The first half of 2022 was worst first half year for the stock market since 1970; that was 52 years ago. While a major gloom and doom factor, the large decline in the stock market was not a surprise. What was very unusual was there was no short covering (buying to take profit) in the commodities at the end of the week. Even the stock market had a modest rally Friday. Those traders holding short positions better see a lot of crop areas getting rain over this three day weekend with more rain in the forecast or those sold positions will blow-up in their face come Tuesday morning. Yesterday’s mid-day GFS model reduced rains for Illinois, Indiana and Kentucky. It is now July. The world’s largest wheat exporter has started to harvest its largest wheat crop ever. That would be Russia, whose Ag Minister confirmed yesterday the wheat export tax will be lowered. That will put more wheat on the world market.
If you do not know why the above information is bearish wheat and bullish corn and beans, go to:
USDA reported yesterday: