July 19, 2023 – Update

US farm markets closed mostly higher on Tuesday. Corn prices jumped 5.91%. Soybeans picked up 0.54%. The rest of the soy complex was mixed, as soymeal tracked 1.91% higher, while soyoil faded 1.1% lower. Winter wheats closed up, with Chicago SRW climbing 2.60%, and Kansas City HRW rising 1.47%. Minneapolis spring wheat, in contrast, failed to follow suit, easing 0.09%. Wheat and corn prices advanced after Russian air strikes damaged infrastructure at the Black Sea port of Odesa. Corn and soybeans prices rose also on forecasts for a hotter-than-normal second half of July, while corn is in a critical pollination phase. Several corn tenders issued by some importer countries made an additional support. Also money flowing into the markets, helped boost prices. Soybean gains however, were capped by USDA’s better-than-expected quality ratings, while prices had already touched a one-month high. In Europe, grain and oilseed prices rose after a Russian airstrike hit an grain terminal in Odessa port, while a heat wave affecting the Mediterranean basin, added a climate risk premium. Oil prices climbed about 1.5%, on expected economic support in China, and weaker US output. The Baltic Exchange’s main sea freight index in London fell 3.4%, closing for a third straight day with losses. On Wall Street, US stock indexes posted moderate gains on strength in bank stocks and lower bond yields. The DXI rose by +0.1%, with the dollar recovering from early losses on expectations for the Fed to raise interest rates by 25 bp at next week’s FOMC meeting, while the EUR/USD retreated on dovish comments from ECB Governing Council member Knot.