The Dow Jones Industrial Average settled at 29,888.78, down 1,504.01 points for the week.
Crude oil settled at $110.48, down $9.99 for the week.
The dollar index settled at 104.65, up 0.45 for the week.
The Baltic Dry Bulk Index settled at 2,578, up 236 points for the week.
Below is corn, soybeans and wheat basis situation this week.
Corn
July corn settled at $7.84½, up 11¼ cents for the week and December corn was up 10½ cents to settle at $7.31.
Dayton, Ohio Cargill is paying $7.85 for corn, 15 over the July futures, which is a 3 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 $8.26 for corn, 42 over the July futures, which is a 2 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 added 7,677 contracts to their corn position to bring them net long 192,123 contracts of corn. The index funds cut 4,138 contracts from their position to leave them net long 453,628 contracts of corn.
Corn open interest decreased by 2,902 contracts to 2,214,773 contracts.
Eastern Corn Belt ethanol crush margin is $2.39 compared to $2.44 last week and $1.36 a year ago. The price of corn subtracted from the value of processed products = ethanol crush margin.
Soybeans
July soybeans settled at $17.02, down 43½ cents for the week and November beans were down 30¾ cents to settle at $15.37½.
Sidney, Ohio Cargill is paying $17.27 for beans, 25 over the July futures, which is a 6 cent weaker basis than a week ago. Their fall delivery basis is steady at 20 under the November.
Iowa Falls Cargill is paying $15.82 for beans, $1.20 under the July futures, which is a 4 cent firmer basis than a week ago. Their fall delivery basis is steady at 40 under the November.
The big spec funds cut 5,955 contracts from their position to leave them net long 77,630 contracts of beans. The index funds added 8,721 contracts to their position to bring them net long 198,624 contracts of beans.
Soybean open interest decreased by 7,677 contracts to 971,426 contracts.
The soybean crush margin is $2.31 compared to $2.70 last week and $2.92 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 down 36½ cents this week to settle at $10.34¼.
The local elevator is paying $10.07 for new crop wheat, 27 under the July, which is 2 cents weaker basis than a week ago. King Milling in Lowell, Michigan is paying $10.34 for new crop wheat, even with July, which is 1 cent weaker than a week ago.
The big spec funds added 689 contracts to their soft red winter wheat (CBOT) position to bring them net short 41,243 contracts. The index funds cut 2,644 contracts from their position to leave them net long 145,720 contracts of wheat.
Soft red winter wheat open interest increased by 3,288 contracts to 465,751 contracts.
KC July wheat was down 57½ cents to settle at $11.05.
The big spec funds cut 1,115 contracts from their hard red winter wheat position to leave them net long 5,635 contracts. The index funds cut 877 contracts from their position to leave them net long 62,894 contracts of hard red winter wheat.
Hard red winter (KC) wheat open interest decreased by 2,615 contracts to 202,723 contracts.
September (U) 2022 spring wheat was down 51¼ cents this week to settle at $11.70.
What you should have noticed:
Another huge weekly loss for the Dow.
The dollar index was smartly firmer again.
Corn basis firmed despite higher corn futures.
Open interest decreased in corn and beans. Traders becoming a bit more cautious as the calendar nears the change from an up to down trend on the seasonal trend for both as well as the June 30th, Actual Acreage Planted and Grain Stocks Reports.
Soft Red Winter Wheat price was smartly lower with higher open interest and both fund groups net sellers for the week. All those factors technical factors combined point to lower prices.
Hard Red Winter Wheat saw both fund groups net sellers for the week as open interest declined. Mixed signal there. Funds net sellers: bearish. Open interest down with price down: A little friendly.
Both corn ethanol and soybean crush were weaker for the week. Corn prices were higher, so not a big deal, but soybean prices were lower and the crush margin was still lower, meaning the products (meal and oil) are losing more value than the beans.
The ocean freight was modestly higher after three modestly down weeks.
Rain Days Update
The Western Corn Belt has 1 less rain days in the 10 day forecast than yesterday and the Eastern Corn Belt has 4 less rain days than yesterday.
Share your market outlook for corn, wheat and beans. The more opinions expressed, the more reliable is the resulting Bullish Consensus results. Bullish Consensus saved the Kennedy fortune. It will help build your fortune if we get enough opinions shared every week.
Vote once a week at: https://www.wrightonthemarket.com/vote