The grain markets are rallying back today after a lower start last night. All asset classes have been hit hard and the grain markets were pulled lower in the meltdown. Last night wheat turned higher first, and then the corn and soybean markets eventually moved higher.
July corn is up 12 cents. December corn is up 4 cents. July soybeans are trading 11 cents higher, and November soybeans are up 12 cents. Wheat futures are 7 to 20 cents higher.
Yesterday’s USDA Crop progress report showed corn ratings dropping by 3% to 64% good/excellent/ Soybean ratings were down 2% to just 63% good/excellent. The eastern Corn Belt and Delta regions took a big hit last week.
It feels like a turn around. Wednesday’s prices are oversold, and if the US stock market can stabilize and turn higher, look for the grain markets to post a short-term low.
On the Dalian Commodity Exchange in China, corn and soybean futures are lower. On the Matif exchange in Europe, wheat futures are 18 cents a bushel lower at $11.12.
In early trade, livestock futures are higher.
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About the Author: Al Kluis has been a commodity advisor and broker since 1976. Kluis is an introducing broker with Wedbush Futures and writes a column, Your Profit, which appears in every issue of Successful Farming magazine. Kluis has published two books on commodities trading and is commonly quoted in major publications including the Wall Street Journal. He is also a featured speaker at commodity conferences nationwide. Kluis is a frequent market analyst for the Linder Farm Radio News Network. A Minnesota farm boy, Kluis was awarded his degree in ag economics from the University of Minnesota in 1974, after which he was executive director of the Minnesota Soybean Association before entering the markets full-time. His family still farms in southwest Minnesota, and Kluis enjoys helping with fieldwork when the markets allow.
Editor’s Note: The risk of loss in trading futures and/or options is substantial, and each investor and/or trader must consider whether this is a suitable investment. Past performance – whether actual or indicated by simulated historical tests of strategies – is not indicative of future results. Trading advice reflects good-faith judgment at a specific time and is subject to change without notice. There is no guarantee the advice given will result in profitable trades.