business, he moved to Hawaii with his wife. There he was an associate portfolio manager for a fixed income firm that managed $2 billion in assets. After nearly two years in Hawaii, he moved back to the Midwest and began his career in commodities. Linneman is licensed as a Series 3 and Series 30 commodity broker.

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