Markets are higher this morning with corn up 5 to start the day with traders looking at long term weather forecasts.
A high-pressure ridge is setting up in the Central US driving rain away from the dome. Temps start to heat up in the Central US but are not that hot. The 10-day forecast is dry in a very large area.
The drought alarms are being sounded by a few market participants. When compared to this week last year parts of the western corn belt (mainly NE, NW IA, KS and parts of MO) are dry. The extreme drought conditions are confined to eastern NE and KS and much less widespread across the western belt. We do have areas that will need to see a more normal rain pattern develop throughout the growing season, but we a long way off from calling this 2012.
Ukraine accused Russia of preventing the flow of grain out of the port of Pivdennyi. Ukrainian officials claim that Russia has not allowed Pivdennyi to receive any ships since May 2nd in retaliation for Russia’s inability to export ammonia via pipeline. Under the recently renewed agreement, the ports of Odesa, Chornomorsk, and Pivdennyi are covered to export food and fertilizer. The port of Pivdennyi is the largest port included in the deal when it comes to export volume. This clear violation of the deal has not been commented on by Russia, but it looks as though they are holding this port hostage unless they can move ammonia via pipeline to the port for export.
Have a Safe Day!