The USDA released reports indicating pressure on wheat and corn futures as a result of various factors, including the strengthening US dollar and rising Russian prices. Despite the USDA raising its forecasts for the carryover of various types of wheat, soybean and soybean oil futures were on the rise due to lower forecasts for Brazilian production. However, corn futures experienced fluctuations with higher forecasts for ending stocks leading to a decrease in prices. Additionally, shares of companies such as Walt Disney, Arm, and Hershey advanced, contributing to record-high closes for the DJIA and S&P 500.
Meanwhile, US crude oil prices continued to rise for the fourth consecutive session, reaching $76.22 per barrel; but the US dollar index also closed at a higher rate. US gold futures turned lower as the US dollar strengthened. On February 7th, despite the Dow Jones Industrial Average and the S&P 500 posting record-high closes for a second straight day, wheat complex futures were mixed, and corn prices struck a three-year low. Additionally, US equity markets were higher again, with the US dollar index declining for a second day and US gold futures advancing. Overall, the market experienced significant fluctuation over the week.
In summary, the USDA’s reports revealed pressure on wheat, soybean and soybean oil futures amid various factors, including a strengthened US dollar and increased ending stocks for corn. The rise in US crude oil prices and the decline in the US dollar index are notable developments. Furthermore, US gold futures fluctuated as the US dollar strengthened and weakened. Overall, the market demonstrated high volatility and uncertainty during this time.
