August 1, 2023 – Update

US farm markets sold off on Monday. Corn prices slashed by 3.26%. Soybean prices tumbled 4.36%. The rest of the soy complex was also in the red, with soymeal falling 2.26%, while soyoil futures eroded 3.85% lower. Wheats dropped sharply, with Chicago SRW falling 5.47%, Kansas City HRW tumbling 5.08%, and Minneapolis spring wheat losing 4.49%. Chicago soybeans and corn fell, pressured by expectations of cooler, wetter weather across the U.S. Midwest in August. Wheat prices dropped, despite worries over Black Sea supplies, as no new major Russian attacks on Ukrainian grain infrastructure were reported over the weekend. Also, the ongoing seasonal harvest, weighed on wheat prices. Lingering demand concerns and spillover weakness from other commodities made an additional pressure. Meantime, traders also locked end month profits. To note durum wheat prices skyrocketed, bucking the overall trend, and the market is in highly overbought territory. In Europe grain and oilseed markets fell sharply on US drop, and Russia competition. Oil prices rallied to a fresh three-month high recording their steepest monthly gains since January 2022. The Baltic Exchange’s main sea freight index in London gained 1.5%, posting its second straight monthly gain. On Wall Street, US stock indexes posted modest gains, on positive global economic news. The DXI rose by +0.22%, recovering from early losses due to weakness in the yen, which fell to a 3-week low against the dollar, on BOJ’s unscheduled bond buy.