July 20, 2023 – Update

US farm markets continued to push higher on Wednesday. Corn prices grabbed double-digit gains, closing 3.17% higher. August soybean eased 0.03%, but Sep contract rose about 1%. The rest of the soy complex was firm, with soymeal picking up by 0.25%, while soyoil prices jumped 3.12% higher. Wheat prices climbed across all the board, with Chicago SRW skyrocketing, closing 8.50% higher. Kansas City HRW jumped 4.77%, and Minneapolis spring wheat rose 2.25%. Wheat prices had the biggest daily gain since the day after Russia-Ukraine war started, as intensification of the conflict threatened to slow grain export shipments from the Black Sea region. Corn and soybean prices also were strong, with soybeans posting their fifth straight day of gains and hitting their highest level in more than a month as forecasts for hot and dry weather raised concerns about crop stress in the U.S. Midwest. In Europe, wheat, corn and rapeseed soared after Moscow said it would consider Ukraine-bound ships as potential carriers of military cargo. Oil prices dipped about 0.5%, on profit-taking despite tighter U.S. supplies The Baltic Exchange’s main sea freight index in London lost 3.2%, falling for a fourth straight session. On Wall Street, US stock indexes kept only moderate gains, while bond yields remained lower, on weaker-than-expected U.S. June housing starts report. The DXI rose +0.36% on weakness in the British pound and the yen, though the decline in T-note yields, limited the dollar’s upside.