July 18, 2023 – Update

US farm markets closed mostly lower on Monday. Corn prices dropped 1.43%. Soybeans picked up 0.25% thanks strength in soymeal which closed 2.50% higher, while soyoil faded 0.45% into the red. The wheat complex dropped through all the three markets, settling near their lows for the day. Chicago SRW indeed was down 1.17%, after Sep seeing a 38 cent range on the day. Kansas City HRW went home with 1.66% losses. Minneapolis HRS held relatively firm, closing with 0.68% losses. Ukraine Black Sea grain deal, has officially expired, after Russia refused to renew it. That should have been bullish news both for corn and wheat prices, but markets’ reaction suggest that it may have already been priced in. Lackluster US weekly export inspection data, weighed even more on the markets. In Europe, grain and oilseed prices rose, on concern about tighter supplies after Russia withdrew from Black Sea agreement, although gains were capped by strength in euro and large Russian supplies. Meanwhile, European durum wheat jumped more than 6% higher, as Canada still suffering from a marked water deficit especially in Saskatchewan. Oil prices dropped by more than 1.5% on weaker than expected Chinese economic growth, and the partial restart of halted Libyan output. The Baltic Exchange’s main sea freight index in London slipped 1.6%, on weaker vessel demand. On Wall Street, US stock indexes closed higher on lower bond yields and positive comments from Yellen. The DXI fell by -0.08%, as hawkish comments from ECB Governing Council member Nagel pushed the euro higher, while lower US T-note yields weighed on the dollar.