9/1/2022
Sep 01, 2022
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Today was an ugly day in the markets once again. Harvest is rapidly approaching and it feels like the markets are aware of that. Wheat was the dog today down 40 in Minneapolis and 60 in Kansas City. Equities started the day lower again, but have since clawed their way back to near unchanged on the Dow. Crude oil was down over $3 today as that market is nearing support at the $85 area. It might be poised to finally break below support? The US dollar was sharply higher today, up a full point and making new highs once again at almost 110. Thats not a good sign for exports. The USDA export sales announcements won't happen for a couple weeks as their system remains down. I still want to stress that if you have HTA's you want to be thinking about rolling them out as carries might be non-existent this year. For corn, 7 cents to the march and 9 cents to the may are my targets. It might take early harvest pressure to get there, so have orders working. Depending on where final yields end up, it feels like some areas are going to be short corn. Mainly the Nebraska and Kansas areas. There is already talk of northern corn going south into feeder markets this year and we haven't even started harvest. That has not happened for a few years and tends to change the game a bit. There is never a dull moment in the grain business.