July 12, 2023 – Update

US farm markets were mostly higher on Tuesday. Corn prices faded their initial strength, but held onto 0.46% gains. Soybeans extended their gains by 1.10%. Soymeal took the lead and closed with 2.56% gains. Soybean oil cooled off from the sharp gains out of the weekend, giving back 1.07%. The wheat markets faded from early gains, but were still higher on the day. Chicago SRW indeed rose 2.21%, Kansas City HRW added 0.71%, and MGEX HRS climbed 1.62%. Traders spent Tuesday squaring positions ahead of this morning’s WASDE report. The market is expecting corn yields with a 176/77bu/ac type yield, down from 181.5bu/ac. Wire sources had private analyst Dr. Michael Cordonnier’s U.S. soybean yield estimate at 50.5 bpa – UNCH from his prior figure. The result was a lot of technical buying that pushed corn, soybeans and wheat higher. Wheat gains were even more robust amid ongoing geopolitical issues in the Black Sea region. In Europe grain prices rose on geopolitical fears and some disappointing crop results. Meanwhile rapeseed jumped on the wake of crude oil strength, the rise in soybeans and especially in Canadian canola, which reached a 4-month high in Winnipeg. Oil prices settled up 2% at 10-week high on weaker US dollar, rising demand forecasts. The Baltic Exchange’s main sea freight index in London edged 0.8% higher, on panamax and supramax gains. On Wall Street, US stock indexes closed moderately higher, on hopes that U.S. inflation news, will show a continued easing of price pressures. The DXI fell by -0.24% and posted a 2-month low, on lower US T-note yields, strength in stocks, and more Chinese economic support measures strengthened the yuan.