MarketEdge PM Comments

(Allison Ryan)

The market moved green today, after starting the day down. Wheat was up significantly, dragging other grains with it. July corn closed up 8½, while new crop was up 10¾. Old crop beans were up 6¾, while November was up 5.
 

• Technical buying was spurred today by renewed tension between Russia and Ukraine, pushing some wheat contracts up 7%
• The Black Sea grain deal is set to expire on May 18, unless Russia and Ukraine can come to acceptable terms to extend it
• The Feds raised interest rates another quarter of a percent, which was expected- it’s the tenth hike in a little over a year; this is a sixteen year high
• The extended forecast for much of the Corn Belt is warmer and wetter- will this allow most of the crop to get in by the psychological deadline of the middle of May?
• However, the drought monitor does seem to be extending some- something to keep an eye on as we get further into the growing season
• Other market movers include South America’s safrinha crop, which is in good condition; once that is harvested in June/July, there are concerns about it flooding the market and pushing prices down
• The forty day moving average for old crop corn is around 6.15, while new crop is around 5.50- something to keep an eye on as we look for opportunities to put more sales on the books
• The Dow was slightly higher, crude was down, and the Dollar was softer

 
Have a great evening.