Corn is currently up 6¢. Soybeans are up 18¢.
CBOT wheat is up 10¢. KC wheat is up 20¢. Minneapolis wheat is up 16¢.
Bob Linneman, commodities broker for Kluis Commodity Advisors, says an Oklahoma wheat tour report released earlier this week had very poor production estimates because of the drought.
“Wheat prices shot higher and were able to hold those gains,” he says. “Some weather models are suggesting more rain in coming days for a large area across the upper plains. Traders will be closely watching for the correlation of forecasts vs. reality of rainfall totals. If the models prove to be correct, then this could give the bears an advantage early next week.”
Speaking of bearish news, Linneman says yesterday’s USDA Export Sales report was concerning for traders because it was the first time in 20 years corn had a net reduction in April.
“China cancelled roughly eight cargoes during a time of the year that U.S. corn typically shines in the sales department,” he says.
Live cattle are up $1.50 this morning. Lean hogs are down 75¢. Feeder cattle are up $1.33.
Crude oil is up $3.14, taking back some of its recent losses.
S&P 500 futures are up 58 points. Dow futures are up 470 points.
Note: Yesterday’s morning market update incorrectly reported that the USDA weekly Export Sales report showed net corn sales when it actually showed a net reduction of 315,600 metric tons.