Market to Market - Market Analysis

Profit taking, month-end and pre-election positioning combined to push the market lower.  For the week, December wheat dropped 34 cents while the nearby corn contract fell 21 cents. The bean bulls got wet under some South American rain. The January soybean contract decreased 25 cents. December soybean meal weakened $7.80 per ton. December cotton shrank $2.37 per hundredweight. In the dairy parlor, November Class III milk futures added $1.67. A mixed week in the livestock sector. December cattle gained $4.72. January feeders jumped $8.58. And the December lean hog contract sold off $1.45.

Weather and demand again drove the trade train higher this week. For the week, December wheat increased 8 cents while the nearby corn contract jumped 17 cents. Strong export news helped push the soy complex to a 51-month high at one point this week. The November soybean contract gained 34 cents. December soybean meal improved $18.90 per ton. December cotton expanded $1.37 per hundredweight. Over in the dairy parlor, November Class III milk futures added $1.27. A down week in the livestock sector. December cattle shed $5.05. November feeders dropped $5.38.

The big three commodities reached closes that were significantly higher at some point during the week as different stories involving China and Brazil weighed on the trade. For the week, December wheat increased 31 cents while the nearby corn contract gained 7 cents. A big selloff on Monday pushed the soybean complex into catch up mode the rest of the week. The November soybean contract lost 16 cents. December soybean meal increased $3.80 per ton. December cotton expanded $2.28 per hundredweight. Over in the dairy parlor, November Class III milk futures improved $1.18.

Another USDA report kept the market turning higher as drier weather and global demand ate through stocks of grain. For the week, December wheat gained 21 cents while the nearby corn contract improved 16 cents. Dry weather in South America led to talk of a delayed crop. The November soybean contract leaped higher by 45 cents. December soybean meal strengthened $11.80 per ton. December cotton expanded $1.82 per hundredweight. In the dairy parlor, November Class III milk futures increased 44 cents. A mixed week in the livestock sector. December cattle improved $1.50.

Hello, I’m Paul Yeager. Health news about President Trump and the First Lady testing positive for COVID-19 overshadowed much of the economic news Friday morning. Overnight futures and foreign stock markets moved lower initially as other economic data was released. The Labor Department found 661,000 new jobs were added in September. However, it was the third straight month of slower hiring. The unemployment rate improved to 7.9 percent from 8.4 in August and is down from April’s 14.7 percent reading.

The bulls ran out of feed with many markets giving back last week’s gains. For the week, December wheat fell 31 cents while the nearby corn contract declined 13 cents. It only took a week for the soy complex to erase most of the nearly 50 cent rally as the Chinese buying spree stopped and combines rolled. The November soybean contract fell 41 cents. December soybean meal weakened $3.50 per ton. December cotton expanded 29 cents per hundredweight. Over in the dairy parlor, October Class III milk futures decreased 73 cents.     The livestock sector was mixed. December cattle shed 45 cents.

Paul Yeager: Improved crop conditions, pressured the market despite big sales to China. As of noon on Friday, September wheat fell 9 cents for the week while the nearby corn contract lost 11 cents. Soybeans waited on China to move into the complex. The September soybean contract dumped 10 cents August soybean meal lost two 30 per ton. December cotton found $2 and 10 cents per hundred weight. In the dairy parlor, September class three meal, future's decreased a $1.43.

The commodities were under pressure from weather and boosted by sales. For the week, September wheat gained a nickel while the nearby corn contract lost 7 cents. July has proven to be a big month of sales to China in the U.S. soy complex. The August soybean contract added 7 cents. August soybean meal improved $4.30 per ton. December cotton lost $1.70 per hundredweight. In the dairy parlor, August Class III milk futures decreased 70 cents. A mixed week in the livestock sector. August cattle dropped $1.95. August feeders shed 65 cents. And the August lean hog contract added $1.20.

China made major purchases in corn and wheat but it was wet weather that moved the markets. For the week, September wheat gained a penny while the nearby corn contract lost four cents. The soy complex received some attention from Chinese buyers to feed the bulls. The August soybean contract improved 11 cents. August soybean meal shed $6 per ton. December cotton lost $2.37 per hundredweight. In the dairy parlor, August Class III milk futures gave back 37 cents. A rally in the livestock sector. August cattle increased $3.28. August feeders expanded $6.95.

Much of the week’s gains were wiped out in the final session following the USDA report with the exception of wheat. For the week, September wheat jumped 42 cents or 8.5 percent while the nearby corn contract declined 6 cents. Weather concerns and higher ending stocks weighed on the soy complex. The August soybean contract fell four cents. August soybean meal shed $3.60 per ton. December cotton gained $1.37 per hundredweight. Over in the dairy parlor, August Class III milk futures kept the rally going with a $1.87 gain. A mixed week in the livestock sector.

USDA says 92 million acres were planted to corn this spring, down 5 million from the March intentions. The report gave the market a jolt in the trade-shortened holiday week. For the week, September wheat gained 16 cents while the nearby corn contract skyrocketed 25 cents despite a lower close Thursday. More acres turned to soybeans as the crop of choice and hotter weather started to weigh on the trade. The August soybean contract improved 32 cents. August soybean meal added $11 per ton. December cotton increased $3.44 per hundredweight.

Widespread rains and moderate temperatures provided near perfect growing conditions sending the bears into the market. For the week, September wheat shed 11 cents while the nearby corn contract plummeted 19 cents. Trade with China keeps weighing on the soy complex while timely moisture didn’t help support prices. The August soybean contract decreased 16 cents. August soybean meal dropped $4.20 per ton. December cotton lost 40 cents per hundredweight. In the dairy parlor, August Class III milk futures declined 34 cents. A mixed week in the livestock sector.

The weather kept itself in the headlines as hot and dry conditions worked over much of the grain belt. For the week, July wheat lost another 19 cents while the nearby corn contract improved 3 cents. China kept buying new crop U.S. soybeans to offer support for the soy complex. The July soybean contract increased 6 cents. July soybean meal fell $1.90 per ton. July cotton gained $1.79 per hundredweight. Over in the dairy parlor, June Class III milk futures improved 50 cents. A mixed week in the livestock sector.

Positioning ahead of a government report and weather had the most influence on the commodities market. For the week, July wheat lost 13 cents while the nearby corn contract declined a penny. USDA provided the soy complex with some bullish numbers but other good news for the oilseed was harder to come by. The July soybean contract gained 4 cents. July soybean meal fell a dime per ton. July cotton declined $1.95 per hundredweight. Over in the dairy parlor, June Class III milk futures improved 62 cents. Another down week in the livestock sector.

A weaker U.S. dollar pushed many commodities higher at week’s end, highlighting a spread with the Real. For the week, July wheat lost 6 cents while the nearby corn contract gained 6 cents. Some technical buying following strength in corn pushed the soy complex higher as optimism forms over Chinese buying. The July soybean contract increased 27 cents. July soybean meal improved $5.90 per ton. July cotton jumped $4.20 per hundredweight. Over in the dairy parlor, June Class III milk futures added $1.35. A down week in the livestock sector.