Wheat futures fall on better-than-expected ratings

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Kansas City Wheat Futures — Source: Sosland Publishing Co.

Recap for November 7

Better-than-expected winter wheat crop conditions — about 50% of the US crop was in good-to-excellent condition on Nov. 5 — pressured wheat futures Tuesday, with KC hard red winter futures leading the way down. Nearby soybeans rose to a two-month high on adverse weather conditions in export competitor Brazil, but deferred months declined. Corn futures dropped as traders awaited updated supply-demand estimates Thursday amid expectations of slightly increased US corn production and yield estimates. December corn futures were down 8¾¢ at $4.68½ per bu. Chicago December wheat dropped 5½¢ to close at $5.70¼ per bu. Kansas City December wheat fell 13¼¢ to close at $6.32½ per bu. Minneapolis December wheat fell 4½¢ to close at $7.24¼ per bu. November soybeans rose 8¼¢ to close at $13.48¾ per bu; all subsequent months were lower. December soybean meal added $9.90 to close at $447.40 per ton; December soybean oil shed 1.31¢ to close at 49.49¢ a lb.

As Treasurys continued to rally — the yield on 10-year notes fell to 4.57% from 5% last month — tech stocks behind the earlier 2023 rally resumed their climb, helping the major indexes move higher Tuesday, the Nasdaq for the eighth straight trading day. The Dow Jones Industrial Average added 56.74 points, or 0.17%, to close at 34,152.60. The Standard & Poor’s 500 edged up 12.4 points, or 0.28%, to close at 4,378.38. The Nasdaq Composite added 121.08 points, or 0.9%, to close at 13,639.86.

US crude oil prices fell Tuesday. The December West Texas Intermediate light, sweet crude future was down $3.45 to close at $77.37.

The US dollar index strengthened again Tuesday after touching a six-week low near the end of the previous week.

US gold futures pulled lower as the dollar maintained an upside surge. The December contract was down $15.10 to close at $1,973.50 per oz.

Recap for November 6

Dry conditions in Argentina and weather woes in Brazil each helped push US soybean futures higher Monday. Brazil also is a major corn exporter, but traders were content to wait and see the impact on corn, leaving the nearby corn future unchanged. Wheat futures popped higher, some contracts for a fourth straight day, as recent weakness in the US dollar supported grain markets. December corn futures were steady at $4.77¼ per bu; later months were mixed within a minuscule range. Chicago December wheat added 3¼¢ to close at $5.75¾ per bu. Kansas City December wheat added 2¼¢ to close at $6.45¾ per bu. Minneapolis December wheat gained 7¾¢ to close at $7.28¾ per bu. November soybeans rose 13¢ to close at $13.40 per bu. December soybean meal fell $4.60 to close at $437.50 per ton; later months were mixed. December soybean oil added 1.44¢ to close at 50.80¢ a lb.

US equity indexes capitalized on the previous week’s rally and closed with small gains Monday on continued investor hopes the Federal Reserve’s sharp course of interest rate hikes has concluded. The Dow Jones Industrial Average added 34.54 points, or 0.1%, to close at 34,095.86. The Standard & Poor’s 500 edged up 7.64 points, or 0.18%, to close at 4,365.98. The Nasdaq Composite added 40.5 points, or 0.3%, to close at 13,518.78.

US crude oil prices advanced Monday. The December West Texas Intermediate light, sweet crude future was up 31¢ to close at $80.82.

The US dollar index strengthened Monday after touching a six-week low near the end of the previous week.

US gold futures pulled lower as the dollar turned higher. The December contract was down $10.60 to close at $1,988.60 per oz.

Recap for November 3

The US dollar index closed lower for a second day Friday, touching a six-week low.

US soybean futures on Friday touched a 6½-week high and closed higher, lifted by uneven crop weather in top export competitor Brazil, signs of export demand for US supplies and a plunge in the dollar that bolstered corn and wheat futures as well. All three commodities got an upside injection from Labor Department data showing US job growth slowed more than expected in October, highlighting views that the Federal Reserve may be done hiking interest rates. December corn futures added 7¼¢ to settle at $4.77¼ per bu. Chicago December wheat added 7¢ to close at $5.72½ per bu. Kansas City December wheat added 2¢ to close at $6.43½ per bu. Minneapolis December wheat jumped 10¼¢ to close at $7.21 per bu. November soybeans soared 23½¢ to close at $13.27½ per bu. December soybean meal rose $15.80 to close at $442.10 per ton. December soybean oil dropped 0.96¢ to close at 49.36¢ a lb.

Investors sent equity markets higher Friday, helping the S&P 500 to its best week since November 2022, on optimism for a soft landing following the Fed’s aggressive rate-hike course this year. The Dow Jones Industrial Average added 222.24 points, or 0.66%, to close at 34,061.32. The Standard & Poor’s 500 jumped 40.56 points, or 0.94%, to close at 4,358.34. The Nasdaq Composite soared 184.09 points, or 1.38%, to close at 13,478.28.

US crude oil prices reverted to the low side Friday. The December West Texas Intermediate light, sweet crude future shed $1.95 to close at $80.51.

US gold futures ascended as the dollar dipped. The December contract was up $5.70 to close at $1,999.20 per oz.

Recap for November 2

US soybean futures rose on Thursday with Chinese demand driving the market. China said its soybean imports are likely to stay high through the fourth quarter. Analysts and traders said that could take 2023 purchases to an all-time record. Wheat prices also rose, with support from short covering and a weaker dollar. Corn dropped on reports of higher US yields. December corn futures fell 5¢ to settle at $4.70 per bu. Chicago December wheat added 3¾¢ to close at $5.65½ per bu. Kansas City December wheat advanced 1½¢ to close at $6.41½ per bu. Minneapolis December wheat edged up 1¾¢ to close at $7.10¾ per bu; December 2024 and beyond were unchanged. November soybeans jumped 12¾¢ to close at $13.04 per bu. December soybean meal fell $4.10 to close at $426.30 per ton; later months were mixed in a narrow range. December soybean oil added 0.42¢ to close at 50.32¢ a lb.

US equity markets closed higher, spurred by Wednesday’s comments from Federal Reserve chairman Jerome Powell that the central bank’s extraordinary path of interest rate increases this year could remain on pause for now. The Dow Jones Industrial Average soared 564.5 points, or 1.7%, to close at 33,839.08. The Standard & Poor’s 500 advanced 79.92 points, or 1.89%, to close at 4,317.78. The Nasdaq Composite jumped 232.72 points, or 1.78%, to close at 13,294.19.

US crude oil prices flipped to the high side Thursday. The December West Texas Intermediate light, sweet crude future added $2.02 to close at $82.46.

The US dollar index wrapped up a two-day rally with a weaker close Thursday.

US gold futures ascended as the dollar eased. The December contract was up $6 to close at $1,993.50 per oz.

Recap for November 1

Spring wheat futures were mixed in a narrow range Wednesday, but winter wheat futures mostly advanced in technical trading and on Black Sea supply concerns after Ukraine said Russia had dropped explosive devices into the path of civilian vessels three times in the past day. Better-than-expected yields during the domestic harvest and improved cropping weather in South America pressured corn futures. Soybean futures edged higher in technical trading with rallies limited by South American weather and Brazil’s likely large crop. December corn futures fell 3¾¢ to settle at $4.75 per bu. Chicago December wheat added 5½¢ to close at $5.61¾ per bu. Kansas City December wheat jumped 10¾¢ to close at $6.40 per bu. Minneapolis December wheat eased ¼¢ to close at $7.09 per bu; later months were mixed in a narrow range. November soybeans rose 4¼¢ for a second day to close at $12.91¼ per bu. December soybean meal eased 60¢ to close at $430.40 per ton, though all subsequent contracts advanced. December soybean oil lost 1.52¢ to close at 49.90¢ a lb.

A day after notching a third straight month of declines, US equity markets popped higher Wednesday after Federal Reserve chairman Jerome Powell said the recent jump in bond yields is pushing up borrowing costs in ways that could ease price pressures and slow the robust US economy, which could affect the central bank’s monetary policy moving forward. The Dow Jones Industrial Average added 221.71 points, or 0.67%, to close at 33,274.58. The Standard & Poor’s 500 advanced 44.06 points, or 1.05%, to close at 4,237.86. The Nasdaq Composite jumped 210.23 points, or 1.64%, to close at 13,061.47.