Less rain than expected over the weekend, especially in Iowa and Illinois, along with a warmer drier forecast for later this week put pressure on the grain markets last night.
Many markets around the world are shut down today. The stock markets in Asia are not open until Thursday as they celebrate the Golden Week holiday. In Europe, the stock and commodity markets are closed today for the May Day Holiday.
Now onto the war in Ukraine. Many news sources reported on Sunday that Russian troops in the occupied city of Melitopol have stolen all the equipment estimated to be worth $5 million from a John Deere dealership. They then shipped all the equipment by truck transport north into the Russian farm city of Chechnya. However, after a journey of more than 1,200 kilometers (700 miles) the Russian thieves were unable to start any of the equipment. The dealership was able to track the tractors (no pun intended). They then locked down and totally disabled the high-tech tractors remotely. If you see your local technician at the John Deere dealership, say thanks and make sure he is not kidnapped! This another example of how technology wins over brute strength.
Prices that started out lower in the early trade were hit hard one hour later. Now the key to watch between now and noon is if prices can take out the high or the low posted so far today. Because we are now in delivery on the May contract most of the trade volume has moved out to the July contract.
July corn trading range of 18 cents (note the high at $8.08 ½ and the low at $7.90 ½ with the last trade down 9 cents at $8.09. July CBOT soybeans showing a trading range of 41 cents, (high at $16.88 ¾ low at $16.47) with futures now down 33 cents at $16.52. Wheat futures were lower and are now 5 to 7 cents higher.
In the outside markets crude oil is down $3.50 per barrel, the U.S. stock market is slightly higher and livestock futures steady to lower.
About the Author: Al Kluis has been a commodity advisor and broker since 1976. Kluis is an introducing broker with Wedbush Futures and writes a column, Your Profit, which appears in every issue of Successful Farming magazine. Kluis has published two books on commodities trading and is commonly quoted in major publications including the Wall Street Journal. He is also a featured speaker at commodity conferences nationwide. Kluis is a frequent market analyst for the Linder Farm Radio News Network. A Minnesota farm boy, Kluis was awarded his degree in ag economics from the University of Minnesota in 1974, after which he was executive director of the Minnesota Soybean Association before entering the markets full-time. His family still farms in southwest Minnesota, and Kluis enjoys helping with fieldwork when the markets allow.
