Grain Markets Hold Steady on Hopes for Peace in Black Sea Region
The grain and energy markets have seen profit taking on hopes for peace in the Black Sea region and between the US and Iran, according to Lane Akre, an economist with Pro Farmer.
Akre notes that President Trump's speech at the U.N. General Assembly has sparked optimism about a potential breakthrough in these conflicts, which has weighed heavily on wheat prices. The wheat market was relatively flat on Tuesday, having given up most of its gains from Monday already.
Corn and soybean markets were also lower, but holding better than wheat due to hopes for more agricultural purchases from China as part of this week's Summit. Funds are still long in these markets, but Akre believes the market needs proof of sales, particularly around the $17 billion of ag goods outside of soybeans.
Akre notes that harvest progress was ahead of expectations at 13% for corn and 12% nationally for soybeans on Monday. However, major delays are occurring in areas with excessive rain, such as parts of eastern Iowa, where basis levels have firmed up.