Markets have bounced after yesterday’s selloff as corn is up 7, soybeans are up 23 and wheat is up 8 to start the month.
The selloff in wheat yesterday was directly related to the beginning of some kind of negotiation to avoid war between Russia and the Ukraine. The EU really does not want this war to escalate as to them it’s lose/lose situation. This selloff pulled corn and soybeans lower in addition to month end positioning as traders took profits.
Russia has amassed more than 100,000 troops near Ukraine’s borders, while denying plans to invade – an action that the United States and its allies have warned would trigger tough sanctions. President Volodymyr Zelenskiy signed a decree on Tuesday to boost Ukraine’s armed forces by 100,000 troops over three years and raise soldiers’ pay, as European leaders lined up to back him in a standoff with Russia. Ukraine’s armed forces currently number about 250,000, compared to Russia’s overall strength of around 900,000. Ukraine said it was working with Poland and Britain to strengthen cooperation “in the context of ongoing Russian aggression”. British Prime Minister Boris Johnson was due to meet Zelenskiy later on Tuesday as part of a Western show of support intended to convince Russian President Vladimir Putin he would pay a high price for any aggression. (Reuters)
The Forecast in South American is for above normal rainfall in Northern Brazil and below in Southern Brazil and Argentina. Excessive rain is forecast for Northern Brazil where they will see above 6 inches in the next week. Light showers are forecast across Southern Brazil and Argentina for .25-1 inch. The pattern holds mostly dry for them in the long-range forecast as well. Many believe we have lost over 30 mmt of production in South American beans already.
Have a Safe Day!