Grain Markets Commentary
Pull back before Easter?
Grain complex was higher across the board yesterday with double-digit gains for most contracts. Corn put out some new contract highs and soybeans are knocking on the door as well. Putin was quoted that peace talks with Ukraine have hit a dead end. One has to expect he is asking for the world and Ukraine has no choice but to decline his asks. The question we have to ask is how much of the disruption is priced in. At this point market participants must respect the upward trends in these contracts until we see a change but producers need to use these pricing levels to protect their profit margins. Weather remains detrimental to early planting and we expect a pullback in prices once we get some decent planting progress and a deep correction should be bought by end users. Biden announced an emergency waiver to allow the sale of E15 this summer. Since it is an emergency waiver it will likely be looked past by the market as we have huge stocks of ethanol. Watching 7.52 and 16.40 for major support for the May contracts.