Markets are sharply lower to open the day with wheat down 44, corn down 11 and soybeans down 6. Weakness in the wheat market is leading the drop with comments from Russian President Putin indicating that he would be willing to help open corridors for Ukrainian wheat exports to leave the Black Sea.
Ukraine on Friday estimated a 38% drop in the country’s grain production this season, to 66 million tones. Wheat is projected 44% lower and corn 35% lower from 2021. The Ag Ministry reported the 2022 spring planting is almost complete with acreage 22% lower than last season.
The northwest corn belt continues to get crushed by heavy rains with a cold extended forecast in Minnesota and the Dakotas into mid-June.
Today’s market action is a good reminder that the rallies like we saw on Friday are great selling opportunities. Supply and Demand is constantly changing with US corn and soybean prices at current levels we are not competitive in the world market and will struggle to move enough grain to create a supply issue this year.
Be sure to get your old and new crop firm offers in with your buyers so that any opportunities that arise are not missed.
Have a Safe Day!