Closing Market Report- 7/2/21- Pressure in Wheat Pulls Grains Lower Ahead of Holiday Weekend


In choppy and volatile trade the corn and wheat markets came under heavy selling pressure on Friday. The weakness comes despite limited rain and warming temperatures expected over the next seven to 10 days in the arid Northwest, Northern Plains and the Canadian Prairies. News that the U.S. ag attache in China has reduced China corn imports by 6 mmt for the coming year added to pressure. Also, news that a D.C. Circuit Court of Appeals has reversed the 2019 EPA rule that lifted restrictions on the sale of E15 added to the pressure. The soybean and meal markets felt the pressure from wheat and corn and traded lower on the day with soybean oil holding some strength.

The livestock market hasn’t had much action develop throughout Friday’s trade as most traders are already checked out for the Fourth of July weekend. The market was hoping to see some more cash cattle trade develop before the week’s end, but without any bids being renewed at this point, it’s unlikely that any trade will really develop. The market will need to see significant movement next week, and hopefully, packers will see the importance of supporting the cash market and running faster kill schedules as coolers will need replenished.

Farm and Ranch Director Jesse Allen has our closing report:

Also, more analysis with Jesse Allen and Ted Seifried of Zaner Ag Hedge on today’s episode of Market Talk below: