Grain Markets Sell Off Amid Ongoing War Headlines

The grain markets are experiencing a sell-off due to ongoing war headlines in the Black Sea region and Iran. According to Kevin Duling from KD Investors, algorithm traders continue to trade on these headlines despite their skepticism about any significant changes in the status quo.

Duling notes that Russian President Putin's party has won elections, giving him no reason to end the war. Both countries claim they want a ceasefire but continue to strike critical infrastructure and refineries. Wheat exports are down by less than 40% of normal for September, with rerouting efforts not being effective.

Importers are starting to look elsewhere for their grain needs, such as in Sri Lanka, which has been able to secure white wheat supplies. Russia is attempting to refit its fertilizer ports to move grain and has dropped its export tax until the end of the year.

The grain markets are testing key technical support levels: $5.25 for Dec corn, $13 for Nov soybeans, and $7.10 for Dec SRW wheat. Duling believes that a bullish infusion is needed to avoid stalling and potentially rolling over in the market.