MarketEdge PM Comments

May 03, 2023

(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.

Read More News

May 31, 2023
As May wraps up, grains came back from their double digit down earlier today.
May 31, 2023
​Good Morning.  Corn and soybean futures were sharply lower overnight.
May 30, 2023
Good afternoon, the markets were lower on slightly better rain coverage coming later in June