Grains End Day in the Red

Grains Market Update: Corn, Soybeans, and Wheat Prices Decline

As trading closed for the day, corn, soybeans, and wheat futures all saw a decrease in prices. July corn ended the day down 3¼¢ at $4.89½ per bushel, while July soybeans closed down 3¾¢ at $10.46½ per bushel. July wheat contracts were also lower, with CBOT wheat closing down 5¾¢ at $5.56 per bushel, KC wheat down 1¾¢ at $5.68½, and Minneapolis wheat down 3½¢ at $6.15½.

Karl Setzer, a partner at Consus Ag Consulting, noted that the futures market was choppy throughout the day. Corn initially led the market with support from consecutive days of flash export sales. However, soybeans struggled due to a shift in demand to South America and weakness in the energy and global vegetable oil markets. The escalation of the trade war with China also had a negative impact on all markets, with news of potential cancellations of aircraft purchases affecting market sentiment.

Wheat futures were pressured further by the declaration of force majeure at loading facilities along the Ohio River due to flooding, adding to the downward pressure on prices.

Livestock and Energy Markets

In the livestock sector, June live cattle ended the day up 73¢ at $199.80 per hundredweight, August feeder cattle closed up $2.10 at $288.25 per cwt, and June lean hogs were up 5¢ at $95.18 per cwt. Ahead of 3 p.m. CT, June crude oil was down 12¢ at $60.93 per barrel.

Market Futures and Outlook

Looking ahead, June S&P 500 futures and Dow futures were down 10 points and 144 points, respectively. The morning market update revealed a continued decline in prices, with July corn down 1¼¢ at $4.91½ per bushel, July soybeans down 9¼¢ at $10.41 per bushel, and July wheat contracts also in the red. However, there was some positive news as USDA announced Portugal’s purchase of 110,000 metric tons of corn for the 2024/2025 marketing year.

June live cattle, August feeder cattle, and June lean hogs showed some strength in early trading, with diverse movements in the energy sector. June crude oil was up 27¢ at $61.32 per barrel, and the U.S. Dollar Index June contract rose to 99.78.

Overall, the markets continue to be influenced by a variety of factors, from trade tensions to weather events. Traders and investors will be closely monitoring developments to gauge the impact on agriculture and related markets.

Published: 3:26 p.m. CT