Plains rains boost nascent wheat crop, pressure futures

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Recap for October 26

US equity markets declined Thursday amid retreating US Treasury yields and US gross domestic product data indicating the US economy grew at its fastest pace in nearly two years. The Dow Jones Industrial Average fell 251.63 points, or 0.76%, to close at 32,784.30. The Standard & Poor’s 500 dropped 49.54 points, or 1.18%, to close at 4,137.23. The Nasdaq Composite sank 225.62 points, or 1.76%, to close at 12,595.61, notching its worst two-day decline of 2023. Technology stocks a day earlier recorded their worst single-day performance in eight months.

Wheat complex futures were mostly higher on Thursday, some contracts rising from two-week lows on statements from three Black Sea-area groups contradicting Ukraine’s denial that the alternate Black Sea shipping corridor had been shut down. Corn futures eased slightly a day after sinking to three-week lows. Beneficial South American rains continued to pressure corn and soybean futures. December corn futures ticked down ¾¢ to settle at $4.79¼ per bu. Chicago December wheat added 11¢ to close at $5.79½ per bu. Kansas City December wheat gained 5¾¢ to close at $6.54¾ per bu. Minneapolis December wheat advanced 3½¢ to close at $7.24¼ per bu; December 2024 and beyond declined. November soybeans lost 8¾¢ to close at $12.79½ per bu. December soybean meal added 30¢ to close at $429.50 per ton, though all subsequent contracts declined. December soybean oil dropped 0.86¢ to close at 51.74¢ a lb.

US crude oil prices were lower Thursday. The December West Texas Intermediate light, sweet crude future fell $2.18 to close at $83.21.

For a third straight day, the US dollar index closed higher Thursday.

US gold futures advanced despite the dollar continuing to strengthen. The October contract expiring Friday added $3.10 to close at $1,987.20 per oz and the December contract added $2.50 to close at $1,997.40 per oz.

Recap for October 25

Favorable rains in the US southern Plains and cropping areas in South America weighed on wheat, corn and soybean futures Wednesday. Late-planted Argentinian wheat also got a boost from weekend rains, further pressuring US wheat futures. The US rains are a boon to hard red winter wheat crops in the central and southern Plains that were recently seeded in drought conditions in Kansas, Oklahoma and Texas. Precipitation will delay corn and soybean harvests, but combines made good progress in the week to date. December corn futures fell 4¢ to settle at $4.80 per bu. Chicago December wheat dropped 12¢ to close at $5.68½ per bu. Kansas City December wheat sank 14¢ to close at $6.49 per bu. Minneapolis December wheat declined 7½¢ to close at $7.20¾ per bu. November soybeans fell 7¢ to close at $12.88¼ per bu. December soybean meal dropped $5 to close at $429.20 per ton. December soybean oil advanced 1.28¢ to close at 52.60¢ a lb.

Declines in the shares of technology companies pressured US equity markets Wednesday and nine of the S&P 500’s sectors were lower. Treasury yields pushed higher, and investors were parsing mixed messages from earnings reports from such companies as Microsoft and Alphabet. The Dow Jones Industrial Average fell 105.45 points, or 0.32%, to close at 33,035.93. The Standard & Poor’s 500 dropped 60.91 points, or 1.43%, to settle at 4,186.77. The Nasdaq Composite dropped 318.65 points, or 2.43%, to close at 12,821.22.

US crude oil prices were higher Wednesday. The December West Texas Intermediate light, sweet crude future added $1.65 to close at $85.39.

The US dollar index strengthened for a second day on Wednesday after a three-session downturn.

US gold futures advanced despite the dollar continuing to strengthen. The October contract added $9.10 to close at $1,984.10 per oz.

Recap for October 24

A rally that sent soymeal futures to March highs on Tuesday helped turn around soybean futures that had fallen to their lowest levels since Oct. 16. A rapid harvest pace and technical selling sent corn futures lower for a third day to near-two-week lows. Wheat futures declined in technical selling and lackluster exports. December corn futures subtracted 6¼¢ to settle at $4.84 per bu. Chicago December wheat lost 6¾¢ to close at $5.80½ per bu. Kansas City December wheat dropped 7¾¢ to close at $6.63 per bu. Minneapolis December wheat declined 9½¢ to close at $7.28¼ per bu. November soybeans added 8½¢ to close at $12.95¼ per bu. December soybean meal advanced $13.70 to close at $434.20 per ton. December soybean oil dropped 0.62¢ to close at 51.32¢ a lb.

Investors awaiting a deluge of corporate earnings bought shares Tuesday and helped US equity markets stay green the whole session as the 10-year Treasury yield inched higher. The Dow Jones Industrial Average added 204.97 points, or 0.62%, to close at 33,141.38. The Standard & Poor’s 500 advanced 30.64 points, or 0.73%, to settle at 4,247.68. The Nasdaq Composite was up 121.55 points, or 0.93%, to close at 13,139.87.

US crude oil prices were lower Tuesday. The December West Texas Intermediate light, sweet crude future dropped $1.75 to close at $83.74.

The US dollar index flipped direction and closed higher Tuesday after a three-session downturn.

US gold futures eased again Tuesday as the dollar strengthened. The October contract fell $1.30 to close at $1,975 per oz.

Recap for October 23

Strong yields and increased farmer selling pressured corn and soybean futures on Monday. The latter also was under pressure from rainy forecasts for export competitor Brazil where growers have been slowly sowing the crop in hot, dry weather. Wheat futures were mixed with winter wheat futures edging higher nearby on bargain buying and export demand for US soft red winter wheat. Still, export inspections fell below the range of trader expectations. Minneapolis spring wheat futures were higher, but gains were limited by the weakness in corn and soybeans. December corn futures fell 5¼¢ to settle at $4.90¼ per bu. Chicago December wheat added 1¼¢ to close at $5.87¼ per bu; July 2024 and beyond eased. Kansas City December wheat added ¾¢ to close at $6.70¾ per bu. Minneapolis December wheat advanced 7¢ to close at $7.37¾ per bu. November soybeans declined 15½¢ to close at $12.86¾ per bu. December soybean meal pared $3.40 to close at $420.50 per ton, though May 2024 and months beyond were higher. December soybean oil dropped 1.45¢ to close at 51.94¢ a lb.

US equity markets on Monday posted a mixed response after a bonds selloff lasting several months helped push the 10-year US Treasury yield above 5% Monday morning for the first time in 16 years. For some investors, that presented a buying opportunity and they quickly pushed yields back to 4.836%. Consolidation in the oil patch and falling US crude oil prices made energy sector shares the day’s biggest losers. The Dow Jones Industrial Average dropped 190.87 points, or 0.58%, to close at 32,936.41. The Standard & Poor’s 500 eased 7.12 points, or 0.17%, to settle at 4,217.04. The Nasdaq Composite pulled ahead 34.52 points, or 0.27%, to close at 13,018.33.

US crude oil prices were lower Monday. The December West Texas Intermediate light, sweet crude future pulled back $2.59 to close at $85.49.

The US dollar index weakened for a third trading day Monday.

US gold futures at the start of the week slumped lower despite the dollar doing the same. The October contract fell $6.20 to close at $1,976.30 per oz.

Recap for October 20

Wheat futures were mostly lower Friday as volatility and corn market weakness encouraged pre-weekend profit-taking. Profit-taking also brought corn futures lower after hitting their highest prices since August on Friday. Soybean futures retreated from a one-month high under harvest pressure. December corn futures fell 9½¢ to settle at $4.95½ per bu. Chicago December wheat shed 8¢ to close at $5.86 per bu; December 2024 and beyond were higher. Kansas City December wheat fell 6¼¢ to close at $6.70 per bu. Minneapolis December wheat was down 8¼¢ to close at $7.30¾ per bu. November soybeans dropped 13¼¢ to close at $13.02¼ per bu. December soybean meal added 90¢ to close at $423.90 per ton, though later months were mixed. December soybean oil added 0.28¢ to close at 53.39¢ a lb; later months were mixed.

US stock indices were lower Friday and lower for the week with influence from declining shares of financial institutions. The Dow Jones Industrial Average dropped 286.89 points, or 0.86%, to close at 33,127.28. The Standard & Poor’s 500 fell 53.84 points, or 1.26%, to settle at 4,224.16. The Nasdaq Composite sank 202.37 points, or 1.53%, to close at 12,983.81.

US crude oil prices were lower Friday. The expiring November West Texas Intermediate light, sweet crude future shed 62¢ to close at $88.75. The December contract was down 29¢ to close at $88.08.