July 6, 2023 – Update

US farm markets were back in full swing on Wednesday. Wheat prices were red-hot, following the holiday break. Chicago SRW indeed gained 5.06%, Kansas City HRW climbed 6.25%, and MGEX HRS rose 5.96%. Corn prices, in contrast, faded back into the red, down 0.56%. Soybean prices followed corn lower, but were able to close fractionally higher, up 0.07% at the bell. The rest of the soy complex was mixed, as soymeal closed with 0.39% losses, while bean oil ended up 2.14%, leading the Aug contract to a new high for the year. Wheat prices surged amid slow winter wheat harvesting and deteriorating spring crop conditions. Corn prices ended lower as rains and forecasts for further showers have reduced worries about early season dryness in the heart of the Midwest. Soybeans were firmer on spillover support from wheat and worse-than-expected crop ratings, but ended the session substantially unchanged. In Europe, grain prices rose sharply, with wheat settling up 2.3% supported by renewed concerns over a nuclear power plant in Ukraine as well as weather stress for North American crops. Meanwhile rapeseed eased slightly. U.S. crude oil gained about 3%, narrowing the price gap with Brent after the Independence Day holiday, while Brent rose by 0.5%. The Baltic Exchange’s main sea freight index in London declined 4.8%, falling to its lowest in one month. On Wall Street, US stock indexes settled lower after the release of the hawkish minutes of the Jun 13-14 FOMC meeting. Strength in the mega-cap tech stocks limited losses. The DXI rose +0.37% on strength in US T-note yields, and a liquidity demand as stocks slumped.