11/2/2022

As fast as Russia closed the Black Sea corridor, they re-open it just 4 days after the initial announcement over the weekend. This was very negative for the wheat and corn trade today and essentially erased any gains we had made at the beginning of the week. Chicago wheat was hit the hardest, giving up 56 cents on the December contract today. Soybeans traded on their own today, recovering from their overnight lows to finish 4-9 cents higher just on follow-through buying alone. Soybean bids have strengthened recently but have backed off slightly following a large transfer of ownership that's already happened in just a few days. We are still waiting for a big corn story to develop. It appears this year's crop was much better than what was expected and export sales are still soft. Logistics are focused almost solely on the soybean export program right now but there is usually some corn moving at the same time, as well. Currently, there are roughly 35 soybean vessels in the PNW port lineup, all to China, but not a single corn vessel to anyone queued.

Soybean futures are now well into the mid-14’s. I expect a short term correction back around the 1420 area on the January contract before we challenge higher. We have some possible trend-line resistance just above our current price levels before returning to the most recent highs traded in September.