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Cereal prices end the day lower with a massive sale of raw materials | Tuesday, May 31, 2022

By on May 31, 2022 0

July corn was down 23¾ cents and December corn was down 18½ cents. July soybean futures were 49 cents lower and November beans 34½ cents lower. Chicago wheat in July was down 70 cents, Kansas City wheat in July was down 69 ¾ cents and Minneapolis wheat in July was down 57 ¼ cents.

Livestock prices ended the day lower. Live cattle futures ended the day down $1.65 on the June contract. August feeder cattle closed down $1.20 and June lean hog futures closed the day down $2.42.

Crude oil is down 7 cents and Dow futures were down 222 points.

Month-end fund sales took center stage. With most of the crop planted in the United States and the weather not looking threatening, it makes sense that the funds would take a little risk and pass away.

Russia continues to make headlines by suggesting that it is willing to allow the export of grain out of Ukraine via the Black Sea. This is highly unlikely to happen, but the market has been sensitive to this headline with wheat falling near the boundary today.

Earlier in the day, news that the EU would impose more sanctions on Russian oil helped crude oil trade near $120 a barrel. However, at the end of the day, rumor has it that OPEC is considering suspending Russian oil production. If this continues, we could see the countries involved in OPEC increase their crude oil production and cause crude oil futures to sell off.

Today’s Crop Progress report showed 86% of maize planted, up from 94% a year ago and 87% planted on average over five years. For soybeans, we are at 66% planted against 85% planted a year ago and 67% planted on a five-year average.

With much of the US crop planted and valued quite high, we are at a time of year when futures will struggle to hold at these current levels.

LUNCH COMMENTS: 11:45 a.m.

By midday, July corn futures are down 22 to 23 cents and December corn futures are down 18 to 19 cents. July soybean futures are 40 to 41 cents lower and November futures are 25 to 26 cents lower. July Chicago wheat is 63 cents lower. Kansas City July wheat is 58 cents lower and Minneapolis July wheat is 47 cents lower.

Livestock prices are mixed with live cattle down 20 cents. Feeder cattle are $1.20 higher and lean hogs $2.80 per hundred.

Crude oil is up $2.17 and Dow Jones futures are down 287 points.

Traders seem to be sidelining today as we end May. Corn and soy spreads are very mild. Once the sell off started, the stops were hit.

Wheat is the leader on the downside. Further Russian talks allowing Ukrainian grain to be exported out of the Black Sea region are putting wheat under severe pressure. This, in turn, trickles down to the corn market.

Weekly export inspections were released at 10:00 a.m. CT. Corn and soybean export inspections were down from last week’s numbers, but still at respectable levels. Wheat export inspections were up slightly from the previous week.

The Crop Progress report will be released at 3:00 p.m. CT today. We will get our first state ratings for corn and soybeans. Expect the harvest to be pretty good considering the late spring we’ve seen in the US

OPENING COMMENTS: 8:45 a.m.

July corn futures are 3 to 4 cents lower. Soybean futures prices in July are 10 to 11 cents higher. July Chicago wheat is 26 cents lower. Kansas City July wheat futures are 26 cents lower and Minneapolis July wheat futures are 15 cents lower.

Livestock prices are mixed this morning. Live cattle cost 75 cents more. Feeder cattle cost 62 cents more. Lean hog futures are $1.82 lower.

Spot hog prices and carcass values ​​last week were a little lower on Friday, and we are seeing some selling this morning. We still need to see the product cleaned up in the lean pork complex. Also, China is slowly reopening, and as it does, we should see US meat exports recover.

Crude Oil is up $4.09 this morning and the stock market is down 335 points to start trading today.

Heavy rain for the High Plains including the Dakotas, parts of Nebraska and parts of Minnesota. These heavy rains over the three-day weekend are in areas that are already very wet. The question traders will be focusing on this week is how many Prevent Plant acres will we have in the Dakotas and northern Minnesota?

Wheat futures prices are under pressure as much of the winter wheat acreage is expected to receive rain this week and help add a few more bushels to their crop this year. There is still some optimism about the recovery of Ukrainian exports.

Corn is caught between pressured wheat futures and a very strong crude oil market. Look for a choppy trading day.

The latest Crop Progress report, to be released at 3:00 p.m. CT, is expected to show corn plantings in the 85% to 90% zone. Soybeans should be planted at 70% to 75%.

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About the Author: Cory Bratland is the youngest of five children who grew up on the family farm near Willow Lake, South Dakota. Bratland attended Willow Lake High School and earned an AAS degree in agricultural business management at Lake Area Technical Institute in Watertown, South Dakota. He began his career as a cash grain marketer and grain trader with Cargill, Inc. While working for Cargill, Inc., Bratland held various merchandising jobs in South Dakota and Minnesota. In 2003, he obtained a Series 3 and 30 commodity broker license. In 2008, Bratland left Cargill to become an independent commodity broker and launched Prairie Ag Marketing Services. In 2009, it partnered with Al Kluis as an affiliate office. In 2010 he became Chief Grain Strategist at Kluis Commodity Advisors. In addition to working with Al on marketing strategies on a daily basis, Bratland also serves private clients through Kluis Publishing and Prairie Ag Marketing. He lives near Willow Lake, South Dakota, with his wife Erica and children, Hunter, Elliot and Isabella. He is still actively involved in the family farm which grows corn, soybeans, alfalfa and also operates a cow/calf operation.

Editor’s note: The risk of loss when trading futures and/or options is substantial, and each investor and/or trader should consider whether it is a suitable investment. Past performance – whether actual or indicated by simulated historical testing of strategies – is not indicative of future results. Trading advice reflects good faith judgment at the time and is subject to change without notice. There is no guarantee that the advice given will result in profitable transactions.