Weather, Weather, Weather! Forget Ukraine!

Crop conditions improved last week, which was expected, but after a softer trade yesterday and a lower opening last night the markets turned back higher. The forecast has turned dry, then combine that with low sub-soil moisture and you have real price support under all these markets. If it was not for a tepid demand market for corn, we would still be trading around $6.00 or better but the USDA can continue to cut yield and there will still be plenty of corn unless yield drops into the 160’s. Soybeans on the other hand cannot afford much of a drop in yield with such a tight balance sheet so we could see $14.00 soybeans again soon. I said forget Ukraine in the title but in reality, that is not the case. The markets do not know how to quantify the news due to all the back and forth with the corridor. There were strikes on the Odessa port overnight in retaliation for the bombing of a bridge in Crimea over the weekend. This should be friendly corn and wheat in the short term anyways. For today we will use 4.97 & 13.59 for support and 5.26 & 13.91 as resistance. NFC Grain Comments Options -7.18..23