Lots of Uncertainty

Top 3 – Things To Think About This Week:

1. Ukraine seeding window is now open. Need to watch and see how much of crop is seeded. Note: Wheat is mostly winter wheat.

2. Convergence of futures. This means that old crop futures will eventually match new crop. Either November canola will rally to match July or July will drop to meet November. Growing season will be the main deciding factor.

3. Na lina is expected to continue this year. Also, expect a wavy jet stream. This means weather patterns are less predicable and more extreme.

This week’s Action Item:

Figure out how much new crop grain you want to have priced by June 1. Is it 5% or 50%. It’s important to have that figured out before the market does something wild.

This Week’s Chart:

Soybean oil is at all time high. Likely to stay at high levels for the near future at least until North American crops have indication of crop size.

Links to articles:

https://www.farmprogress.com/commentary/la-nia-could-spark-fire-already-overheated-markets