July 16 – Wheat Prices Slump in Chicago

Wheat prices retreated in Chicago as good weather was seen across the country. Meanwhile, soybean prices found double-digit gains as technical buying offered some support. Let’s take a look at grain prices at the Chicago Board of Trade:

Wheat Prices Dip

Wheat prices fell in Chicago, Kansas City, and Minneapolis today.

Chicago SRW contracts shed 8.5 cents to end the day at $4.885 per bushel. In KC, HRW contracts for the same month slumped 7 cents to end just under $4.85.

Finally, MGEX contracts for spring wheat closed a tick above $5.28 after finishing the day off 3.5 cents.

Today, the USDA reported weekly crop progress conditions.

On the winter wheat side, markets had expected that 74% of the crop would be harvested. Sure enough, the USDA reported that 74% of the harvest is complete.

Winter Wheat Harvest Progress

A few numbers of note:

 – The harvests in Oklahoma and Missouri are complete.

 – Kansas will wrap up this week.

 – We can expect the same in Illinois and Texas.

In the spring wheat market, analysts expected that good-to-excellent (G/E) spring wheat would come in at 80%. Analysts again hit the nail on the head.

Spring Wheat Crop Condition

It’s important to note that at this point last year, just 34% of the crop was rated G/E.  

Soybean Prices Find Double-Digit Gains

Soybean prices pushed higher as buyers came in on weakness. The gains came after the crop hit new contract lows last week thanks to ongoing concerns about trade between the United States and China.

August and September futures both added 10.75 cents on the day. The August contract closed at $8.2950, while September contracts were a tick above $8.35.

Soybean export checks came in at 23.4 million bushels for the week. That was off 1.1 million from bushels inspected during the previous week.

Today, the USDA reported its weekly update on crop progress and quality. This week, analysts expected that soybeans rated G/E would fall from 71% to 70%.

Soybean Crop Condition

They were off by one point. The USDA said that soybean crop rated G/E came in at 69%.

Crop conditions have looked very good across the country… except for in Missouri. Just 40% of the state’s soybean crop is rated G/E. That number is down 25 points from the same time last year.

Today, the National Oilseed Processors Association (NOPA), which encompasses 95% of the U.S. soybean crush, released their monthly report on soybean, soymeal, and soyoil production and stocks. In June, NOPA members crushed 159.228 million bushels. That figure was just below the average trade estimates of 159.637 million bushels.

Despite the small miss, the figure was a 15.3% jump from last year.

This was also a record crush for the month of June.

Corn Prices Remain Flat

It was a dull day in the corn pit. September and December contracts added 0.5 cents to close the day at $3.4174 and $3.5525, respectively.

Today, the USDA said that corn inspections for last week came in at 47.9 million bushels. That figure is 9.9 million bushels fewer than the previous week’s total. However, the figure was within the range of trade estimates.

Today, the USDA released its Crop Progress report. Analysts had expected that the USDA would say that 74% of the crop was rated G/E. Let’s take a look at the numbers.

Corn Crop Condition

The USDA said that 72% of the crop was rated G/E. Missouri once against continues to see prolonged dryness across the region. Just 33% of the crop was rated G/E.

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About the Author
Garrett Baldwin

Garrett Baldwin is a content strategist and editor at FarmLead. He covers the global grain markets and public policy issues related to the agricultural industry. He is a graduate of the Medill School of Journalism at Northwestern University. He also holds a Master’s Degree in Economic Policy from The Johns Hopkins University, an MS in Agricultural Economics from Purdue University, and an MBA in Finance from Indiana University.

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