Both corn futures and wheat futures are significantly lower today with the improving prospects for Black Sea grain exports. The outlook with lower grain futures is that the tensions between Russia and Ukraine will ease.
Both leaders in these two countries are making an earnest effort to see to it this problem is resolved as amicably as possible, according to President Putin’s spokesperson. Grain shipments have continued uninterrupted throughout this whole ordeal, and thankfully so since 21% of all wheat exports around the world originate from these two countries.
“I can understand the view of bearish grain (futures) markets if the two countries can reach an agreement, but it’s still a ‘wait and see’ situation until its completely resolved,” said Nicholas Medina, a futures and options specialist for Capital Trading Group in Chicago, sharing his insight regarding the current grain futures situation.
Corn futures and wheat futures trends are both still down with no bottom formation yet in sight for corn futures. Wheat futures appear to be putting in a double-bottom from last month’s low.
ALL COMMENTARY IS CONSIDERED OPINION & VIEWS FROM THE AUTHOR AND NOT A SOLICITATION OF ANY SECURITIES. THE RISK OF LOSS IN TRADING COMMODITY INTERESTS CAN BE SUBSTANTIAL. YOU SHOULD THEREFORE CONSIDER WHETHER SUCH TRADING IS SUITABLE FOR YOU IN LIGHT OF YOUR FINANCIAL CONDITION.