Wheat Futures Soar on Unexpectedly Bullish U.S.D.A. Data

(Food Business News) – Recap for July 11

• Winter wheat futures surged about 20c to 24c a bu nearby while spring wheat futures were up about 12c a bu Thursday as the U.S.D.A., in its World Agricultural Supply and Demand Estimates Report, sharply reduced its forecast of world wheat production, exports and ending stocks, paving the way for a boost in U.S. export projections for 2019-20. U.S. wheat production forecast for 2019 was raised but near trade expectations. Corn and soybean futures also advanced, in part following wheat, but also discounting supply-and-demand forecasts based on data from U.S.D.A. June 28 Acreage report, which trade highly doubted. Corn supply-and-demand data otherwise would have been bearish. September corn futures rose 9¼c to close at $4.44¼ a bu. August soybean futures rose 4½c to close at $8.99 a bu. August soybean meal gained $1.70 to close at $312.40 a ton. August soybean oil advanced 0.09c to close at 28.18c a lb. Chicago September wheat added 16¾c to close at $5.21½ a bu. Kansas CitySeptember wheat rose 20c to close at $4.61½ bu. Minneapolis September rose 12½c to close at $5.41¼ a bu.
• U.S. stock indexes closed mixed Thursday, but the DJIA ended above 27,000 for the first time ever with help from a rally in health care stocks. The Dow Jones Industrial Average advanced 227.88 points to close at 27,088.08. The Standard & Poor’s 500 Index gained 6.84 points to close at 2,999.91. The Nasdaq Composite closed 6.49 points lower at 8,196.04.
• U.S. crude oil futures eased Thursday but held above the psychological $60-per-barrel level on continued concern about global supply. The August contract settled 23c lower at $60.20 per barrel.
• The U.S. dollar edged lower on Thursday.
• U.S. gold futures declined Thursday despite the weaker dollar. The August contract was down $5.80 at $1,406.70 an oz.

Recap for July 10

• U.S. stock indexes closed at or near record highs Wednesday after Federal Reserve Chairman Jerome Powell indicated an interest rate cut to support the lackluster economy was likely. The Dow Jones Industrial Average advanced 76.71 points to close at 26,860.20. The Standard & Poor’s 500 Index gained 13.44 points to close at 2,993.07 after pushing above 3,000 for the first time during the trading session. The Nasdaq Composite closed 60.80 points higher at a record high 8,202.53.
• Soybean futures posted solid gains while soybean meal and oil futures edged higher Wednesday on position squaring ahead of Thursday’s U.S. Department of Agriculture supply-and-demand report, which traders expect will show lower soybean production and carryover from June forecasts. Corn futures advanced on position squaring as well. Wheat futures mostly posted small gains on short covering and position squaring ahead of Thursday’s supply-and-demand and Crop Production reports, with the latter offering the first wheat-by-class production estimates for the 2019-20 season. September corn futures rose 2½c to close at $4.35 a bu. August soybean futures rose 8½c to close at $8.94½ a bu. August soybean mealgained $1.50 to close at $310.70 a ton. August soybean oil edged up 0.08c to 28.09c a lb. Chicago September wheat added 2c to close at $5.04¾ a bu. Kansas City September wheat rose 2¼c to close at $4.41½ bu. Minneapolis September rose 2¼c to close at $5.28¾ a bu.
• U.S. crude oil futures surged to seven-week highs Wednesday on reports of declining inventories and global supply concerns. The August contract settled $2.60 higher at $60.43 per barrel.
• The U.S. dollar closed lower on Wednesday.
• U.S. gold futures advanced Wednesday as the dollar weakened. The August contract was up $12 at $1,412.50 an oz.

Recap for July 9

• Corn futures closed lower Tuesday on improving weather and higher crop condition ratings released by the U.S. Department of Agriculture Monday afternoon. Wheat futures were pulled lower by spillover pressure from corn as well as pressure from the advancing winter wheat harvest and weak export demand. Soy complex futures were bolstered by lower crop condition ratings and hope for increased soybean sales to China. September corn futures fell 7c to close at $4.32½ a bu. August soybean futures rose 7c to close at $8.86 a bu. August soybean mealgained $3.40 to close at $309.20 a ton. August soybean oil edged up 0.02c to 28.01c a lb. Chicago September wheat dropped 8¼c to close at $5.02¾ a bu. Kansas City September wheat eased 1½c to close at $4.39¼ bu. Minneapolis September dropped 6c to close at $5.26½ a bu.
• U.S. stock indexes ended mixed Tuesday as technical stocks improved but concern about trade brought countering pressure, with uncertainty about interest rates ahead of this week’s Federal Reserve meeting. The Dow Jones Industrial Average declined 22.65 points to close at 26,783.49. The Standard & Poor’s 500 Index gained 3.68 points to close at 2,979.63. The Nasdaq Composite advanced 43.35 points to close at 8,141.73.
• U.S. crude oil futures advanced Tuesday as worries about supply, in part due to tensions between the United States and Iran, outweighed demand concerns. The August contract settled up 17c at $57.83 per barrel.
• The U.S. dollar closed higher on Tuesday.
• U.S. gold futures edged higher Tuesday. The August contract was up 50c at $1,400.50 an oz.

Recap for July 8

• Corn and soybean futures closed higher Monday on forecasts of hot, dry weather that may be detrimental to the crop over the next couple of weeks. Wheat futures were mostly lower as winter wheat harvest advanced and global supplies remained ample. September corn added ¾c to close at $4.39½ a bu. August soybeans rose 3c to close at $8.79 a bu. August soybean meal was unchanged at $305.80 a ton. August soybean oil gained 0.43c to 27.99c a lb. ChicagoSeptember wheat dropped 4c to close at $5.11 a bu. Kansas City September wheat lost 4½c to close at $4.40¾ bu. Minneapolis September eased ¾c to close at $5.32½ a bu.
• Stocks continued to decline Monday on ideas the Federal Reserve may be less aggressive in cutting interest rates after the July 5 employment report showed an uptick in the unemployment rate. The trade also awaited news on economic direction from the Federal Reserve meeting later this week. The Dow Jones Industrial Average declined 115.98 points to close at 26,806.14. The Standard & Poor’s 500 Index dropped 14.46 points to close at 2,975.95. The Nasdaq Composite fell 63.41 points to close at 8,098.38.
• U.S. crude oil futures edged higher Monday ahead of key domestic and global energy supply and demand reports later this week. The August contract settled up 15c to close at $57.66 per barrel.
• The U.S. dollar closed higher on Monday.
• U.S. gold futures eased Monday as the dollar firmed. The August contract was down 10c at $1,400 an oz.

Recap for July 5

• Support from weekly export sales Friday was insufficient to overcome relatively ample U.S. soybean stockpiles, improved crop weather and demand uncertainty amid the ongoing trade dispute with China. The soy complex closed lower. Corn edged higher by the close in choppy trading with support from tightening supplies and uncertainty regarding the 2019 crop.  Wheat futures were pressured by disappointing weekly export sales and some rain events deleted from forecasts. July corn added 1c to close at $4.34c a bu. July soybeans fell 13c to close at $8.72¼ a bu. July soybean meal fell $2.20 to close at $303.80 a ton. July soybean oil fell 0.58c to 27.44c a lb. Chicago July wheat edged up 1¼c to close at $5.19¼ a bu, though later months were mixed, as they were in  Kansas City, where the July future added 3c to close at $4.39 a bu. Minneapolis July was down 6¼c to close at $5.34¼ a bu.
• A Labor Department report Friday said U.S. employers added 224,000 jobs last month, and the jobless rate ticked up from a 50-year low to 3.7%, partly on more Americans saying they were seeking work. But the report muddied the waters of a potential interest-rate cut from the Federal Reserve, and U.S. equity markets declined as a result. The Dow Jones Industrial Average subtracted 43.88 points to close at 26,922.12. The Standard & Poor’s 500 Indexdipped 5.41 points to close at 2,990.41. The Nasdaq Composite fell 8.44 points to close at 8,161.79.
• U.S. crude oil futures ticked higher Friday, the August contract was up 17c to close at $57.51 per barrel.
• The U.S. dollar closed higher a day after the nation marked the anniversary of its independence from England.
• U.S. gold futures declined Friday, the August contract was down $20.80 at $1,400.10 an oz.