Wheat prices found solid gains Tuesday as traders weighed ongoing dryness around the globe and yesterday’s crop progress report. Meanwhile, front-month soybean prices popped by double digits as buyers continued to gobble up supply. Corn even found some gains and pressed the front-month contract back toward the $3.50 range.
Today, Federal Reserve Chair Jerome Powell testified before the U.S. Senate and offered a positive outlook for the U.S. economy. Powell said that job growth will remain robust and inflation will remain low. That gave the Dow Jones a boost and offered some support to oil prices.
Here’s what else you need to know from the Chicago Board of Trade.
September Wheat Prices Back Within Range of $5.00
In Chicago, September SRW contracts added 9.25 cents to close the day a tick under $4.98. The December contract added 8.25 cents to close the day just above $5.12 per bushel.
As we noted yesterday, the winter wheat harvest is almost done in Kansas, while Texas is sitting at 95%. We expect that both states will be finished this week.
Kansas City HRW wheat for September added 6.25 cents to close the day just under $4.91. The December contract added 6 cents to close the day at $5.15 per bushel.
Meanwhile, spring wheat prices in Minneapolis pushed higher on Tuesday. The September contract added 6.25 cents to close the day just under $4.91. The December contract added 6 cents to close at $5.15.
The USDA reported yesterday that 80% of the spring wheat crop is rated G/E. Heading was well ahead of the average pace for the top six producing states for spring wheat.
Despite the positive sentiment, weather forecasts indicate that we will see some drier weather in the next two weeks.
Soybean Prices Pop in Chicago
August soybean prices added 10 cents to close the day at $8.395 per bushel. The September contract gained 9.75 cents to close at $8.45.
Buyers swooped in after the USDA announced a small decline in crop quality from the NASS report and a surprisingly strong export report on Monday.
As Brennan noted this morning, soybean prices at Brazilian ports were sitting more than 20% higher than those out of American ports earlier this week.
AgResource is reporting that some Brazilian boats of soybeans are being offered at $392 USD/metric tonne, $68 MT less than what US soybeans out of the Gulf of Mexico ports are being offered.
For more on what’s happening in the complex, be sure to check out our Soybean Prices Outlook for the Second Half of 2018.
Corn Prices Find Gains on Tuesday
Corn prices for September added 4.5 cents in Chicago as markets digested a small decline in crop quality after the bell Monday. December prices also slid 4.5 cents to end the day just under $3.60.
Ongoing dryness across Europe has provided some support to the corn markets, as we noted in GrainCents over the weekend. That combined with news of falling corn quality across the U.S. While the crop is still rated above the 5-year average, continued dryness could soon provide much-needed gains across the board in Chicago.
Tomorrow morning, we’ll be taking a more in-depth look at the weather and what it means for farmers looking for a return to sanity in the markets.
Be sure to visit FarmLead Insights tomorrow morning.
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