Markets had some life last night and early this morning with corn up as much as 14 and soybeans as much as 16. The rallies have been limited and corn is currently trading 3 higher and soybeans are 6 higher.
The overnight rally was the result of Ukraine bombing a Russian navel ship in that was carrying grain. This is the first Russian ship that has been hit, which had traders thinking about interruptions of wheat exports.
An OPEC+ ministerial panel which met on Friday made no changes to the group’s current oil output policy after a Saudi decision to extend its voluntary production cut into September helped oil prices rally further.
The panel, called the Joint Ministerial Monitoring Committee, can call for a full meeting of the Organization of the Petroleum Exporting Countries (OPEC) and allies led by Russia, known as OPEC+, if warranted.
Oil prices rose more than 14% in July compared with June, the biggest monthly percentage increase since January last year, as tighter supply and rising demand outweighed concern that interest rate hikes and stubborn inflation could hit economic growth.
Historically August is a low in the markets as there is not a lot of action or news to move things higher. I believe we could still test the December lows around 4.81, but do feel that we will fill the GAP at 5.24 from the end of July.
Have a Safe Weekend!