The Corn market turned from higher to lower in the trade today with hopes that there would be some sort of resolution down the line between Russia and Ukraine. There was definitely less volatility in the Corn market today than I have seen over the last couple of weeks. There was also an increase in open interest yesterday after seeing several declines in the previous days. Even with the positive potential on the war, Russia continues to move towards Kyiv and may only be a few days away from an assault. I did see earlier this U.S. Corn ending stocks at 1.440 billion coming in below expectations and definitely below the February number of 1.540 billion. You have wonder how CPI and inflation factors into the mix. I saw a year on year number of 7.9 % and that doesn’t even factor in the increases we have seen recently in energy prices. This is the highest inflationary number we have seen in forty years. The market is going to continue to be very sensitive to news of the war in Ukraine as I have seen some selling pressure in Corn in what to me still feels like a bull market. I am also hearing that Ukraine this coming year will plant less Corn, Sunseed and Rapeseed and plant more Buckwheat and Oats. Look to buy dips in the market especially in the deferred months and continue to watch the Ukraine news very closely.
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