Corn is trading relatively unchanged this morning as news that Ukraine’s attacks against Russia have ramped up offset the news that most of the Corn Belt received significant rains over the weekend.
On Friday, Ukraine attacked a Russian naval ship and then followed that up with attacks on an oil tanker and two bridges leading into Crimea. Russia attacked more Ukrainian grain ports along the Danube River.
Over the weekend, beneficial rains fell in South Dakota, Minnesota, Iowa, Illinois, and Indiana, with more rain forecast over the eastern Corn Belt today.
Friday’s CFTC report showed funds exiting some of their long position by selling 9,862 contracts leaving them net long 16,741 contracts.
Soybeans are sharply lower to begin the day with both soy products lower as well as a result of the beneficial weekend rains.
These August rains could not have come at a better time following the heat and dryness and could really set the crop up with better yields as the crop starts to fill pods.
The prices of soy products have not been falling as much as the prices of soybeans, so crush incentives remain profitable which is good for domestic demand.
Friday’s CFTC report showed funds exiting long positions and selling 26,246 contracts bringing their net long position down to 94,493 contracts.
Wheat is having the most positive reaction to the escalation of fighting between Russia and Ukraine over the weekend with both Chicago and KC wheat higher.
As Ukraine begins to target Russian naval infrastructure near ports, trade may be concerned that Ukraine will target Russian export infrastructure which would shake up the world supply of available wheat.
Russia has said that JP Morgan has stopped processing payments for the Russian Agriculture Bank and Russia is pressuring Washington to step in.
Last week’s CFTC report showed funds adding to their net short position by 10,096 contracts leaving them net short 50,428 contracts.
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