Commentary
Global wheat prices continue to slip lower with rallies being sold into yet again. Wheat struggles to follow corn in its recent push higher. Corn may have production issues as good to excellent conditions deteriorate but US wheat has demand issues greater than its own production problems in my opinion. US wheat values remain above Russia and garners little export demand.
In the latest drama, Russia threatened ending the Ukraine Grain Deal again but these threats seemingly come on a daily basis. The market in my opinion is not following the back and forth between the various parties unless there is something actionable that comes forth. In the interim the market seems burnt out from reacting to Black Sea events such as the Kakhovka Dam breach and Putin’s latest threats to close the Black Sea Corridor. Lack of demand amid the absence of a supply side rally has kept managed money sellers on rallies. Therefore, the path of least resistance is lower for now in my opinion especially if corn and beans reverse course and leg lower. No trade recommendations yet.
Trade Ideas
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Risk/Reward
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