10/10/2022

Wheat was the price leader today with the Chicago and Kansas City boards nearly reaching 70 cents higher shortly after 8:30 this morning.  Minneapolis wheat surged to as much as 56 cents higher on the day.  A weekend of war escalation between Russia and Ukraine was all the excuse money needed to buy.  Wheat sustained the sharply higher trade rather well, able to end the day within 10-12 cents of their high marks.  The spill-over buying flooded into corn and soybeans.  Corn broke to the high side, sending the December contract to trade above $7.00 for the first time since late June.  Trade was unable to hold the 7 handle and closed a couple pennies under.  November soybeans looked ready to break back into the $14.00 range but were sold off swiftly just short of that mark.  Following a solid weekend of harvest, the sharply higher markets made the farmer an active seller today.  Trade expects some fresh numbers in the October WASDE report on Wednesday including further yield cuts to this year's U.S. corn and soybean crops.  Even if realized, we still need to be careful being long-term bullish following today's price action and a friendly report.  Most macro indicators are still predicting large economic recession early in 2023.  Yield reports from our area and around the grain belt have also not been in favor of those hoping for a crop disaster.