Weekly Ag Markets Update - Monday, July 6

Wheat: Winter Wheat markets were lower as the Winter Wheat harvest expanded north and as the Spring Wheat was developing under good growing conditions. Yield reports from the region have been variable, but generally a little better than expected, so USDA might raise its production estimates nest month. The Winter Wheat markets hold to bearish trends on the weekly charts. Spring Wheat markets show downtrends as good conditions are also reported in much of Canada. It remains dry in the western sections of the Great Plains but this will aid harvest progress now. Better rains are reported in Europe and Russia. Australia remains in good condition.  Prices usually move lower and remain down through the harvest.

Weekly Chicago Soft Red Winter Wheat Futures:

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Weekly Chicago Hard Red Winter Wheat Futures:

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Weekly Minneapolis Hard Red Spring Wheat Futures:

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Corn: Corn was a little higher in reaction to the surprise cut in the planted area shown by USDA. The quarterly stocks report was bearish but the surprise of the report was a cut in the planted area by US farmers from 97 million acres down to 92 million. Futures markets have had hot and dry weather in much of the Midwest this week to support prices, but the weather market is coming as there are some forecasts for hot and dry weather for the next week or two. The ability of futures to hold rallies will depend on how much heat and for how long it stays dry in the Midwest. There have also been problems with demand. Meats processors are back and are aiming to restore 80% to 85% of capacity kill rates in their plants. The backlog of Cattle and Hogs will slowly disappear under this scenario and meats wholesale and retail prices are falling. Ethanol demand is also improving as lockdown orders are lifter in most states and in Europe. Demand for gasoline and ethanol has gotten a little stronger and should continue to improve over time.

Weekly Corn Futures:

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 Weekly Oats Futures:

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Soybeans and Soybean Meal: Soybeans were higher on more Chinese demand and less than expected planted area as shown by USDA on Tuesday. The quarterly stocks report was in line with trade expectations. China has become a much more active buyer of Soybeans here in the US and has promised to ramp up purchases in order to comply with commitments it made under the Phase One trade deal. China has remained a very active buyer in South America even as it has increased Soybeans buying here in the US, so the overall amount taken from the US might not match the hopes of the trade. Brazil prices have been creeping higher for the rest of the world as it starts to run out of Soybeans to export, so China and the rest of the world will look to the US and Argentina for additional supplies. The US weather is considered good for growing Soybeans at this time but forecasts call for hot and dry weather in the next couple of weeks. Ideas are that USDA will show slight deterioration in crop conditions this week.

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Disclaimer: Past results are not necessarily indicative of future results. Investing in futures can involve substantial risk of loss & is not suitable for everyone. Trading foreign exchange also ...

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