Grain > Commentary > 2-23-2022

2/23/2022

Feb 23, 2022

2/23/2022
Wednesday brought us another incredible day in the markets. Overnight trade was subtle in comparison to the day session. All classes of wheat posted double digit gains on the day with Kansas City wheat leading the way, trading at levels not seen since 2012 and has real potential to trade at, and above, the $10.00 level for the first time since 2008. We really didn't have any new headlines or news to trade today as the market continues to beat the South American weather and Ukraine/Russia conflict drums. The USDA made a sale announcement this morning of 132,000 tonnes of soybeans to China for 2022/23. This market has been on replay since the beginning of the year and there's not much to say about it at this point besides enjoy the ride. Work slow with your new crop sales. With this type of volatility, corn price targets spread apart by 35-50 cents and soybean sales targets staggered by 75 cents or more are not out of the question.

Soybeans took out last year’s high of 1667’2 today, we are now trading at price levels not seen since 2012. The market is currently expressing almost no signs of weakness. If we can manufacture a weekly close above last year’s high, it definitely opens to the door to possibly new all-time highs this year.
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