Progressing harvest pulls wheat futures to four-month lows

Recap for June 9

• Wheat futures were mixed to close the week with Chicago soft wheat contracts higher on concerns about damage to France’s crop and hard wheat futures lower after the US Department of Agriculture in its monthly report raised its estimate for all US wheat production and increased its estimate for US hard red winter wheat production above analysts’ estimates. US soybean futures pushed higher, the most-active contract exceeding a three-week high on spillover support from rising soybean oil futures, which had clawed back 22% since dropping May 31 to the lowest levels since February 2021. Corn futures declined after the USDA raised the domestic supply outlook for corn due to waning export sales. July corn futures fell 6¢ to close at $6.04¼ a bu. Chicago July wheat advanced 4¢ to close at $6.30¼ a bu. Kansas City July wheat fell 7¢ to close at $7.97¾ a bu. Minneapolis July wheat shed 4¢ to close at $8.11¾ a bu. July soybeans soared 23¼¢ to close at $13.86½ a bu. July soybean meal declined $6.80 per ton to close at $397.20; the October contract and those beyond were higher. July soybean oil jumped 2.09¢ to close at 54.59¢ a lb.

• Traders in wait-and-see mode ahead of next week’s inflation data and Federal Reserve interest-rate decision kept markets quiet and slightly higher to close the week. The Dow Jones Industrial Average added 43.17 points, or 0.13%, to close at 33,876.78. The Standard & Poor’s 500 added 4.93 points, or 0.11%, to close at 4,298.86, up 12% for the year after climbing out of its bear market a day earlier. The Nasdaq Composite added 20.62 points, or 0.16%, to close at 13,259.14.

• US crude oil futures were lower Friday. The July West Texas Intermediate (WTI) light, sweet crude future dropped $1.17 to close at $70.17 per barrel. Tepid demand and worries that Iranian crude barrels may eventually become unsanctioned if a nuclear deal is reached sent investors down a bearish path to close the week.

• The US dollar index popped higher to close the week on the heels of two down days. 

• US gold futures declined, the June contract shedding $1.40 to close at $1,962.20 an oz.

Recap for June 8

• As traders positioned ahead of Friday’s closely watched World Agricultural Supply and Demand Estimates and Crop Production reports from the US Department of Agriculture, US wheat futures bounced back from Wednesday’s sharp sell-off. Support was derived from technical buying and Russia-Ukraine war supply disruption concerns. Corn and soybean futures also closed in positive territory, with old-crop contracts supported by expectations that tight stocks will endure despite waning export demand for US supplies. A drier forecast for the US Midwest pulled new-crop contracts higher after they had traded in negative territory for much of the session. July corn futures climbed 6¢ to close at $6.10¼ a bu. Chicago July wheat advanced 9½¢ to close at $6.26¼ a bu. Kansas City July wheat added 16¾¢ to close at $8.04¾ a bu. Minneapolis July wheat jumped 21¾¢ to close at $8.15¾ a bu. July soybeans edged up 2½¢ to close at $13.63¼ a bu, with later months posting more substantial gains. July soybean meal fell $1.20 per ton to close at $404; the January contract and those beyond were higher. July soybean oil advanced 2.03¢ to close at 52.50¢ a lb.

• US stocks climbed Thursday, pulling the S&P 500 index out of its longest bear market since the 1940s. Advances from companies such as Amazon, Tesla and Nvidia led the day’s advances and allowed the S&P 500 to finish up 20% from its October low. The Dow Jones Industrial Average added 168.59 points, or 0.5%, to close at 33,833.61. The Standard & Poor’s 500 added 26.41 points, or 0.62%, to close at 4,293.93. The Nasdaq Composite added 133.63 points, or 1.02%, to close at 13,238.52.

• US crude oil futures were lower Thursday. The July West Texas Intermediate (WTI) light, sweet crude future dropped $1.24 to close at $71.29 per barrel. 

• The US dollar index continued lower Thursday. 

• US gold futures turned higher; the June contract adding $20.90 to close at $1,963.60 an oz.

Recap for June 7

• Under pressure from lackluster export demand for US supplies, wheat futures tumbled Wednesday, the most active soft red winter wheat contract snapping a five-day win streak that had pushed prices to three-week highs. Corn futures also declined with new crop contracts down the most on forecasts for beneficial rains in key Midwestern growing areas. Soybean futures were mixed with nearby contracts firming as traders positioned ahead of Friday’s crop reports and later contracts faltering on forecasts for rain. July corn futures were down 3¾¢ to close at $6.04¼ a bu. Chicago July wheat fell 11¢ to close at $6.16¾ a bu. Kansas City July wheat plummeted 32¼¢ to close at $7.88 a bu. Minneapolis July wheat dropped 22½¢ to close at $7.94 a bu. July soybeans climbed 7½¢ to close at $13.60¾ a bu, but later months were mixed and mostly lower. July soybean meal rose $8.50 per ton to close at $405.20; the October contract and those beyond were lower. July soybean oil retreated 0.45¢ to close at 50.47¢ a lb.

• Stocks opened the day on an upside trajectory, the S&P 500 briefly touching bull-market territory, but a surprise rate hike from the Bank of Canada slowed their roll and ultimately sent two of the three major indexes lower by closing bells Wednesday. The Dow Jones Industrial Average added 91.74 points, or 0.27%, to close at 33,665.02. The Standard & Poor’s 500 lost 16.33 points, or 0.38%, to close at 4,267.52. The Nasdaq Composite declined 171.52 points, or 1.29%, to close at 13,104.89.

• US crude oil futures flipped back to the high side Wednesday, their fourth gain in five trading days. The July West Texas Intermediate (WTI) light, sweet crude future added 79¢ to close at $72.53 per barrel. 

• The US dollar index turned lower Wednesday. 

• US gold futures again followed the dollar lower against the traditional dynamic between the two. June gold dropped $22.80 to close at $1,942.70.

Recap for June 6

• Wheat futures were mixed Tuesday, with most gains falling under the soft winter wheat category after a technical bounce. Corn futures were mixed as traders positioned themselves ahead of a key report on Friday from the US Department of Agriculture. Soybeans traded higher and lower in the session before closing strong at nearly-three-week highs. July corn futures were up 10½¢ to close at $6.08 a bu, but later months were mixed. Chicago July wheat added 3¾¢ to close at $6.27¾ a bu. Kansas City July wheat dipped 2¢ to close at $8.20¼ a bu. Minneapolis July wheat dropped 3¾¢ to close at $8.16½ a bu. July soybeans climbed 3¼¢ to close at $13.53¼ a bu. July soybean meal fell $4.50 per ton to close at $396.70. July soybean oil ascended 1.66¢ to close at 50.92¢ a lb.

• Large technology company shares powered small gains Tuesday that saw the Nasdaq and S&P 500 indexes post fresh closing highs for the year. The Dow Jones Industrial Average added 10.42 points, or 0.03%, to close at 33,573.28. The Standard & Poor’s 500 climbed 10.06 points, or 0.24%, to close at 4,283.85, the highest since August but about 10 points shy of exiting its longest bear market since the 1940s. The Nasdaq Composite advanced 46.99 points, or 0.36%, to close at 13,276.42.

• US crude oil futures lower Tuesday after a three-session rally. The July West Texas Intermediate (WTI) light, sweet crude future declined 41¢ to close at $71.74 per barrel. 

• The US dollar index strengthened Tuesday after a day earlier posting a bifurcated directional trend. 

• US gold futures advanced even as the dollar did the same. June gold added $7.50 to close at $1,965.50.

Recap for June 5

• Signals of further erosion of export demand for US supplies weakened sent corn and soybean futures lower Monday to open the trading week. Wheat futures, meanwhile, firmed with hard red winter and hard red spring contracts posting the widest gains as traders considered tight global stocks of high protein supplies and concerns that key growing areas of Europe and the Black Sea region could see harvests cut by dry soils. July corn futures were down 11½¢ to $5.97½ a bu. Chicago July wheat added 5¢ to close at $6.24 a bu. Kansas City July wheat jumped 10¢ to close at $8.22¼ a bu. Minneapolis July wheat advanced 12½¢ to close at $8.20¼ a bu. July soybeans dropped 2½¢ to close at $13.50 a bu. July soybean meal added $3.40 per ton to close at $401.20. July soybean oil retreated 0.24¢ to close at 49.26¢ a lb.

• US equity markets fell back Monday after the Institute for Supply Management said the services sector of the economy expanded more slowly in May than economists expected. Afterward, the two-year Treasury yield fell to 4.480% from 4.501% Friday, while the yield on the 10-year note closed at 3.691%, unchanged from Friday. The S&P 500 fell just short of a new bull market. The broad-based index had been in a bear market for 245 trading days, the longest stretch since 1948. The Dow Jones Industrial Average fell 199.90 points, or 0.59%, to close at 33,562.86. The Standard & Poor’s 500 fell 8.58 points, or 0.2%, to close at 4,273.79. The Nasdaq Composite dropped 11.34 points, or 0.09%, to close at 13,229.43.

• US crude oil futures were higher again Monday for a third consecutive session. The July West Texas Intermediate (WTI) light, sweet crude future advanced 41¢ to close at $72.15 per barrel. Support came after Saudi Arabia and the larger OPEC-plus group met over the weekend and agreed to more production cuts to compensate for weakening demand.

• The US dollar index posted a mixed close to open the trading week. The June dollar weakened but the September dollar strengthened slightly. 

• US gold futures advanced, June gold adding $5.60 to close at $1,958.