Commentary
Continued weakness amid a lack of conviction in the grain sector was the theme today with KC wheat leading the way lower down 16 cents, Chicago down 12 cents and Minneapolis down 10. March 24 Corn made new contract lows while beans and meal couldn’t hold any rally and faded late. Better weather in South America where needed rains have arrived in Central Brazil pressured corn and beans in my opinion. Better rain chances have emerged in the winter wheat belt amid China being absent from any flash sale purchases for over a week had funds adding to shorts. We are just not seeing any uptick in Russian and Eastern European wheat offers that follow US futures on demand inspired rallies. One step forward, two steps back in wheat. Corn also simply lacks a story in my view. In fact, bearish headlines continue to pressure. Mexico’s farm lobby and poultry groups are complaining that the shutdown of 2 important rail bridges near El Paso that are important to cross border trade are shut down with no re-opening schedule. US Border Patrol has not given any updates yet as these rail lines are used to facilitate migrants into the US. The Ag groups in Mexico cite its costing them $200 million per day. Mexico is our number one corn buyer, and these rail shutdowns just backs up corn and meal supplies. Will go over technical levels on webinar at 3pm tomorrow along with trade ideas into 2024. Choppy trade could continue through holidays. Sign up below.
Trade Ideas
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Risk/Reward
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