Corn is trading significantly higher this morning following yesterday’s lower close. December futures have broken through recent resistance and may be targeting the gap on the chart at $4.32-3/4. Funds may be covering short positions ahead of a potentially hot and dry August.
There have been recent reductions in area on the drought monitor, but both the 6-10 day and 8-14 day forecast show below normal precipitation throughout the Southern half of the Corn Belt which will be accompanied with above normal temperatures.
Yesterday’s export sales report saw corn sales falling to 664k tons from last week’s 2,151k tons. This compared to 924k tons a year ago, and top buyers were Japan, Mexico, and Colombia.
Soybeans are trading higher this morning and have also broken above their recent resistance levels and are only 5 cents away from filling the gap on the November chart at $10.44-1/4. The potentially hot and dry August is most supportive for bean prices.
Both soybean meal and oil are trading higher as well, but August soybean oil has rallied sharply on demand for biofuel and is now trading at the highest level since August 2023.
Yesterday’s export sales were good for soybeans at 802k tons which compared to 751k the previous week and 735k a year ago. Top buyers were Mexico, unknown, and Taiwan.
All three wheat classes are trading higher taking back all of yesterday’s losses and then some on the updated hot/dry weather forecast. Yesterday, KC wheat contracts traded at new contract lows.
The European Union has put sanctions on Russia and has specifically targeted the petroleum industry which could boost prices as Russia exports a lot of wheat to Europe.
Yesterday’s export sales report saw wheat sales at 494k tons which compared to 577k last week and 579k a year ago at this time. Top buyers were Mexico, Venezuela, and South Africa.
Grain Market Insider is provided by Stewart-Peterson Inc., a publishing company.
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