Corn and soy rebound well, ending the day higher | Tuesday, June 28, 2022

U.S. grain prices ended the trade on Monday higher. July corn rose 15 ¼ cents and December corn 6 ¼ cents. July soybean futures were 33¼ cents higher and November beans 29¾ cents higher. July Chicago wheat closed up 17¼ cents. Kansas City wheat in July closed up 11 cents and Minneapolis wheat in July closed down 6 ¾ cents.

Livestock prices ended the day mostly down. Live cattle futures ended the day up 5 cents on the June contract. August feeder cattle closed down $2.30 and July lean hog futures closed the day down 25 cents.

Crude oil is up $2.16 and Dow futures were down 490 points.

A nice rebound in corn and soybean prices today. The combination of a lower crop note released yesterday and news of China opening up its economy gave corn and soybeans a much-needed boost after Monday’s tough day.

July corn futures closed above the 20-day moving average, but we will need to close above $7.63 tomorrow to confirm that a short-term bottom is in place. July soybeans closing above $16.56 is friendly. The resistance at $16.91 is the 20-day moving average and could be tested again here this week.

Livestock markets didn’t work very well here today. The struggling economy and recession talks seem to be taking center stage. As summer approaches the mid-summer, many traders are wondering how good our demand will be for the US and pork as we approach the latter half of the summer.

US equity markets tried to rally today, but we always seem to backtrack and talk about a recession. After trading higher to start the day and closing lower, it will be difficult for stock market bulls to gain traction.

Grain prices rise at noon: 10:45 a.m.

By midday, July corn futures are up 15-16 cents and December corn futures are up 8-9 cents. July soybean futures are 25 cents higher and November futures up 26-27 cents. July Chicago wheat is 17 cents higher. Kansas City July wheat is 11 cents higher and Minneapolis July wheat is 5 cents higher.

Livestock prices are mixed with live cattle up 42 cents, feeder cattle $1.55 lower and lean hogs down 17 cents per hundred.

Crude oil is up $1.22 this morning and Dow Jones futures are down 172 points.

Grain prices are rebounding today. The crop ratings fell a bit more than expected in the weekly report and with the drier outlook many traders are suggesting that we could see the ratings drop again next week.

With the upcoming US Planted Acres report and Quarterly Stocks report due out on Thursday, we have seen a decline in open interest in corn and soybeans. The main reason for the decline in open interest is that the June 30 report tends to have some volatility. With the potential increased volatility, we are seeing some traders choosing to sit on the sidelines.

Discussions on opening up the Chinese economy are having a positive impact on energy prices. This news also carries over to grain prices, which provides further support, especially as we see the strength of the soybean complex.

Livestock prices are struggling today. Bullish fundamentals provide support. However, recession talk and fears have traders reluctant to be big buyers today.

A close above $7.62 for corn in July and a close above $16.55 for soybeans in July would support grain prices.

Grain prices higher to start morning trade: 9:01 a.m.

US grain prices are higher this morning. July corn futures are 8 to 10 cents higher. Soybean futures prices in July are 16 to 18 cents higher. July Chicago wheat is 21 cents higher. Kansas City July wheat futures are 14 cents higher and Minneapolis July wheat futures are 5 cents higher.

Livestock prices are mixed this morning. Live cattle cost 75 cents less. Feeder cattle are $1.35 lower and lean hog futures are 83 cents higher.

Crude Oil is up $1.17 this morning, and the stock market is up 150 points to start trading today.

Yesterday’s Crop Progress report showed that the ratings for corn and soybeans fell 3% from the good/excellent category. The trade was expecting a 1% to 2% drop in ratings. With drier forecasts, we see sustained grain prices this morning.

Livestock markets are mixed here this morning. Cattle is caught between supportive fundamentals but an investor reluctant to engage in recessionary talks. Lean high prices exploded higher in China yesterday. As China begins to reopen after the COVID shutdowns, the consumer there is busy going out and spending money.

On the outside markets, we are seeing equities rebound and Crude Oil rise on news of China’s reopening.

Look for choppy but firm trading today as traders position themselves ahead of the USDA Planted Acres report and quarterly inventory report, which will be released Thursday at 11 a.m. Central Time.

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About the Author: Cory Bratland is the youngest of five children who grew up on the family farm near Willow Lake, South Dakota. Bratland attended Willow Lake High School and earned an AAS degree in agricultural business management at Lake Area Technical Institute in Watertown, South Dakota. He began his career as a cash grain marketer and grain trader with Cargill, Inc. While working for Cargill, Inc., Bratland held various merchandising jobs in South Dakota and Minnesota. In 2003, he obtained a Series 3 and 30 commodity broker license. In 2008, Bratland left Cargill to become an independent commodity broker, launching Prairie Ag Marketing Services. In 2009, it partnered with Al Kluis as an affiliate office. In 2010 he became Chief Grain Strategist at Kluis Commodity Advisors. In addition to working with Al on marketing strategies on a daily basis, Bratland also serves private clients through Kluis Publishing and Prairie Ag Marketing. He lives near Willow Lake, South Dakota, with his wife Erica and children, Hunter, Elliot and Isabella. He is still actively involved in the family farm which produces corn, soybeans, alfalfa and also operates a cow/calf operation.

Editor’s note: The risk of loss when trading futures and/or options is substantial, and each investor and/or trader should consider whether it is a suitable investment. Past performance – whether actual or indicated by simulated historical testing of strategies – is not indicative of future results. Trading advice reflects good faith judgment at the time and is subject to change without notice. There is no guarantee that the advice given will result in profitable transactions.

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