My 2 Cents Nov 1/22
- grainguy12
- Nov 1, 2022
- 2 min read
Mondays trade was an interesting one with the announcement from Russia that they were going to withdraw/suspend the grain corridor after a series of drone attacks on the Black Sea Navy. There was a lot of anticipation for just how high will the market run with news like this. On the initial opening Sunday night, the market made a big gap open higher then the day trade got rolling and the market pulled back off the highs but then gained some near the close and had a solid finish. The thing to consider is that this is somewhat different than what we saw earlier in the year as the risk profile is very different. Back in February the Russian crop size was unknown but now the crop size is a known number and values out of Russia are at a major discount to the rest of the world. And those values could continue to slide lower to offset the concerns with sanctions, financing, payments, and an increase in shipping costs from that region.
