Geo Politics again. and backward soy
Monday, April 24, 2023 at 4:41:59 p.m. UTC
Top 3 – Things to Watch this week:
1. Global political woes. China has canceled some corn cargos and Russia is again threating to pull out of the grain shipment deal. Seems like a lot of the boy who cried wolf.
2. New crop Soybeans and Canola are all backward markets. Meaning that the front months are higher than the back months. The market is not paying you to store.
3. Weather front is all about seeding progress now. Western Canada is just getting started. Looks as if conditions are not idea. It has been colder than normal.
This week’s Action Item:
Too early for this but here’s an idea. With the market in a backward situation there can be opportunities to do a basis contract for the spring months. Essentially the carry is built into the