Bounce in the $ weighing on grains overnight!
Corn and soybeans were higher yesterday as the USD index lost 1.68 yesterday which is more than 4.5 dollars off the new highs from last week. The USD has rebounded almost $1 overnight and both corn and soybeans have given back yesterday’s gains.
Another worry for grains is the low water level in the Mississippi River that has slowed barge traffic to a crawl on the lower end of the waterway. This has caused some exports in the Gulf to pull offers as they can’t sell grain that they are not sure they will be able to get down the river. This will hurt basis at river terminals upriver in the short term but may give producers opportunities later in the marketing season if you have storage. Putin has signed laws officially annexing the 4 regions in Ukraine that passed referendums last week, but Ukraine has taken back portions of those areas. This is raising tensions as Putin has vowed to protect these regions with all means necessary. This could get very supportive wheat and corn if we see more escalation. OPEC+ meets today to vote on production cuts to prop up crude prices. They are looking to cut 1 to 2 million barrels per day. Today, we will be looking at 6.72 & 13.62 for support and 6.92 & 14.02 for resistance. NFC Grain Comments Options -10.5.22 (1)