6/16/2022
Jun 16, 2022
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There is a lot of negativity in the financial markets at the moment as the "recession" is getting thrown around a lot! Is that money leaving the financial markets and flowing into commodities? It sure feels that way, which is normal when fear hits the markets. As I write this the DOW is down 900 points and breaking below 30,000. The S&P 500 and Nasdaq Composite are both in bear market territory, down roughly 23% and 34% from their all-time highs in January and November, respectively. The Dow, meanwhile, is about 19% below its Jan. 5 all-time intraday high.” Crude oil is up over 2 bucks today after trading down over 2 bucks earlier in the day. Things are getting ugly and seem to be getting worse quickly! The good news today is cash corn is $8 once again. Selling picked up dramatically today in old crop corn today, but new crop sales were rather light. Some people want to trade hot and dry weather already, which typically is a bad set up after a wet and cold start to the season. Basis remains strong in corn as the ethanol demand continues to try and lock up bushels until we get to new crop. Those of you with basis on the July futures have until the 29th of June to get them priced or rolled. Also just a reminder there are no markets on Monday as Juneteenth is the new holiday, so we will not buy grain after the close tomorrow.