Grain Markets Rally at Resistance and Sell at Close | Wednesday, August 10, 2022

Grain markets rally at resistance and sell off at close: 2:30 p.m.

Grain markets opened higher, rallied to resistance and sold off on the close. The long-term outlook is now looking a little damper and traders are on the sidelines ahead of the USDA’s monthly crop production report due out on Friday.

The September trading range was 9¢. The market closed 6¢ higher at $6.21, 10¢ lower than the high.

The price range for November soybeans was 32¢. The November contract closed 1¢ at $14.28 and was 27¢ off the top.

For September CBOT wheat, the trading range was 28¢. The Chicago market closed up 18¢. Minneapolis was up 13¢ and KC closed up 21¢ on the day.

I mentioned in the midday update that December corn had resistance at $6.24. It traded above this resistance but closed below 6¢. For November, soybean resistance was at $14.50, with prices trading 5¢ above that key level but closing 22¢ below.

In the United States, stocks are up sharply with the Dow Jones up 437 points at this time.

In cattle markets on Wednesday, October hogs closed up $1.25. October Cattle closed $1.30 higher and November Feeder Cattle closed $2.50 higher.

Grain markets add to early gains at noon: 11:45 a.m.

Grain markets opened higher and added to initial gains as fund buying ramped up and the dollar fell.

September corn is up 13¢ while December corn is up 9¢. August soybeans are trading at 28¢ more and November soybeans at 16¢. Wheat futures prices are 12¢ to 20¢ higher.

On the Dalian Commodity Exchange in China, corn and soybean futures are mixed. On the Matif exchange in Europe, wheat futures are 1¢ a bushel higher at $11.21.

On my charts, here are some of the key resistance levels I’m watching through the close of trade today – December corn $6.24 and November soybeans $14.50. Going above these levels on today’s close will result in more fund buying.

Across the world in the stock market, China is down 0.5%. Japan is down 0.6%. European stocks are up 0.2%. In the United States, stocks are up sharply with the Dow Jones up 470 points at this time.

In the livestock markets on Wednesdays. October hogs are up 70¢. October cattle are up $1.20 and November feeder cattle are trading 50¢ higher.

Weather Concerns and Inflation Data Stimulate Market | 8:45 am

Grain markets are higher today due to weather concerns and US CPI data which showed inflation at 8.5% from 9.1% last month. More importantly, core inflation came in at 0.3% from 0.7% last month, which was positive for grain and equity markets as the US dollar fell more than 1%.

September corn is up 10¢ while December corn is up 8¢. August soybeans are trading at 28¢ more and November soybeans at 16¢. Wheat futures are 12¢ to 16¢ higher.

On the Dalian Commodity Exchange in China, corn and soybean futures are mixed. On the Matif exchange in Europe, wheat futures are 1¢ a bushel higher at $11.21.

I’m becoming more concerned by the day about the crop yield potential in the Western Cornbelt and Southern Plains. Tomorrow we get the weekly export sales report from the USDA, and it was an active week with China buying soybeans and Europe buying corn.

In the livestock markets on Wednesdays. Futures are higher with big gains in the stock market with the Dow Jones now up over 500 points

For a free trial of the Kluis Report, including tri-daily market updates and the Saturday newsletter, visit kluiscommodities.com, call 888-345-2855, or email info@kluiscommodityadvisors.com .

About the Author: Al Kluis has been an advisor and commodity broker since 1976. Kluis is an introducing broker at Wedbush Futures and writes a column, Your Profit, which appears in every issue of Successful Farming magazine. Kluis has published two books on commodity trading and is often quoted in major publications, including the Wall Street Journal. He is also a guest speaker at commodity conferences nationwide. Kluis is a frequent market analyst for the Linder Farm Radio News Network. A Minnesota farm boy, Kluis earned his degree in agricultural economics from the University of Minnesota in 1974, after which he served as executive director of the Minnesota Soybean Association before entering the markets full-time. His family still farms in southwestern Minnesota, and Kluis likes to help with field work when markets permit.

Editor’s note: The risk of loss when trading futures and/or options is substantial, and each investor and/or trader should consider whether it is a suitable investment. Past performance – whether actual or indicated by simulated historical testing of strategies – is not indicative of future results. Trading advice reflects good faith judgment at the time and is subject to change without notice. There is no guarantee that the advice given will result in profitable transactions.

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