Wheat futures lower on supply, export pressure
Wheat futures fell on Tuesday due to ample global supplies and increased export competition from Russia, whose production forecasts have improved. U.S. spring wheat ratings were better than expected, and markets awaited results from the Wheat Quality Council’s tour. Corn and soybeans saw gains due to weather concerns and slight dips in USDA condition ratings. The Dow Jones, S&P 500, and Nasdaq closed lower amid corporate earnings reports. Crude oil prices dropped to their lowest since June, while gold prices rose despite a stronger dollar.
Wheat futures closed lower Tuesday on pressure from ample global supplies and export competition from Russia as production forecasts for that country have risen after being lowered a few weeks back because of adverse weather. Spring wheat crop condition ratings from the US Department of Agriculture on Monday were above expectations, and the trade awaited results from the Wheat Quality Council’s spring wheat and durum tour later this week. Corn and most soybean futures closed higher on short covering and concerns about weather as the USDA’s corn condition rating on Monday slipped slightly from a week earlier and the soybean rating was unchanged; both remained well above year-ago levels. September corn gained 2¼¢ to close at $4.02½ a bu. Chicago September wheat dropped 5¼¢ to close at $5.42¾ per bu. Kansas City September wheat declined 5¢ to close at $5.66¾ a bu. Minneapolis September wheat fell 7¼¢ to close at $6.15½ per bu. August soybeans eased ¼¢ to close at $11.17½ per bu, but all later months were higher. August soybean meal eased 90¢ to close at $342.70 per ton; later months were unchanged to lower. August soybean oil lost 0.34¢ and closed at 46.66¢ a lb; later months were mostly higher.
US equity markets gave back some of the prior day’s gain with all three indexes closing lower Tuesday as investors processed corporate earnings reports. The Dow Jones Industrial Average dropped 57.35 points, or 0.14%, to close at 40,358.09. The Standard & Poor’s 500 slipped 8.67 points, or 0.16%, to close at 5,555.74. The Nasdaq Composite eased 10.22 points, or 0.06%, to close at 17,997.35.
US crude oil futures continued their downward slide Tuesday, falling to their lowest level since June 7. The September West Texas Intermediate light, sweet crude future dropped $1.44 to close at $76.96 per barrel.
The US dollar index strengthened again Tuesday.
US gold prices rose Tuesday despite the stronger dollar. The August contract added $12.60 to close at $2,407.30 per oz.
Source Link : https://www.foodbusinessnews.net/articles/7-toasty-midwest-forecasts-push-corn-soybeans-higher
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