Oil challenges 120 overnight before tumbling back to near 100. All eyes were on oil prices on Sunday evening as prices exploded through $100 level and climbed into the evening, tagging just shy of 120 before midnight. It was around that time when the G-7 leaders convened a phone meeting where they would work on…
Major development for global energy flows. The U.S. is stepping in to keep oil moving through the Strait of Hormuz.
Hedge Recommendation fills overnight Made a 10% old crop soybean sale on the May contract at 1192.Made a 25% old crop sale of Corn at 468 on the July contract.Made a new crop soybean 15% sale at 1144 November contract.Sold 35% of all crop winter wheat in Kansas City at 607.We are pennies away on…
Energy and fertilizer values force grains higher overnight. Grain futures pushed higher again in the night session, following a resurgence in crude oil prices overnight, as the White House’s plan to help stem oil prices was pulled off the table. This has crude oil pushing to the $87 range, which hasn’t been seen since 2022….
Hedge recommendation: Recommend buying the August short-dated new crop 11.00 put at $0.28 The recommendation is on 50% production. Per the newsletter, this option expires on July 24 and covers 2 acreage crop reports, spring planting, and early summer weather. If the option expires worthless, this implies the current values could be much higher, allowing…
The grain trade recovers from early-week selling. Corn, soybeans, and wheat moved higher during overnight trade as new buying interest entered the market. Outside markets have begun to stabilize following the initial shock of the U.S.-Iran conflict, though most sectors remain firm. Strength in the energy complex is especially supportive for agriculture through its connection…
Grain markets are softening as calm returns to the energy markets. Grain futures are softening across the board this morning as the crude oil market, though elevated, is showing a sense of calm. A conversation late yesterday from the administration is that they are considering insuring and escorting vehicles through the Straits of Hormuz, which…
Turnaround Tuesday is right on time. Grain futures are higher this morning, as we said in yesterday afternoon’s newsletter, a turnaround on Tuesday was likely. Despite yesterday’s selling, Friday’s lows were never exceeded, so yesterday became a higher high with a higher low on the daily bar charts. Taking a chance in the Strait of…
Geopolitics drive overnight volatility. A sharply higher start welcomed the first trading day of the month for grain futures, as the outside markets of energy and metals provided supporting opening, more specifically, soybean oil. Immediately after the opening, hedge selling hit corn, wheat, and soybeans. By the end of the morning session, wheat showed mixed…
Weekly and monthly chart gains in the grain complex today look potentially impressive. That is, if the day selling vigilantes lose their influence today. Grain futures found follow-through buying last night as we roll into the end of the month. Wheat futures led the overnight strength, recapturing the bulk of their losses on the week…
