Rail strike averted but river levels dropping
Last week there was a back and forth trade for soybeans while corn broke through longer term support. Soybeans finished slightly higher on the week after rallying early and breaking in the middle while corn hung above support early and broke to finish the week. The commitment of traders report showed modest buying into last Tuesday but there was some obvious selling after that which will be shown in the next report. The government stepped up and signed legislation to avert a rail stoppage this week so agricultural products can continue to move via rail but the river levels on the MS are falling again and barge restrictions have already been put in place due to the lower levels that will keep river freight high and capacity low. The hope was the lower trade in the USD will spur more exports especially in corn but if you can’t get it to the Gulf it does not matter. Some major cities in China have relaxed Covid testing policies that will allow more movement by citizens and more access to areas that required negative daily test before. This likely will boost consuption and may in turn spike sone demand going forward. For today, we will watch 6.45 & 14.35 for support and 6.60 & 14.55 for resistance.