Good morning,

The grain markets have opened quieter this morning with corn unchanged, soybeans unchanged and wheat down 4.

The U.S. banking system is stabilizing after strong actions from regulators, but further steps to protect bank depositors may be warranted if smaller institutions suffer deposit runs that threaten more contagion, U.S. Treasury Secretary Janet Yellen plans to tell bankers on Tuesday. Surprisingly, the financial markets appeared to have little effect on the grain markets over the past week. Prices were in the process of forming bottoms as the funds had liquidated most of their long corn and soybean oil positions.

Russian President Vladimir Putin and Chinese leader Xi Jinping discussed Beijing’s proposal for a ceasefire in Ukraine during a first day of talks in Moscow and they were meeting again on Tuesday, the Kremlin said.  No progress has been made as Russia stands firm in their position.

Russia laid out its reasoning for only agreeing to a 60-day extension of the Black Sea grain export deal, looking for the restoration of access to the SWIFT financial system for the country’s agriculture bank, along with the resumption of farm machinery supplies and the unblocking of foreign ag assets. Putin also suggested free grain shipments to African countries, noting that Ukraine exports were prioritizing European destinations. Russia also claims that “no official notifications” were received from the other parties to the deal saying they were against the 60-day term, and Putin followed that up by warning that Russia could drop the grain deal when the 60 days ended.

The USDA reported a two-point increase in Kansas winter wheat ratings this week, from 17% to 19% good/excellent, with number two acreage state Texas up from 17% to 23%, while OK fell from 30% to 29% g/ex, and CO fell from 40% to 36% this week. TX corn was 40% planted, up from the 35% 5YA.

Corn seeding is almost complete in LA.  Seeding in MS is 7% complete with AR at 1%.  Progress will be slow as heavy rains have fallen in the South.

Have a Safe Day!


Garry Gard