Good Week For Grains Contract High In Corn Gordy [Listen]
Commodity Broker Gordy Kralovetz with Chiodo Commodities said it was a pretty good week for the grains, especially corn closing near contract highs. It appeared the funds were buying corn, wheat and selling beans. I have never been able to understand why the funds spread the way they do, feeling that if they are buying two commodities they have to sell one. Maybe it is in their guidelines about spreading and limiting risk? It seems to me that would increase their risk? If they were buying corn and wheat, and selling beans, what if corn and wheat went down and beans up?
So, even with the funds seeming to be selling beans they still were about in the middle of the trading range they have been in for quite some time. Plus, domestic and export demand continue to be very good. With the current export pace in a week or two we will be at the USDA export projection for the entire marketing year! Remember the current marketing year ends August 31, 2022. With the weather still a little less than ideal in South America, supply chain issues and shortages all over the world, and the weather delaying the planting season here in the U.S. there sure are a lot of factors in the bulls favor!
Plus, the largest bullish factor is the war in the Ukraine and all the Black Sea Ports shut down. With everything on the bulls side, you have to wonder about the Black Swan event? Click on the link and listen to Gordy talk about the grain and livestock markets last week.