Market Expects More Supply Chain Disruptions
Massive weekend protests continue against the governments in Iran (human rights), China (covid lock-down) and Brazil (presidential election results). Iran sells crude oil and buys wheat, China buys crude oil and soybeans, Brazil sells corn and soybeans. The market took a negative attitude last evening. It was interesting that crude oil, which starts trading two hours before the CBOT, traded about 20 cents lower for those two hours and then dropped $2 after CBOT opened lower; Dec corn down 3, Dec CBOT wheat down 4, KC Dec wheat down ½, Spring wheat unchanged, Jan soybeans down 8.
Would national unrest decrease domestic food production? Yes, but would China and Iran be able to import more grains and meats?