Another daily export sale was announced this morning. A total of 1,088,000 metric tons of corn sold to China. Of the total, 476,000 was old crop and 612,000 is new crop. With the big corn sale, one would have expected to see corn prices sharply higher. Futures briefly started higher, but within minutes of the 8:30 open had traded slightly lower, and are now quietly higher. Soybean prices have drifted lower this morning. May is down 12 while new crop is down 3.
The Weekly Export Sales report was released this morning. The report was disappointing for wheat, on the low end for corn, and near the high end for soybeans.
Livestock prices are mixed this morning. Feeder Cattle are trying to rebound as August is up 90 cents. Live Cattle are quietly higher with April up 50 cents an June up 20 cents. Lean hogs are trading the opening lows down 65 to 75 cents.
The U.S. economy contracts in first quarter of 2022. We went from 6.9% growth in the fourth quarter last year to -1.4% contraction. The average estimate for the report was a mild 1% increase. Traders have to decide if this is a one-off report and things will return to small, positive growth next quarter. Or, is this the start of a very worrisome trend in the U.S.?
Crude oil is up 50 cents near the 102.50 mark this morning. The U.S. dollar continues to climb higher as futures are up 0.74 points today at 103.70. The high so far today came within 0.01 of the March 2020 high. Keep an eye on what happens if prices can break over this key target.
About the Author: Bob Linneman is a commodities broker with Kluis Commodity Advisors. Linneman grew up on a diverse farm in eastern South Dakota. Between milking cows, managing a beef herd, and farming various crops, he experienced many aspects of agriculture firsthand. After graduating from North Dakota State University with a degree in business, he moved to Hawaii with his wife. There he was an associate portfolio manager for a fixed income firm that managed $2 billion in assets. After nearly two years in Hawaii, he moved back to the Midwest and began his career in commodities. Linneman is licensed as a Series 3 and Series 30 commodity broker.
