Corn is up 10 and soybeans are up 7 to start the day.
Last nights crop conditions showed 87% of the US crop in the dent stage compared to 88% for the five year average and only 5% behind last years record pace. We also received the first update on corn harvested which showed that 7% of the crop has been taken off compared to 8% on average.
Todays market move appears to be following the news out of Russia. Two Russian-controlled regions in eastern Ukraine announced plans to hold referendums on joining Russia later this week and an ally of President Vladimir Putin said the votes would alter the geopolitical landscape in Moscow’s favor forever. Ukraine and the United States have said such referendums would be an illegal sham and have made clear that they and many other countries would not recognize the results. It makes it hard to believe the grain corridor will stay open when Russia is trying to annex territory.
Russia named taking full control of Luhansk and the neighboring province of Donetsk as primary goals of what it called its “special military operation” in Ukraine, alleging that Russian speakers there were being persecuted and even shelled by Ukrainian government forces, something Kyiv denied.
The markets are going to remain range bound and I am not sure we will see the harvest rally that many, including myself are anticipating this year. With the funds already long 200,000 corn contracts and the economic environment we are in there is going to be limited money to invest in the markets. My advice is to take advantage of the rallies to make sales on new crop corn.
Have a Safe Day!