Good morning,
Markets are sharply lower this morning with weekend rains that came in better than expected. Corn is down 16, soybeans down 37 and wheat is down 28 to start the day.
The weekend saw rains move across Northern Illinois and into Indiana and Ohio. More rains are forecast in the Central US this week. Temps back off and a more active weather pattern is developing.
Despite further escalation of the Russian attack on Ukraine’s grain export infrastructure, the market sees the current weather forecast as less threatening to production.
We should start to see some private yield estimates circulate this week ahead of the USDA’s August WASDE which will be released August 11th.
The extreme volatility looks to continue with better weather in the forecast. The Fund position was about even in corn to finish the week, which is a little longer than was being recorded. I am not sure where the market bottoms out, but if the funds decide to take a short position, they could move futures well below $5.
Have a Safe Day!
Garry Gard
920-348-6844
