Ongoing concerns about a trade war meshed with positive crop development news to create a selloff in Chicago. A lack of progress between the U.S. and China on trade also helped push grain prices lower across the board. Also weighing on the markets is the improving weather set to push across the country.
Wheat Prices Pummeled
A profit-taking selloff turned into a frenzy in Chicago as wheat prices were deep in the red.
July SRW wheat prices fell 14.5 cents to end the day at $5.22 per bushel. The September contract shed 14.5 cents to close at $5.39 per bushel.
Down in Kansas City, HRW contracts shed 15.75 cents to end the day just under $5.41. The September contract dropped 15.25 cents and ended the day just above $5.59.
Spring wheat contracts dipped thanks to profit taking and news that planting is nearly complete across the U.S. The MGEX July contract shed 16.5 cents to end the day at $6.115. The September contract dropped 16.5 cents and closed the day just above $6.19.
Corn Prices Drop
July corn prices fell under $4.00 thanks to a 6.5-cent slide on Wednesday. Cash prices in Chicago fell 6 cents to $3.95, while that July contract slipped to $3.935. September 2018 corn contracts fell 6.5 cents to end the day at $4.025.
Prices dropped thanks to pressure from wheat contracts and improving corn conditions across the United States. Yesterday, the USDA reported positive developments across the country with 79% of the crop rated G/E. Just 3% of the crop is rated poor/very poor.
Soybean Prices Slump on China Worries
The combination of falling wheat prices, breakneck planting progress and concerns over the upcoming trade negotiations between the United States and China hit the soybean complex.
The July 2018 contract slipped 7.5 cents to $10.23 per bushel. The September contract shed 7.25 cents to end the day just under $10.28.
Yesterday, the USDA said that 77% of the soy crop has been put into the ground.
With rains expected across the country this week, beans should continue to get the drink they need to provide solid growth.
Meanwhile, the entire saga over U.S. trade with China took an even weirder turn on Tuesday. This week, U.S. Commerce Secretary Wilbur Ross is heading to China to begin talks in an effort to strike a deal. A day after the Trump administration announced it would slap China with 25% tariffs on $50 billion in goods, the President took a shot at Ross. Trump said that the 80-year-old tycoon is “past his prime.”
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