Wheat futures saw mostly upward movement, driven by concerns over dry weather conditions in the Southern Plains, particularly in Kansas, a leading producer of hard red winter wheat. According to the weekly US Drought Monitor released, Western Kansas has experienced a lack of precipitation for over two weeks, heightening worries among traders.
In contrast, soybean futures experienced declines, with the July contract hitting a seven-week low. Pressure stemmed from increased farmer sales in Brazil and generally favorable outlooks for planting in the United States. Similarly, sluggish demand weighed on corn futures, which marked their fourth consecutive session of losses, with the July contract hitting a six-week low.
Closing prices for May contracts were as follows: May corn dropped 3½¢ to $4.26¾ per bushel, Chicago May wheat eased ¼¢ to $5.36¾ per bushel, Kansas City May wheat added 4½¢ to $5.77¼ per bushel, and Minneapolis May wheat rose 5½¢ to $6.38¾ per bushel. Soybean prices saw declines, with May soybeans shedding 15¼¢ to $11.34¼ per bushel, May soybean meal down 70¢ to $338 per ton, and May soybean oil falling 0.88¢ to 44.12¢ per pound.
Meanwhile, the US dollar index continued its upward trend on Thursday, marking its seventh gain in the past eight trading sessions. Investors found support in mixed economic data, suggesting a resilient US economy and potentially delaying expectations of a rate cut by the Federal Reserve until later this year.
In the energy market, US crude oil prices remained mixed, hovering near three-week lows amidst varied domestic economic news and geopolitical factors, including Venezuela’s loss of a key US export license, sanctions on Iran, and easing tension in the Middle East. While the May West Texas Intermediate light, sweet crude future rose 4¢ to $82.73 per barrel, prices for June, July, and August eased.
Despite these trends, persistent tension in the Middle East contributed to gains in US gold futures on Thursday, with the April contract climbing $10.60 to close at $2,382.30 per ounce.
In the equity markets, US stocks showed mixed performance as investors adjusted to the possibility that the Federal Reserve might delay interest rate cuts this year. The Dow Jones Industrial Average added 22.07 points, the Standard & Poor’s 500 dropped 11.09 points, and the Nasdaq Composite fell 81.87 points. These movements reflect ongoing market adjustments amid evolving expectations regarding monetary policy and economic conditions.
