Wheat Futures Pull Other Grains Higher

Cattle futures touched a multi month low before closing unchanged in a quiet session on Monday, as a continued slide in beef prices pressured prices. Grilling demand ahead of Independence the holiday hasn’t been enough to prevent a sharp correction in beef prices, analysts say, with beef down around 11% since highs in mid-June.

August Live cattle closed steady at $116, the October contract fell 45 to $114,and August feeder fell 182 to $146.

Momentum from pork prices helped hog futures inch higher. Tight supplies of frozen pork bellies have sent prices upward. Concerns about hot weather also buttressed hog futures. Some forecasts show that the drought-like conditions stressing parts of the northern Plains could glide eastward.
July lean hog futures climbed 7 to 91.05, the August contract gained 65 to $84.40

Wheat futures hit new highs on Monday, yanking other grain and soybean contracts higher as traders jostled for position ahead of the July 4 break. Futures for spring wheat, a higher-protein grain that has been hit by drought-like conditions in the northern Plains, popped above $8 a bushel at the Minneapolis Grain Exchange for the first time in over three years. Other wheat classes traded at the Chicago Board of Trade also climbed to multiyear highs. That strength in turn helped carry corn and soybean contracts, which jumped out of recent ranges to close at multiweek highs. Those crops have been hit by mounting weather concerns of their own, with some forecasts showing the hot-and-dry Plains weather shifting eastward into the Midwest during corn’s critical yield-forming phase.

July KC wheat climbed 30 to $5.41, the September and December contracts also closed limit up, July Chicago wheat gained 25 ¾  to $5.36July soybean futures rose 22 ½  to $9.64, July Corn gained 7 ½  to $3.78.

Unfortunately, cotton futures didn’t join the grain party on Monday with the October contract dropping 152 to 68.84, and December dropping 114 to 67.45.

Oil futures surged to a one-month high Monday as new data caused investors to question whether U.S. oil production is as resilient as many anticipated.

Oil has now climbed for eight consecutive sessions — the longest rally for West Texas Intermediate  since a 10-session streak that ended Jan. 6, 2010.  August crude futures settled up $1.03 at $47.07, Gasoline futures rose 2.11 cents to $1.53 a gallon, and Diesel futures rose 2.97 cents to $1.51 a gallon.

Natural gas futures turned lower Monday, paring slight gains in earlier trading, as weather forecasts predicted cooler temperatures.  August Natural gas settled down 8.4 cents to $2.95.

On Wall Street, stock indexes kicked off the new quarter with gains on Monday as talk about interest rate hikes boosted bank stocks, while the dollar edged up from nine-month lows and U.S. Treasury yields hit their highest in more than eight years.  The Dow gained 129 to 21,479, the Nasdaq closed at 6,110, up 30 and the S&P 500 gained 5 to 2,429.

A native of the Texas Panhandle, Rhonda was born and raised on a cotton farm where she saw cotton farming evolve from ditch irrigation to center pivot irrigation and harvest trailers to modules. After graduating from Texas Tech University, she got her start in radio with KGNC News Talk 710 in Amarillo, Texas.