July corn was 3 cents lower at $3.99 1/4, with December 2 1/4 cents lower at $4.17. July soybeans finished 19 cents lower at $9.99 3/4, with November down 15 3/4 cents at $10.09. July Chicago wheat closed 3/4 cent higher at $4.94 1/4, July Kansas City was 4 1/4 cents higher at $5.14 and July Minneapolis gained 6 cents to $6.12 1/4. June gold was $2.30 higher at $1,292.60, with July silver up $0.156 and June copper gaining $0.0230. The Dow Jones Industrial Average (DJIA) rallied 90 points to 24,795. June crude oil was $0.13 lower at $71.18. The June distillates (heating oil) contract was $0.0107 higher, June RBOB gasoline gained $0.0324 and June natural gas lost $0.021.
Corn gave back much of Tuesday's rally with a late sell-off Wednesday. Futures spreads indicate most of the pressure in old-crop came from noncommercial selling, not surprising given Tuesday's late move, while old-crop saw light commercial interest. Technically the end of the week could be important to both old-crop July and new-crop December contracts, if one or both of them hit new weekly lows. This could trigger increased noncommercial selling and confirm previous indications of short-term downtrends.
The soybean market was hit hard Wednesday, erasing Tuesday's late gains, as contracts fell to sharp double-digit losses. Old-crop July was down 19 cents at the close, after hitting the 20-cent down market late in the session. Commercial selling was indicated by action in both old-crop and new-crop futures spreads. From a technical point of view, the July contract looks to be on the path of testing support at $9.94 3/4. As an observation, Wednesday's close in July soybeans was the first below $10 since February 5.
The wheat complex closed higher Wednesday, fighting off potential spillover support from the rest of the grain and oilseed sector, yet unable to provide much late support. Minneapolis spring wheat led the way on renewed commercial buying interest, most notably in the new-crop September-to-December futures spread. Technically the July Kansas City contract continues to hold support at $5.11 1/2, a move that could spark increased buying interest to close out the week.
Darin Newsom can be reached at email@example.com
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