Corn is unchanged while soybeans and wheat both opened 20 higher this morning.
We have not had a massive liquidation in the corn market for months, but have definitely seen it this week. December corn traded below 7 dollars for the first time in 8 weeks. We have basically wiped out the rallies seen in corn and wheat over the last couple months. We are now back to where it all started in the spring when India announced they would limit exports on wheat.
Ukraine’s grain traders’ union UGA estimated 2022 wheat production at 19.2 MMT, down 42% from last year’s record 33 MMT harvest; corn output is seen at 26.1 MMT, down from 37.6 MMT last season. They expect Ukraine to export 10 MMT of wheat and 15 MMT of corn from the new harvest, assuming export capacity through border crossings in doubled. Meanwhile, the country’s foreign ag ministry said they were working with international partners to create a United Nations-backed mission to bring back grain shipping route, while the U.S. is attempting to help with temporary storage containers and boost overland shipping corridors.
Any rallies to test the recent highs is going to be challenging with the crop progress and favorable forecast we have on the horizon. My advice is to continue to move old crop corn at $7+ levels and put more new crop sales on to get at least 40-45% sold.
Have a Safe Day!