DES MOINES– On Friday, the wheat market continues its surge higher, while corn and soybean prices follow.
Drought stress to the U.S. spring wheat crop is propping up a rally for the wheat market, while dry weather post-July 4th has bullish investors buying.
Plus, the USDA’s June Acreage Report and Quarterly Grain Stocks Report have investors positioning themselves, before the 11:00am CT release of that data.
In early trading, the Sept. corn futures are 7 1/4¢ higher at $3.76 1/2, while December futures are 7 3/4¢ higher at $3.87.
Aug. soybean futures are 6¢ higher at $9.26, November soybean futures are 6 3/4¢ higher at $9.31.
September wheat futures are 14 3/4¢ higher at $5.10.
July soy meal futures closed $2.20 per short ton higher at $296.80. July soy oil futures are $0.05 higher at 32.57¢ per pound.
In the outside markets, the Brent crude oil market is $0.32 per barrel higher, the U.S. dollar is higher, and the Dow Jones Industrials are 72 points higher.
CME Group’s wheat futures finished double digits higher Thursday, following its cousin at the Minneapolis Grain Exchange to multiyear highs.
A drop in Canadian wheat acres from today’s StatCanada Report, combined with weather forecasts for the Northern Plains that don’t include much rainfall, has the bulls in charge of the wheat market.
The area has had little or no rainfall in the past month, leaving newly planted spring wheat at risk. About two thirds of the state is suffering drought conditions, while the rest is abnormally dry, according to the U.S. Drought Monitor.
About 40% of the spring wheat crop in the U.S. is rated good or excellent, well below the 72% at this time last year, according to the Department of Agriculture.
Chicago and Kansas City wheat are following spring futures higher. Dan Hueber, the author of the Hueber Report, said in a note on Thursday.
Corn and beans are higher amid technical buying on the back of wheat, and daily indicators are turning sideways to higher, Hueber said. Corn may be on the cusp of a cycle low, he said.
At the close, the September corn futures settled 3¼¢ higher at $3.69½, while December futures finished 3¾¢ higher at $3.80.
August soybean futures closed 1¾¢ higher at $9.20¾; November soybean futures ended 3¢ higher at $9.24¾.
September wheat futures closed 23¢ higher at $4.96.
July soy meal futures closed 20¢ per short ton lower at $296.40. July soy oil futures ended 0.27¢ higher at 32.52¢ per pound.
In the outside markets, the Brent crude oil market is 14¢ per barrel higher, the U.S. dollar is lower, and the Dow Jones Industrials are 161 points lower.