Heat in US and EU pushing prices

In two sessions we have rallied 36 cents in corn and 68 cents in soybeans and in the overnight added another 3 cents in corn and 15 cents in soybeans. The heat wave in the EU has some cutting their corn production to between 55-58 MMT while the USDA is currently at 68 MMT. Then there is the question of what will happen with the grain corridor and while some people involved remain optimistic, we are in the “We will believe it when we see it” camp. There is talk that some think we will see movement in a few days so let’s keep our eyes open. The Fed will announce their next rate increase this afternoon with 75 basis points baked into the markets and if they decide to go with 100 basis points, we will see some selling pressure on commodities. It is unlikely they do that considering the pre-meeting rhetoric centered on 75 basis points. If we get back over 6.25 be ready to add sales or hedges in corn same for 14.40 in soybeans. NFC Grain Comments Options -7.27.22 (1)