July 20, 2022

Grain futures have been losing ground in the latest three weeks and counting, offering some reprieve for livestock producers who have been contending with high feed costs.

Since June 17th, the December corn futures contract shaved off over $1.50 per bushel, while the most actively traded soybean contract declined by over $2.00 per bushel during the same time period.

The grain complex was under pressure again on Tuesday as traders eyed a potential deal between Ukraine and Russia to resume grain exports through Ukraine’s Black Sea ports.

Grain shipments from the Black Sea region have been blocked since Russia invaded Ukraine in late February, sparking fears of a global food crisis and contributing to the surge in wheat prices. 

Russian President Vladimir Putin said Russia is ready to unblock Ukrainian grain shipments from Black Sea ports. However, Putin wants Western sanctions against Russian grain exports to be lifted.

Putin met with Turkish President Recep Tayyip Erdoğan Tuesday to deliberate resuming grain exports from Ukraine. The 4-way discussion included officials from Russia, Ukraine, Turkey, and the United Nations. 

December corn futures closed 15 ½ cents lower at $5.95 ¼ a bushel on Tuesday. November soybeans ended down 22 cents to $13.58 ¼ a bushel, while the nearby wheat contract rebounded to end slightly firmer at $8.12 ¼ a bushel. 

Corn futures were also pressured by the latest USDA Crop Progress report released Monday. Corn rated in good to excellent conditions was stable at 64% despite the extreme heat impacting much of the country. Dry conditions and heat could potentially affect crop yields.

Nearby corn contracts were last trading 5 cents lower at $5.91 ¾ cents a bushel in early action Wednesday. Soybean futures were down 22 cents to $14.55 ¼ cents while wheat was last up 9 ½ to $8.21 ¾ cents a bushel.

Photo Credit: Vitalii Stock / Shutterstock.com 

Courtney Shum
Urner Barry
1-732-240-5330
cshum@urnerbarry.com