Grain Markets Commentary
Grain is focused on the Black Sea
There was some news that China has asked Russia to not do anything on the Ukraine front before or during the Winter Olympics. This would be the reason for the wheat pull back overnight. Yesterday the Russia/Ukraine conflict continued to drive the corn and wheat markets this week. KC & Chicago wheat added around 16 cents each with both being 30 cents higher at one point yesterday. Corn actually lost a penny in March but that was due to massive spread selling vs May and at one point was 10 cents higher. Soybeans added 4.25 cents as they try to keep pace. South American weather is looking better moving into February but Oil World Magazine is predicting a 3.8 percent drop for the combined soybean production of Brazil, Argentina, Paraguay and Uruguay. The combined total of 186 MMT would be a 4-year low. This would bring exporters to the US Market sooner in the summer and early fall and mean larger exports for the 22/23 marketing year. Today we will watch the overnight lows of 6.15 in March corn and 13.93 in March soybeans for first support.