Corn ends day in the red but still higher week-over-week | Friday, June 7, 2024

July corn ended the day down 3¼¢ but up 2½¢ from last Friday’s close.

July soybeans are down 20¾¢ for the day and down nearly 26¢ week-over-week.

CBOT wheat ended the day down 12¢. KC and Minneapolis wheat closed the day down 12¼¢.

“A sharp rally in the U.S. dollar drew in the bulk of any managed money and fund buying interest today, and generated losses in commodities as a result,” says Karl Setzer, partner at Consus Ag Consulting. “Benign weather forecasts for the United States and breaking technical support added to the day’s losses. The greatest losses for the day were in the soy complex as uncertainty grew over the proposed tax rate change to Brazilian exports. Soybeans took additional pressure from slowing Chinese imports on a whole, even with a flash sale to them today of 104,000 metric tons for old crop shipment. Grains struggled from improving global production outlooks, which are countering the solid export sales we have seen in recent weeks. The lack of urgency in global trade weighed on all commodities today, as did the path of least resistance for futures being downward.”

Concerning the proposed Brazilian tax plan, Matthew Kruse, President of Commstock Investments, says “It looks like the plan is set up for four months at which time [it] will need additional approval to continue. I think everyone is still scrambling trying to understand the ramifications of it. But the first impression is that it would hurt domestic offers and perhaps make the export price less attractive, putting the U.S. on equal footing. That remains to be seen.”

Live cattle closed down 30¢. Feeder cattle are up $2.08. Lean hogs are up 53¢.

Crude oil is currently down 29¢.

S&P 500 futures are down 11 points. Dow futures are down 115 points.

Published: 3:19 p.m. CT

Soy and wheat posting double-digit losses 9:45 a.m. CT

July corn is down 6¼¢.

July soybeans are down 14¢.

CBOT wheat is down 14¢. KC wheat is down 17½¢. Minneapolis wheat is down 11½¢.

This morning USDA announced China is buying 104,000 metric tons of soybeans for the 2023/2024 marketing year.

“Grain and soybean futures are mostly lower this morning, pressured by a favorable Midwest weather outlook, lack of bullish demand news, and technical selling in wheat,” said The Brock Report prior to the 8:30 a.m. CT market open. “... In outside financial markets, the dollar index is surging this morning, up 0.6% after the monthly jobs report.

“... Today’s jobs report was a mixed bag, with the [U.S. Department of Labor] reporting non-farm payrolls in May up 272,000, compared to 165,000 in April and well above the average Wall Street estimate of 190,000. This indicates a stronger-than-expected job market and it helped send the dollar index surging, as it makes an interest rate cut from the [U.S. Federal Reserve] seem less likely any time soon. However, the report also unexpectedly hiked the unemployment rate to 4.0%, from 3.9% last month, and the labor participation rate fell.

“Midwest weather is key this time of year, and headed into the weekend there is not much to get bullish about. World Weather Inc. says the Midwest will see more sunshine than rain over the next two weeks, which will allow planting to reach the finish line in most places, ‘while the moisture will keep soil conditions favorable in nearly all areas.’”

Live cattle are up 60¢ this morning. Feeder cattle are up $1.83. Lean hogs are down 40¢.

Crude oil is currently up 64¢.

The U.S. Dollar Index September contract is currently up to 104.44.

S&P 500 futures are down less than a point. Dow futures are up 87 points.

Published: 9:45 a.m. CT