Weekly Ag Markets Update - Monday, June 22

Wheat: Winter Wheat markets were lower as the harvest expanded north into southern Kansas. Yield reports from the region have been variable, but generally a little better than expected, so USDA might raise its production estimates nest month. Spring Wheat held better despite good growing conditions and high crop ratings. 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. Russia could turn hot and dry starting this week but soil moisture is good for now. 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 on the weekly charts as the current seasonal rally appeared to stall. Futures markets have had hot and dry weather in much of the Midwest this week to support prices, but there was some rain in most areas over the weekend. 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. The US weather and growing conditions are becoming more important as Corn enters its greatest demand time for moisture. Rains were seen in the Midwest after a hot and dry week. Generally, good growing conditions should continue. Continued hot and dry weather would imply yield loss potential and be a reason to see prices move sharply higher as funds and speculators, in general, are short the market. Oats gave up their rally a couple of weeks ago and chart trends are down. Demand should start to back off now that many are leaving the house and are working again.

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. 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 with rains seen over the weekend. Ideas are that USD will show slight deterioration in crop conditions this week but better conditions next 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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