Weather, stronger dollar, fund selling send ag futures reeling | 2021-06-18 – Food Business News

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Soybean futures chart

Recap for June 17

  • Corn futures fell by their daily 40¢ limit in the front five contracts as improving US crop weather, a sharply higher dollar and broad declines in commodities spurred fund-driven long liquidation. Soybean futures were sharply lower on spillover weakness from broad declines in commodities, including crude oil and gold, as well as a nearly 9% plunge in soybean oil futures. Wheat futures also declined Thursday, led by winter wheat futures under harvest pressure, spillover from corn and soybeans and the stronger dollar. Dry northern Plains weather kept spring wheat futures losses in check. July corn dropped its daily limit of 40¢ to close at $6.33 a bu. Chicago July wheat fell 23¾¢ to close at $6.39 a bu. Kansas City July fell 25½¢ to close at $5.85¼ a bu. Minneapolis July wheat shed 9¢ to close at $7.51¼ a bu. July soybeans plunged $1.18¾ to close at $13.29¾ a bu. July soybean meal declined $17.70, closing at $379.20 a ton. July soybean oil dropped its expanded daily limit of 5.5¢ to close at 56.57¢ a lb.
  • US equity markets were mixed Thursday. The S&P 500 was pressured by a third straight day of losses in building and materials company shares, while the Nasdaq was pushed higher by advances in technology shares. The Dow Jones Industrial Average fell 210.22 points, or 0.62%, closing at 33,823.45 in a fourth-straight session of declines. The Standard & Poor’s 500 Index eased 1.84 points, or 0.04%, to close at 4,221.86. The Nasdaq Composite added 121.67 points, or 0.87%, to close at 14,161.35.
  • US crude oil futures declined Thursday. The July contract was down $1.11 to $71.04 per barrel.
  • The US dollar index was sharply higher Thursday, gaining for the third time in four sessions.
  • US gold futures were sharply lower, and the dollar strengthened. The June contract was down $85.70 at $1,773.80 per oz.

Recap for June 16

  • Soybean futures closed lower Wednesday under pressure from soybean oil futures’ limit-down day on weaker global vegetable oil prices and demand uncertainty. Soybean meal futures advanced. Corn futures were mixed, higher nearby and lower beyond in reflection of firmer cash markets and tight old-crop supplies. Wheat futures also were mixed, with winter wheat mostly lower under seasonal pressure as Texas and Oklahoma harvests continued and combines began to roll in Kansas. Dry northern Plains conditions supported most Minneapolis contracts. July corn added 5½¢ to close at $6.73 a bu, though all later months declined. Chicago July wheat added 1¼¢ to close at $6.62¾ a bu, later months were mixed in a narrow range, mostly lower. Kansas City July fell 2¢ to close at $6.10¾ a bu. Minneapolis July wheat jumped 12½¢ to close at $7.60¼ a bu; later months were mixed but mostly higher. July soybeans declined 17¼¢ to close at $14.48½ a bu. July soybean meal advanced $6.80, closing at $379.20 a ton. July soybean oil dropped its daily limit, 3.5¢, to close at 62.07¢ a lb.
  • US equity markets were mostly steady Wednesday but declined after the Federal Reserve said its median projection was for lifting its benchmark rate to 0.6% from near zero by the end of 2023. In March, the central bank had expected to hold it steady through that year. The Dow Jones Industrial Average fell 265.66 points, or 0.77%, closing at 34,033.67. The Standard & Poor’s 500 Index fell 22.89 points, or 0.54%, to close at 4,223.70. The Nasdaq Composite fell 33.17 points, or 0.24%, to close at 14,039.68.
  • US crude oil futures advanced Wednesday. The July contract was up 3¢ to $72.15 per barrel.
  • The US dollar index was higher Wednesday for the second time in three sessions.
  • US gold futures advanced despite the stronger dollar Wednesday. The June contract was up $5 at $1,859 per oz.

Recap for June 15

  • Forecasts for much-needed rains and cooler temperatures pressured corn futures Tuesday. Improving crop weather also weighed on soybeans. Winter wheat futures were lower under harvest pressure as combines began to roll in southern Kansas. Spillover weakness from corn and soybeans also played a part. Spring wheat futures were mixed, advancing nearby. July corn added 8¼¢ to close at $6.67½ a bu, though all later months declined. Chicago July wheat fell 13¢ to close at $6.61½ a bu. Kansas City July fell 15¼¢ to close at $6.12¾ a bu. Minneapolis July wheat edged up 1¼¢ to close at $7.47¾ a bu; later months were mixed. July soybeans declined 6½¢ to close at $14.65½ a bu. July soybean meal declined $1.50, closing at $372.40 a ton. July soybean oil fell 0.39¢ to close at 65.57¢ a lb.
  • US equity markets declined Tuesday after a Commerce Department report indicated consumers cut spending by 1.3% in May, trimming expenditures on autos, furniture, electronics, building materials and other items. The Dow Jones Industrial Average fell 94.42 points, or 0.27%, closing at 34,299.33. The Standard & Poor’s 500 Index fell 8.56 points, or 0.20%, to close at 4,246.59. The Nasdaq Composite fell 101.29 points, or 0.71%, to close at 14,072.86.
  • US crude oil futures advanced Tuesday. The July contract was up $1.24 to $72.12 per barrel.
  • The US dollar index turned higher Tuesday.
  • US gold futures retreated as the dollar ascended. The June contract was down $9.50 at $1,854.50 per oz.

Recap for June 14

  • Corn futures tumbled nearly 4% Monday on improved crop weather forecasts. Soybean futures were down sharply for the same reason with additional spillover pressure from soybean oil and Malaysian palm oil futures. Wheat futures dipped on spillover weakness from corn and soybean futures and on pressure from advancing winter wheat harvest. July corn fell 25¼¢ to close at $6.59¼ a bu. Chicago July wheat fell 6¼¢ to close at $6.74½ a bu. Kansas City July fell 10¢ to close at $6.28 a bu. Minneapolis July wheat deleted 18¼¢ to close at $7.46½ a bu. July soybeans plummeted 36¼¢ to close at $14.72¼ a bu. July soybean meal declined $9.40, closing at $373.90 a ton. July soybean oil fell 1.02¢ to close at 65.96¢ a lb.
  • Despite losses from sectors reopening after the pandemic, including cruise ships and brick-and-mortar stores, the Nasdaq and S&P 500 achieved fresh closing records Monday. However, the Dow industrials index declined, although ending well above the day’s lows. Ultimately, moves across the equity markets were muted ahead of a two-day Federal Reserve policy meeting later this week. The Dow Jones Industrial Average fell 85.85 points, or 0.25%, closing at 34,393.75. The Standard & Poor’s 500 Index added 7.71 points, or 0.18%, to close at 4,255.15. The Nasdaq Composite added 104.72 points, or 0.74%, to close at 14,174.14.
  • US crude oil futures were mixed Monday. The expiring July contract was down 3¢ at $70.88 a barrel, but forward months were higher, including the August contract, up 3¢ at $70.63 per barrel.
  • The US dollar index weakened to start the trading week.
  • US gold futures retreated despite the lower dollar. The June contract was down $13.40 at $1,864 per oz.

Recap for June 11

  • Soyoil futures were down their daily trading limit during Friday’s session, pressured by concerns about renewable fuel feedstocks after the Biden administration indicated it was considering changes to biofuel blending mandates. Corn and soybean futures fell for the same reason. Cash spring wheat weakness on recent rains in North Dakota spilled over to wheat futures, which also were lower Friday. July corn fell 14½¢ to close at $6.84½ a bu. Chicago July wheat fell 3¢ to close at $6.80¾ a bu. Kansas City July fell 2¼¢ to close at $6.38 a bu. Minneapolis July wheat deleted 10¾¢ to close at $7.64¾ a bu. July soybeans plummeted 35½¢ to close at $15.08½ a bu. July soybean meal gained $1.70, closing at $383.30 a ton. July soybean oil fell 3.48¢ to close at 66.98¢ a lb.
  • US equity markets closed higher Friday after trading sideways most of the session. The Dow Jones Industrial Average added 13.36 points, or 0.04%, closing at 34,479.60, posting a narrow weekly loss. The Standard & Poor’s 500 Index added 8.26 points, or 0.19%, to close at 4,247.44 and notch a third straight weekly gain. The Nasdaq Composite added 49.09 points, or 0.4%, to close at 14,069.42 for a modest weekly gain.
  • US crude oil futures advanced Friday, the July contract up 62¢ to $70.91 a barrel.
  • The US dollar index strengthened at the close of the week.
  • US gold futures retreated as the dollar strengthened. The June contract was down $16.80 at $1,877.40 per oz.

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