CORN

• Corn futures are trading sharply lower this morning as the market comes under pressure from a steep decline in crude oil prices. September corn is down 13-1/4 cents at $4.51, while December futures are 14-1/4 cents lower at $4.73-1/4.
• Crude oil futures tumbled 7% this morning after the U.S. and Iran paused military strikes over the weekend following two weeks of attacks. The de-escalation raised hopes for a diplomatic resolution to the conflict, reducing concerns over potential disruptions to oil shipments through the Strait of Hormuz.
• Adding pressure to grain markets, the U.S. Dollar Index has climbed to its highest level since May 12. A stronger dollar reduces the competitiveness of U.S. grain exports on the global market, creating additional headwinds for corn, soybean, and wheat prices.

SOYBEANS

• Soybean futures are sharply lower this morning, with old-crop contracts giving back a significant portion of last week’s gains. August soybeans are down 33-3/4 cents at $12.14-1/4, while November futures have fallen 35-1/4 cents to $12.18-1/4.
• Traders will be watching USDA’s Crop Progress report this afternoon for an updated look at crop conditions. Last week’s report rated 66% of the U.S. soybean crop as good-to-excellent, and the market will be focused on how recent weather has impacted crop conditions across the Corn Belt.
• Also of interest to the market will be any additional soybean purchases by China. Following recent buying activity and ongoing rumors of further demand, traders will be looking for follow-through purchases, as continued Chinese demand would provide additional support for soybean prices.

WHEAT

• The wheat complex is under pressure this morning, facing spillover weakness from sharply lower corn and soybean markets. Looking at September contracts, Chicago wheat is down 7-3/4 cents at $6.70-1/4, Kansas City wheat is 7-3/4 cents lower at $7.37-1/2, and Minneapolis spring wheat is down 7-3/4 cents at $7.06-1/2.
• Attacks on grain infrastructure and commercial vessels by both Russia and Ukraine continued to disrupt cargo movements in the Black Sea, raising concerns over grain supplies to key importers across the Middle East, Africa, and Asia.
• However, Ukraine said it was discussing mechanisms to keep commercial vessels moving through its Greater Odesa ports, raising hopes that Black Sea grain exports could continue despite the recent escalation in hostilities.

Author

Matthew Lucas