Good morning,

Markets are trying to bounce after yesterday’s selloff as corn is up 12 and soybeans are up 11 to start the day.

Yesterday’s WASDE increased corn and soybean carryout for the 2021/22 crop and corn for the 2022/23 crop as expected. Most traders expected these types of numbers with the increase in acreage we saw in last months report.

2021/22 US Ending Stocks(million bu)

  USDA July 12 Ave. Est. USDA June
Corn 1.510 1.486 1.485
Soybeans 215 210 205


2022/23 US Ending Stocks (million bu)

  USDA July 12 Ave. Est. USDA June
Corn 1.470 1.428 1.400
Soybeans 230 210 280



Ukraine said on Wednesday that a deal to resume grain exports blocked by Russia appeared very close as four-way talks prepared to resume, raising hopes of an end to a standoff that has exposed millions to the risk of starvation.

Ukrainian Foreign Minister Dmytro Kuleba told Spanish newspaper El Pais ahead of the talks in Istanbul between Ukrainian, Russian, Turkish and U.N. officials that Kyiv believed it was now very close to striking a deal for exports to resume.

“We are two steps away from a deal with Russia. We are in the final phase and now everything depends on Russia,” it quoted him as saying. Other participants in the negotiations were more cautious, saying much remained to be agreed. Ukraine expects monthly grain exports to rise by 500,000 tonnes as a result, Deputy Infrastructure Minister Yuriy Vaskov said. Ukraine is also negotiating with Romania and the European Commission about increasing shipments through the Sulina canal, he said. (Reuters)

The market is about halfway trading weather but is mostly trading the high dollar and the Fed’s crusade to lower inflation.  The US Labor Department is expected to release an inflation figure of 8.6-8.8% today.  The bank lending rate is supposed to be increased by .75% later this month.  The Fed probably feels like they are getting what they want with the drop in energy prices.  The high dollar allows the US to buy world products cheaper but will go to expense of exports.



Have a Safe Day!


Garry Gard