The Dow Jones Industrial Average settled at 31,392.79, down 1,506.91 points for the week.
Crude oil settled at $120.47, up 16 cents for the week.
The dollar index settled at 104.20, up 2.04 for the week.
Below is corn, soybeans and wheat basis situation this week.
Corn
July corn settled at $7.73¼, up 46¼ cents for the week and December corn was up 30½ cents to settle at $7.20½.
Dayton, Ohio Cargill is paying $7.85 for corn, 12 over the July futures, which is a 2 cent firmer basis than a week ago. Their fall delivery basis is steady at 30 under the December futures.
Poet at Iowa Falls is paying $8.13 for corn, 40 over the July futures, which is a 13 cent firmer basis for the week. Their fall 2022 delivery basis is steady at 30 under the December futures.
The CFTC’s Commitment of Traders Report (COT) is issued every Friday afternoon. It reports open interest as of the close of business the previous Tuesday.
The big spec funds cut 8,074 contracts from their corn position to leave them net long 184,445 contracts of corn. The index funds cut 9,333 contracts from their position to leave them net long 457,765 contracts of corn.
Corn open interest increased by 4,735 contracts to 2,217,675 contracts.
Eastern Corn Belt ethanol crush margin is $2.44 today compared to $2.36 last week and $1.20 a year ago. The price of corn subtracted from the value of processed products = ethanol crush margin.
Soybeans
July soybeans settled at $17.45½, up 47¾ cents for the week and November beans were up 41¼ cents to settle at $15.68¼.
Sidney, Ohio Cargill is paying $17.77 for beans, 31 over the July futures, which is a 19 cent weaker basis than a week ago. Their fall delivery basis is steady at 20 under the November.
Iowa Falls Cargill is paying $16.22 for beans, $1.24 under the July futures, which is a 20 cent weaker basis than a week ago. Their fall delivery basis is steady at 40 under the November.
The big spec funds cut 6,728 contracts from their position to leave them net long 83,586 contracts of beans. The index funds cut 858 contracts from their position to leave them net long 189,903 contracts of beans.
Soybean open interest increased by 15,985 contracts to 979,103 contracts.
The soybean crush margin is $2.70 today compared to $2.53 last week and $2.72 a year ago. Crush margin = value of the oil and meal extracted from a bushel of beans minus the cost of a bushel of beans.
Wheat
CBOT July soft red winter wheat was up 30¾ cents this week to settle at $10.70¾.
The local elevator is paying $10.46 for new crop wheat, 25 under the July, which is 3 cents firmer basis than a week ago. King Milling in Lowell, Michigan is paying $10.72 for new crop wheat, 1 over the July, which is 2 cents firmer than a week ago.
The big spec funds added 6,484 contracts to their soft red winter wheat (CBOT) position to bring them net short 40,555 contracts. The index funds cut 1,632 contracts from their position to leave them net long 148,365 contracts of wheat.
Soft red winter wheat open interest increased by 8,078 contracts to 462,463 contracts.
KC July wheat was up 41½ cents to settle at $11.62½.
The big spec funds cut 2,815 contracts from their hard red winter wheat position to leave them net long 6,750 contracts. The index funds added 878 contracts to their position to bring them net long 63,770 contracts of hard red winter wheat.
Hard red winter (KC) wheat open interest increased by 130 contracts to 205,338 contracts.
September (U) 2022 spring wheat was 27¾ cents this week to settle at $12.21¼.
The Baltic Dry Bulk Index settled at 2,342, down 291 points for the week.
What you should have noticed:
After two weeks of big gains, the Dow lost it all this week.
The dollar index had a monster week, which makes US exports much more expensive for foreign buyers. A 2% gain in the index is 34 cents on $17 beans. With July futures up 47 cents this week, that makes soybeans at the Gulf 81 cents a bushel higher than last week.
Corn basis firmed despite corn futures sharply higher. That is “big picture” bullish.
Open interest increased in all commodities, yet the big specs and index funds reduced their net positions in everything except the index funds in the HRW wheat by adding a measly 878 contracts. A lot of new money is coming into the commodity markets.
Corn and soybean crush margins continue to be very profitable.
The ocean freight was smartly lower for the third consecutive week.
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