10/31/2022

Over the weekend, Russia made an announcement that they would no longer be recognizing the Black Sea safe corridor for exports coming out of Ukraine. The market opened with a bang with most active grain contracts gapping higher. Wheat traded to 45-63 cents higher, corn 20 cents higher, and soybeans 20-25 cents higher. Enthusiasm faded going into sunrise as the headline became less bullish and more confusing after it was reported that 12 loaded vessels had departed Ukraine with no issue. If Ukraine is able to load and ship grain without an agreement from Russia, is an agreement really needed, regardless? The $7.00 mark on December corn appeared to further solidify itself as resistance. Weekly export inspections were average for soybeans with 2.574 million tonnes and disappointing for corn at 422k tonnes. The high price of corn, steep shipping costs, and logistical issues have definitely hurt corn export sales to start this marketing year. Inspections have been running around the second lowest numbers in the past 7 years.

Dec corn opened gap higher Sunday night, putting a 13 cent gap on the chart. Trade came close to filling that gap today with only ½ cent left open. A big bullish headline but corn remains rangebound.