Markets are mixed to start the day with corn down 4 and soybeans up 20.
Ukraine renewed a call on Thursday for financial sanctions crippling enough to force Moscow to end the war and its officials rushed to evacuate civilians from cities and towns in the east and south pounded by Russian artillery and missiles. The democratic world must stop buying Russian oil and cut off Russian banks from the international finance system, President Volodymyr Zelenskiy said, adding that economic concerns should not come above punishment for civilian killings that the West condemns as war crimes.
Tomorrows USDA Report has traders looking for reduced stocks in US carryout for both corn and beans. Export sales are strong and with the Ukraine and Russia out of the market, most think that more will flow to the US. Switches from China out of the Ukraine could amount to an increase in US purchases at a time when there would usually be almost none as South America takes over Chinese business.
South American crops are expected to shrink a little as well. The USDA probably won’t revise the crop size very much lower, and we did have late season rain move into Argentina and Southern Brazil. How much help it did, is anyone’s guess?
December corn has popped through 7 dollars on the CBOT this week and stopped. The stochastics show overbought conditions and a divergence into the high says traders should be selling off. The crop report could produce a higher high, which would make sales even more likely tomorrow. If you want to sell any corn, today and tomorrow would be good days to sell some 7-dollar corn. Old crop futures have been trading around 7.50 for months, so that’s probably the most upside you would see against new crop futures. I just don’t know how much higher prices really need to go, if at all. Remember how hard it was to get to these prices and what it took to get here. Selling off from these levels is going to be a lot easier.
Have a Safe Day!