Never trust the Russians!
The parallel agreements signed by Russia and Ukraine with Turkey and the UN to open up a grain corridor to move grain out of Ukraine grains out of their Black Sea ports on Friday put pressure on the corn and wheat market to end the week. Less than a day later Russia fired missiles into Odessa damaging infrastructure used for rail unloading and grain storage. The strikes were over the weekend while the markets were closed so we say a higher open across the grains. But with that said, the move higher was not explosive and a 20 cent higher wheat market is not the reaction the bulls were expecting and maybe they are waiting for more news in the next couple days to get a better handle on the situation going forward. Funds continue to shed length and are now long 125K corn and 88K soybeans and short 6,800 Chicago Wheat. The corn and soybeans are modest longs at best but unless the weather turns very positive production it will be hard to believe they will turn short. Weather-wise some decent rains in areas while some missed out but the forecast looks good for this week and temps do not look to be normal for this time of year. The Dollar index does continue to move lower as well. Expect prices to be supported today by the Ukraine story but if prices turn negative look for major pressure towards last week’s lows. NFC Grain Comments Options -7.25.22