Markets are lower to start the day with corn down 8 and soybeans unchanged.
The CPI numbers came out yesterday and show that core inflation is still rising, and more interest rate hikes are in the cards from the Feds. The DOW reacted by selling off over 1000 points. Corn is tightly connected to energy and economic news and needs good activity to rally or hold ground. Grain prices are high as we have had a good rally ahead of harvest. If the economic woes continue, prices will not maintain their current levels and any sales now will look very good. Make sure you protect yourself by locking in new crop sales for this year’s crop. I would also suggest looking at making sales for the 2023 crop. We are near $6, which may not seem great compared to this past year but may look much different when we get there.
Sources reported that multiple U.S. railroads will halt shipments of crops or fertilizers today, a day ahead the potential railway strike; railroads have until a minute after midnight on Friday to reach a deal with 60,000 union workers. The Federal government is “looking into it”, still holding the ability to avert a strike; there is also reports from the Union side that the two sides are “not that far apart” in their negotiations overpay and attendance policies.
The forecast for US weather is clearing out after recent rains. Most of the Central US will be dry over the next 10 days. Gulf states will be dry, and harvest will move forward. Temps will be warm as a ridge is setting up out West again. Maturity for crops will speed up as we will see a lot of mid 80’s in the next week.
Have a Safe Day!