September corn futures are 14¢-15¢ higher, August soybean futures are 11¢-12¢ higher, September Chicago wheat is 18¢-19¢ higher September Kansas City wheat futures are 17¢-18¢ higher and September Minneapolis wheat futures are 16¢ higher.
Livestock prices are mixed this morning. Live cattle are 17¢ higher, feeder cattle are $1.10 lower, and lean hog futures are $1.20 higher.
Crude oil is up $1.32 this morning and the stock market is up 84 points to start off today’s trade.
It is still all about the weather. Forecasts for the first part of August look hot and dry for a good portion of the US and that has traders putting some more risk premium back into the corn and soybean markets. As the weather forecast changes so will our grain prices.
The Federal Reserve increased interest rates by 75 basis points yesterday as expected. The stock market took that news in stride and closed very strong. The Federal Reserve’s comment that we are not in a recession seems to also be adding strength to commodities this morning too. Commodities typically do well during inflation.
Weekly export sales were out this morning. We saw a net cancellation of old crop soybean of 58,600 metric tons. However new crop soybean sales were good coming in at 748,800 metric tons. Corn sales were disappointing on both old crop and new crop and combined we only saw net export sales of 344,000 metric tons. Wheat export sales numbers were decent, coming in at 412,000 metric tons.
Lean hog cash prices this week have been very impressive. However weekly export sales on lean hogs was disappointing this morning. Live cattle on the other end had very strong weekly exports this week.
Keep a close eye on the weather models at noon.
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About the Author: Cory Bratland is the youngest of five children who grew up on his family’s farm near Willow Lake, South Dakota. Bratland attended Willow Lake High School and graduated with an AAS degree in ag 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 across South Dakota and Minnesota. In 2003, he was licensed as a Series 3 and 30 commodity broker. In 2008, Bratland left Cargill to be an independent commodity broker, starting Prairie Ag Marketing Services. In 2009, he partnered with Al Kluis as an affiliate office. In 2010, he became Kluis Commodity Advisors’ Chief Grain Strategist. In addition to working with Al daily on marketing strategies, 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 still actively participates in the family farm that raises corn, soybeans, alfalfa, and also runs a cow/calf operation.
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 that the advice given will result in profitable trades.