The Dow Jones Industrial Average settled at 32,899.70, up 686.74 points for the week.
Crude oil settled at $120.26, up $5.19 for the week.
The dollar index settled at 102.16, up 0.52 for the week.
Below is corn, soybeans and wheat basis situation this week.
Corn
July corn settled at $7.27, down 50¼ cents for the week and December corn was down 40 cents to settle at $6.90.
Dayton, Ohio Cargill is paying $7.37 for corn, 10 over the July futures, which is a 10 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 $7.54 for corn, 27 over the July futures, which is a steady basis with a week ago. 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 11,977 contracts from their corn position to leave them net long 192,519 contracts of corn. The index funds cut 9,680 contracts from their position to leave them net long 467,100 contracts of corn.
Corn open interest increased by 24,795 contracts to 2,212,940 contracts.
Eastern Corn Belt ethanol crush margin is $2.36 today compared to $2.37 last week and $1.81 a year ago. The price of corn subtracted from the value of processed products = ethanol crush margin.
Soybeans
July soybeans settled at $16.97¾, down 34½ cents for the week and November beans were down 17 cents to settle at $15.27.
Sidney, Ohio Cargill is paying $17.48 for beans, 50 over the July futures, which is a 10 cent firmer basis than a week ago. Their fall delivery basis is 5 cents firmer at 20 under the November.
Iowa Falls Cargill is paying $15.93 for beans, $1.04 under the July futures, which is a 5 cent firmer basis than a week ago. Their fall delivery basis is steady at 40 under the November.
The big spec funds added 292 contracts to their position to bring them net long 90,313 contracts of beans. The index funds added 1,280 contracts to their position to bring them net long 190,760 contracts of beans.
Soybean open interest increased by 30,125 contracts to 963,118 contracts.
The soybean crush margin had not been issued by USDA at press time. 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 down $1.17¼ this week to settle at $10.40.
The local elevator is paying $10.12 for new crop wheat, 28 under the July, which is a cent firmer basis than a week ago. King Milling in Lowell, Michigan is paying $10.39 for new crop wheat, 1 under the July, which is also 3 cents firmer than a week ago.
The big spec funds added 2,493 contracts to their soft red winter wheat (CBOT) position to bring them net short 34,071 contracts. The index funds cut 3,346 contracts from their position to leave them net long 149,997 contracts of wheat.
Soft red winter wheat open interest increased by 692 contracts to 454,385 contracts.
KC July wheat was down $1.14¼ cents to settle at $11.21.
The big spec funds cut 2,806 contracts from their hard red winter wheat position to leave them net long 9,566 contracts. The index funds cut 977 contracts from their position to leave them net long 62,893 contracts of hard red winter wheat.
Hard red winter (KC) wheat open interest increased by 1,453 contracts to 205,209 contracts.
September (U) 2022 spring wheat was down $1.11¼ this week to settle at $11.93½.
The Baltic Dry Bulk Index settled at 2,633, down 300 points for the week.
What you should have noticed:
The Dow had a very strong gain for the second consecutive week.
Look at the 10 cent firmer soybean basis at Sidney, Ohio Cargill after firming 25 cents last week!
Open interest increased in all commodities and all prices were down for the week. That is bearish. This week was the week the market got comfortable that most of the crops did or would get planted, which is always a bearish event. It just came later this year. Do not put much value on the higher open interest and lower prices. For this week, pay more attention that the big spec and index funds were net sellers of every commodity except… Soybeans. Both fund groups added to their long bean positions.
Why were beans down this week?
First of all, compared to the other commodities, beans hardly lower, but lower none the less.
Secondly, July beans lost 31½ of the week’s 34½ cent loss today and November beans lost 14¾ of their 17 cent weekly loss today.
Meanwhile corn was barely lower today, but yet July corn lost 50 cents for the week and December corn lost 40 cents for the week.
What was going on today?
A spread trade is when a trader buys something and sells something else at the same time.
For the past three weeks, July corn settled lower and July soybeans settled higher. Yesterday, July beans were up 39 and July corn was down a penny. Today was nothing more than a profit-taking day for spreaders who had made big bucks being short (sold) corn and long (bought) beans. Today, they bought corn and sold beans to liquidate the spread trade at a profit.
Ocean freight is a little cheaper for the second consecutive week.
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