Wide wheat-corn spread boosts latter
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Soybean futures gained support from wheat, though limited by quick planting progress and ample global supplies. Corn futures rose on wheat’s premium to corn since 2022. July corn closed at $4.61¼/bu. US equities fell as Federal Reserve minutes showed uncertainty about inflation. Dow Jones declined to 39,671.04, S&P 500 to 5,307.01, Nasdaq to 16,801.54. Crude oil dropped to $77.57/barrel. Gold declined to $2,392.90/oz. US dollar index rose for a third day.
- Soybean futures posted gains Wednesday on spillover support from wheat, but the advances were limited by quick planting progress and ample global supplies. Wheat futures briefly went higher on frost and drought concerns in Black Sea wheat, but all classes turned lower by the close as Russian forecasts contained rain in the next 11 to 15 days. Corn futures jumped in the wake of wheat touching the highest premium to corn since 2022 generated ideas producers might feed more corn. Soybean futures also were higher on spillover strength. July corn rose 3¼¢ to close at $4.61¼ a bu. Chicago July wheat dropped 4½¢ to close at $6.93 per bu. Kansas City July wheat slipped 2¢ and closed at $6.99½ per bu. Minneapolis July wheat was down 2¼¢ and closed at $7.36½ per bu. July soybeans jumped 10¢ to close at $12.46¼ per bu. July soybean meal added $5.90 to close at $378.20 per ton. July soybean oil rose 0.07¢ to close at 45.88¢ a lb; the October future was steady and beyond were lower.
- US equity markets pulled lower Wednesday on the release of the minutes from the Federal Reserve meeting three weeks earlier in which governors expressed uncertainty about price
- pressures and said recent data didn’t generate confidence that inflation was moving toward the central bank’s 2% goal. Some officials mentioned “a willingness to tighten policy further should risks to inflation materialize in a way that such an action became appropriate,” the minutes said. The Dow Jones Industrial Average declined 201.95 points, or 0.51%, to close at 39,671.04. The Standard & Poor’s 500 dropped 14.4 points, or 0.27%, to close at 5,307.01. The Nasdaq Composite dropped 31.08 points, or 0.18%, to close at 16,801.54.
- US crude oil prices declined Wednesday. The July West Texas Intermediate light, sweet crude future dropped $1.09 to close at $77.57 per barrel.
- US gold prices for a second day declined from Monday’s all-time high. The June contract shed $33 and closed at $2,392.90 per oz.
- The US dollar index edged higher for a third day Wednesday.
Source Link: https://www.foodbusinessnews.net/articles/7-wide-wheat-corn-spread-boosts-latter
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