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Wheat futures fell on Wednesday due to expectations of increased supply from the United States, while gold prices ticked lower as the U.S. dollar held firm, heaping pressure on the nonyielding asset amid hawkish remarks from Federal Reserve officials.
The USDA released its 13th Crop Progress report of the 2024 growing season on June 24, and according to data, 97% of winter wheat has headed across all the top 18 growing states. This is up from 94% the week prior and ahead of the five-year average of 95%. Furthermore, the USDA says 18% of spring wheat has headed across the top six growing states.
“As of June 23, 97% of the 2024 corn crop in the top 18 corn-growing states has emerged. This is up from 93% the week prior and slightly ahead of the five-year average of 96%,” Successful Farming reported. Soybean planting progress in the top 18 growing states is at 97%, up from 93% the week prior and ahead of the five-year average of 95%, the report said.
Soybean futures, however, remain supported by flooding in the Upper Midwest after heavy rains late last week and over the weekend. The market is weighing the impact of the floods against the moisture’s ability to mitigate the extreme heat seen over the last week, Hightower Report analyst Randy Place told Reuters. Flooding typically does not become bullish for grains markets until traders have had time to see what was lost, he added.
Among precious metals, gold prices ticked lower as investors and traders assessed comments from Governor Michelle Bowman, where she reiterated the need to keep borrowing costs elevated for some time, while San Francisco Federal Reserve President Mary Daly sees more work for higher interest rates to do to slow inflation in the U.S.
The comments follow strong U.S. services data, which also bolstered the case for a more hawkish Fed. “This weighed on gold, which suffers as an asset that doesn’t bear interest,” ANZ analysts said in a note. Other precious metals, including silver and the PGM ticked up.
Elsewhere, U.S. natural gas futures surrendered part of the previous session’s gains on Tuesday, while spot natural gas prices in Texas fell below zero for the first time since May. Meteorologists projected weather across the Lower 48 states would remain hotter than normal through at least July 3, although the heat is expected to be less intense than previously forecast.
European gas prices ticked higher as warmer weather is set to increase power demand for cooling and competition for liquefied natural gas supplies grows.
Recent Commodity Price Movements and A look At Some ETFs
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Energy
- Crude oil (CL1:COM) +0.84% to $81.51.
- Natural Gas (NG1:COM) -1.17% to $2.83.
Metals
Agriculture
- Corn (C_1:COM) -3.59% to $427.09.
- Wheat (W_1:COM) -3.38% to $541.53.
- Soybeans (S_1:COM) +1.17% to $1,176.86.
Commodity ETFs
Gold ETFs:
- SPDR Gold Shares ETF (GLD)
- VanEck Gold Miners ETF (GDX)
- VanEck Junior Gold Miners ETF (GDXJ)
- iShares Gold Trust ETF (IAU)
- Direxion Daily Gold Miners Index Bull 2X Shares ETF (NUGT)
- Sprott Physical Gold Trust (PHYS)
Other Metal ETFs:
- iShares Silver Trust ETF (SLV)
- Sprott Physical Silver Trust (PSLV)
- Global X Silver Miners ETF (SIL)
- U.S. Copper Index Fund, LP ETF (CPER)
- abrdn Physical Palladium Shares ETF (PALL)
Oil ETFs:
- U.S. Oil Fund, LP ETF (USO)
- Invesco DB Oil Fund ETF (DBO)
- U.S. 12 Month Oil Fund, LP ETF (USL)
- U.S. Brent Oil Fund, LP ETF (BNO)
- U.S. Natural Gas Fund, LP ETF (UNG)
- U.S. Gasoline Fund, LP ETF (UGA)
Agriculture ETFs:
- Invesco DB Agriculture Fund ETF (DBA)
- Teucrium Soybean ETF (SOYB)
- Teucrium Wheat ETF (WEAT)
- Teucrium Corn Fund ETF (CORN)