Highlights
Ukrainian drones struck a third Russian airfield hundreds of kilometers into Russia. The range of the drone attack surprised a lot of people; but just another escalation of the war.
Yesterday, China announced sweeping changes to its COVID policy; the people have more freedom to circulate than any time the past three, yes, three years! That is bullish beans and crude oil as they will be able to get back to work consuming more of everything, but remember, the anticipation of an event will move the market more than confirmation of the event, aka buy the rumor and sell the fact. Soybean traders did buy the rumor, but the crude oil traders did not buy the rumor because they expect a worldwide recession. People do not eat crude oil, but they do eat bean oil and meal (indirectly), even in a recession. This is not a time to be buying soybean futures. Yes, we still think beans will go a couple dollars higher, but not for another seven months unless Brazil’s bean crop gets trashed in January by weather, which is unlikely.