Wheat was sharply lower yesterday with the signing of the Ukraine grain export deal which will be mostly wheat. Corn was lower on perceived improved weather, lower wheat and the possibility of some Ukrainian old crop corn getting shipped. The Ukrainian ports included in the deal are Odessa, Chernomorsk and Yuzhny.
Kevin Duling of KDK Investors said if this agreement was a new car, yes, it looks great, but under the hood there is no engine and no transmission. Kevin is correct. Nobody knows who is going to clear the mines, who will provide the military escorts and whether or not insurance and shipping companies will be willing to take the risk. Nor does anyone know if Russia truly will allow Ukraine, the enemy they are trying to kill before the Ukrainians kill them, will truly allow Ukraine to sell wheat on the world marketplace to compete with their own wheat. Is Putin that kind of guy? Is anybody that kind of guy?