Corn is down 4 and soybeans are up 7 to start the week.
The Funds are in control of the market, and they have been liquidating corn and bean while added to short wheat. The wheat position is up to 75,000 short the largest in a couple years. There is not much bullish here this morning with regular rains in the early season of South American weather. The Funds have shown little interest in commodities as of late, which looks a lot different than this time last year. Interest rates and the high dollar do not much for a very good market.
Protest have erupted in China due to the lock down of cities. The zero-tolerance policy is hitting a breaking point with the Chinese people as they hit the streets. Public protests are very risky and rare within China, due to the government’s ability to use surveillance video to identify participants. Yet, public unrest has reached the boiling point in some locations. Many Chinese still support President Xi Jinping’s dynamic-zero policy, believing that it is the best way to protect China’s aging population, but those who do not support it are becoming more vocal.
There is nothing bullish in the marketplace right now and most likely won’t be for the remainder of the year unless things escalate between Russia and Ukraine again. Basis levels remain historically firm, but board prices appear to be headed nowhere. Take advantage of current levels to make some winter bin coring sales.
Have a Safe Day.