From now on we will live in a new reality, the Russian economy will be damaged, diplomatic and trade relations with the West will be destroyed, and it looks like Russian resources will now go to China. God knows what will be happening with the world global market and prices. We can only wait and watch.
Ukraine has been completely disconnected from the power systems of the Russian Federation and Belarus; Ukraine is working "offline mode".
The website of the Cabinet of Ministers of Ukraine has been hacked.
Lithuania and Moldova declare a state of emergency.
USA has turned off Russia from SWIFT bank identification system.
The Moscow Stock Exchange has halted trading after losing 35%.
The Dow Jones futures are sharply lower. The New York stock exchange opens at 9:30 New York time.
Ocean shipping has stopped in the Azov Sea, which is the part of the Black Sea bordering Ukraine's southeast coast.
It is reasonable to expect all Ukrainian ports will be barred from exports. That shuts off the most of the Black Sea grain.
Russia and China have been buddying up ever since Biden won the election. The next move to reasonably expect is China to move on Taiwan.
Do not forget 30 plus percent of the natural gas used in Europe comes from Russia. Will they truly sanction Russia?
Don't be selling anything until we get more clarity.
The most a commodity's price can move in one day, up or down, is the daily trading limit.
If a commodity settles limit up or down, the next trading day has expanded limits.
Daily Trading Limits:
Corn 35 cents (expanded 55 cents)
Soybeans 90 cents (expanded $1.35)
Minneapolis Wheat 60 cents (expanded NA)
KC Wheat 50 cents (expanded 75 cents)
Chicago Wheat 50-cents (expanded 75 cents)
As long as any commodity is limit-up, we do not recommend selling any of the commodities.
Wheat locks mimit up, traders cannot get out of short positions. So they buy corn or beans.
Corn locks limit up after wheat does, then beans lock limit up.
The next day, we could see the markets open up the expanded limits. That is the time to sell.
We will do our best to keep you informed of our best recommendations.
All time High Futures prices
Corn $8.49 August 10th, 2012
Soybeans $17.89 September 4th, 2012
Spring wheat $25.00 February 25th, 2008
KC wheat $13.85 February 27, 2008
This morning: Crude oil is at $98.02, up 5.92 The dollar index is at 96.63, up 0.44 July palm oil is at 5888 MYR, up 346 after making new contract high today at 5,931 MYR. Palm oil owns 32% and soybean oil owns 28% world market share. December cotton is at $103.91, up 1.43. The contract high was made February, 10th at $106.36 per cwt. Cotton competes with soybeans and corn for acres. July natural gas is at $4.999, up 0.302. The contract high was $5.121 at February, 2nd, 2022. Natural gas is the primary cost to manufacture nitrogen fertilizer. July ULSD is at $2.7984 per gallon, up 0.1170 after making new contract high today at $2.7984. ULSD stands for Ultra Low Sulfur Diesel.
Broiler egg set was up 4% than the same week a year ago.
Broiler egg hatch was up 1% than the same week a year ago.
Rain Days Update
Rondonópolis, Mato Grosso, in the heart of Brazil's most productive soybean area, received 0.3 inches of rain yesterday; 0.2 inches a year ago and 0.7 inches two years ago (one inch = 24.5 mm). Yesterday's high temperature was 90°F. Day time highs the next ten days will range from 88 to 93°F (100°F = 38°C). Yesterday, in the dry areas of South America: Santa Maria high temperature 96°F with 0 inches rain. Cordoba high temperature 86°F with 0.1 inches rain. Salto high temperature 97°F with 0 inches rain. Total rainfall and temperatures expected in the next ten days: Santa Maria 2.90 inches, 77 to 97°F. Cordoba 2.11 inches, 78 to 84°F. Salto 2.23 inches, 77 to 86°F. The Western Corn Belt has 2 more rain days in the 10 day forecast than yesterday and the Eastern Corn Belt has same number rain days as yesterday.