[Listen] Gordy Ag Market Recap Wheat Hammered
It was just a week ago that beans were flirting with all time highs, now we are about 80 cents off those highs. Gordy Kralovetz with Chiodo Commodities said the beans still had kind of a neutral week. Soybean meal and corn were kind of attempting a breakout to the upside until closing lower on Friday. There may have been quite a lot of spillover pressure from the wheat market. Gordy said the wheat market "just got hammered" closing down around 40 cents a bushel.
It did seem a little unusual that corn and beans struggled Friday going into a long hot holiday weekend? It was almost like a 4th of July weekend a couple weeks early with this being the Juneteenth Federal Holiday? Remember the grain markets will reopen this evening at 7:00 for the overnight session. The forecast was sure accurate as temperatures in Southern Minnesota were in the upper 90"s over the weekend and today.
Gordy said all the bearish talk in the wheat market was good harvest weather for the long weekend. You can't argue that hot and dry is not good harvest weather but maybe something else is going on? For example, a Black Swan event? I did hear over the weekend that there are countries that have been supporting the Ukraine after the Russian invasion are growing weary. They are suggesting that the Ukraine let Russia keep part of their country that was Russian speaking people anyway.
Apparently there is a lot of wheat in the Ukraine that would then be available on the world market. There would be a large amount of corn also? There was another rumor making the rounds that the Biden Administration was considering an export ban on all U.S. crude oil, gasoline and diesel fuel. Could they also be considering a ban on agricultural commodities like beans wheat and corn? Click on the link and listen to Gordy talk about the grain and livestock markets last week!