Progressing harvest pulls wheat futures to four-month lows

Recap for June 7

Under pressure from lackluster export demand for US supplies, wheat futures tumbled Wednesday, the most active soft red winter wheat contract snapping a five-day win streak that had pushed prices to three-week highs. Corn futures also declined with new crop contracts down the most on forecasts for beneficial rains in key Midwestern growing areas. Soybean futures were mixed with nearby contracts firming as traders positioned ahead of Friday’s crop reports and later contracts faltering on forecasts for rain. July corn futures were down 3¾¢ to close at $6.04¼ a bu. Chicago July wheat fell 11¢ to close at $6.16¾ a bu. Kansas City July wheat plummeted 32¼¢ to close at $7.88 a bu. Minneapolis July wheat dropped 22½¢ to close at $7.94 a bu. July soybeans climbed 7½¢ to close at $13.60¾ a bu, but later months were mixed and mostly lower. July soybean meal rose $8.50 per ton to close at $405.20; the October contract and those beyond were lower. July soybean oil retreated 0.45¢ to close at 50.47¢ a lb.

Stocks opened the day on an upside trajectory, the S&P 500 briefly touching bull-market territory, but a surprise rate hike from the Bank of Canada slowed their roll and ultimately sent two of the three major indexes lower by closing bells Wednesday. The Dow Jones Industrial Average added 91.74 points, or 0.27%, to close at 33,665.02. The Standard & Poor’s 500 lost 16.33 points, or 0.38%, to close at 4,267.52. The Nasdaq Composite declined 171.52 points, or 1.29%, to close at 13,104.89.

US crude oil futures flipped back to the high side Wednesday, their fourth gain in five trading days. The July West Texas Intermediate (WTI) light, sweet crude future added 79¢ to close at $72.53 per barrel.

The US dollar index turned lower Wednesday.

US gold futures again followed the dollar lower against the traditional dynamic between the two. June gold dropped $22.80 to close at $1,942.70.

Recap for June 6

Wheat futures were mixed Tuesday, with most gains falling under the soft winter wheat category after a technical bounce. Corn futures were mixed as traders positioned themselves ahead of a key report on Friday from the US Department of Agriculture. Soybeans traded higher and lower in the session before closing strong at nearly-three-week highs. July corn futures were up 10½¢ to close at $6.08 a bu, but later months were mixed. Chicago July wheat added 3¾¢ to close at $6.27¾ a bu. Kansas City July wheat dipped 2¢ to close at $8.20¼ a bu. Minneapolis July wheat dropped 3¾¢ to close at $8.16½ a bu. July soybeans climbed 3¼¢ to close at $13.53¼ a bu. July soybean meal fell $4.50 per ton to close at $396.70. July soybean oil ascended 1.66¢ to close at 50.92¢ a lb.

Large technology company shares powered small gains Tuesday that saw the Nasdaq and S&P 500 indexes post fresh closing highs for the year. The Dow Jones Industrial Average added 10.42 points, or 0.03%, to close at 33,573.28. The Standard & Poor’s 500 climbed 10.06 points, or 0.24%, to close at 4,283.85, the highest since August but about 10 points shy of exiting its longest bear market since the 1940s. The Nasdaq Composite advanced 46.99 points, or 0.36%, to close at 13,276.42.

US crude oil futures lower Tuesday after a three-session rally. The July West Texas Intermediate (WTI) light, sweet crude future declined 41¢ to close at $71.74 per barrel.

The US dollar index strengthened Tuesday after a day earlier posting a bifurcated directional trend.

US gold futures advanced even as the dollar did the same. June gold added $7.50 to close at $1,965.50.

Recap for June 5

Signals of further erosion of export demand for US supplies weakened sent corn and soybean futures lower Monday to open the trading week. Wheat futures, meanwhile, firmed with hard red winter and hard red spring contracts posting the widest gains as traders considered tight global stocks of high protein supplies and concerns that key growing areas of Europe and the Black Sea region could see harvests cut by dry soils. July corn futures were down 11½¢ to $5.97½ a bu. Chicago July wheat added 5¢ to close at $6.24 a bu. Kansas City July wheat jumped 10¢ to close at $8.22¼ a bu. Minneapolis July wheat advanced 12½¢ to close at $8.20¼ a bu. July soybeans dropped 2½¢ to close at $13.50 a bu. July soybean meal added $3.40 per ton to close at $401.20. July soybean oil retreated 0.24¢ to close at 49.26¢ a lb.

US equity markets fell back Monday after the Institute for Supply Management said the services sector of the economy expanded more slowly in May than economists expected. Afterward, the two-year Treasury yield fell to 4.480% from 4.501% Friday, while the yield on the 10-year note closed at 3.691%, unchanged from Friday. The S&P 500 fell just short of a new bull market. The broad-based index had been in a bear market for 245 trading days, the longest stretch since 1948. The Dow Jones Industrial Average fell 199.90 points, or 0.59%, to close at 33,562.86. The Standard & Poor’s 500 fell 8.58 points, or 0.2%, to close at 4,273.79. The Nasdaq Composite dropped 11.34 points, or 0.09%, to close at 13,229.43.

US crude oil futures were higher again Monday for a third consecutive session. The July West Texas Intermediate (WTI) light, sweet crude future advanced 41¢ to close at $72.15 per barrel. Support came after Saudi Arabia and the larger OPEC-plus group met over the weekend and agreed to more production cuts to compensate for weakening demand.

The US dollar index posted a mixed close to open the trading week. The June dollar weakened but the September dollar strengthened slightly.

US gold futures advanced, June gold adding $5.60 to close at $1,958.

Recap for June 2

Wheat futures firmed on weather concerns in China after a key wheat-growing province received excessive and possibly crop damaging rains, plus lingering tensions over Ukraine supplies moving through the Black Sea corridor. Wheat also followed a firm trend established by corn and soybean futures lifted by bargain buying after some contracts struck multi-month lows in the week, dryness in the Midwest crop belt and spillover strength from equities and crude oil. July corn futures were up 16½¢ to close at $6.09 a bu. Chicago July wheat added 8¼¢ to close at $6.19 a bu. Kansas City July wheat added 9¾¢ to close at $8.12¼ a bu. Minneapolis July wheat jumped 18¾¢ to close at $8.07¾ a bu. July soybeans added 23¢ to close at $13.52½ a bu. July soybean meal dipped $3.60 per ton to close at $397.80; furthest deferred months were mixed. July soybean oil gained 1.64¢ to close at 49.50¢ a lb.

US equity markets soared Friday after a Labor Department report indicated US employers added a seasonally adjusted 339,000 jobs in May and the prior two months’ payrolls were revised up by nearly 100,000. The Dow Jones Industrial Average added 701.19 points, or 2.12%, to close at 33,762.76. The Standard & Poor’s 500 advanced 61.35 points, or 1.45%, to close at 4,282.37. The Nasdaq Composite added 139.78 points, or 1.07%, to close at 13,240.77.

US crude oil futures were higher again Friday. The July West Texas Intermediate (WTI) light, sweet crude future rose $1.64 to close at $71.74 per barrel. US crude still posted a weekly decline of 1.3%. Support came from the market cheering the Senate’s passage of a higher debt ceiling, essentially ending the uncertainty for market participants who feared a default would have deep macroeconomic consequences.

The US dollar index flipped back to the strong side to close the week.

US gold futures turned lower, the June gold futures shedding $25.60 to close at $1,952.40.

Recap for June 1

A drying trend in the Midwest farm belt helped push soybean futures higher Thursday, as did a weakening US dollar and speculative buying at the dawn of June. Corn futures were higher, save the prompt month, the commodity’s inter-market spread widening on nearby demand woes and the same weather concerns supporting soybeans. Wheat futures were higher amid ultra-rainy forecasts for China’s top wheat-growing province of Henan where efforts to harvest grain already damaged by wet weather in late May could be set back. July corn futures were down 1½¢ to $5.92½ a bu, spreading from all deferred contracts, which were 5¾¢ to 8¾¢ higher. Chicago July wheat added 16½¢ to close at $6.10¾ a bu. Kansas City July wheat added 12¢ to close at $8.02½ a bu. Minneapolis July wheat jumped 9¢ to close at $7.89 a bu. July soybeans soared 29¾¢ to close at $13.29½ a bu. July soybean meal rose $8 per ton to close at $401.40. July soybean oil gained 1.66¢ to close at 47.86¢ a lb.

US equity markets received a trading boost Thursday after a bill to avoid a default passed through the House of Representatives enroute to the Senate. The Dow Jones Industrial Average added 153.30 points, or 0.47%, to close at 33,061.57. The Standard & Poor’s 500 advanced 41.19 points, or 0.99%, to close at 4,221.02. The Nasdaq Composite jumped 165.70 points, or 1.28%, to close at 13,100.98.

US crude oil futures were higher Thursday. The July West Texas Intermediate (WTI) light, sweet crude future rose $2.01 to close at $70.10 per barrel. It was the largest one-day gain since May 5 as investors veered toward ideas the OPEC-plus group will announce more production cuts this weekend, offsetting a buildup in US gas and crude inventories.