Commentary
Russia runs a drone attack against Danube River ports overnight and damage a few grain warehouses but the fires that resulted were contained quickly. This comes after Turkey announced on Monday that progress had been made on the grain corridor deal with Putin and Erdogan meeting soon to discuss. The strikes come as Ukraine begins to tout its new safe corridor that allows ships to move along its shore toward Romania, and as it promotes exports out of its Danube River ports. Ukraine also announced this week that it is very close to finalizing a deal to subsidize insurance coverage for shippers willing to use its new safe corridor plan. Despite that wheat had little else to rise on in my view with the drone strikes. Bearish news this week in my opinion was cited yesterday as Russia announced their wheat crop grew to 92.1 million metric tons from 87.6. The USDA had Russian wheat estimates at 85 million. Prices in my view have held steady amid both bearish and bullish headlines. Chicago wheat closed 12 cents higher and are essentially unchanged for the week. Technical levels for remainder of the week have December wheat resistance comes in 6.46 and with a close over 6.56 next. A close over 6.56 and the market could test 6.72 and 6.81. Support is first at 6.32 and then 6.21. A close under 6.21 could see the market test 6.05 and then 5.92.
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