WEEKLY GRAIN NEWSLETTER

Are we about to enter the Great Grain Robbery of 2023?

I don’t think it is likely, but I do want to ask everyone what their thoughts are on the 12 point proposal that the Chinese laid when they called for a cease-fire in Ukraine with point 9 being facilitating grain exports.

The grain market reaction that led to wheat selling off around 60 cents in just a couple of days reminds me of the “Great Grain Robbery”. It also reminds me and makes me scratch my head anytime either the Chinese or the Russians make some sort of headline. Historically when either one of them says something that makes major headlines you see their actions doing something much different.

So don’t be surprised at all if the Chinese just stated this headline to once again try to buy grain a little cheaper.

If that isn’t the purpose, then watch out. Because the other thing that they are saying is you two have to stop fighting because if you don’t where we will be able to get grain from. How will we fill our demand?

Either way, as much as one hates the price action we saw this week in corn and in particular wheat, realize that behind the headlines that caused action might be something just as positive in the weeks and months to come.

Keep in mind that one of the markets that relies heavily on the Chinese demand is the cotton market. On Friday it posted a nice reversal that could easily spillover some support to our other markets.

Why was cotton up so strong? Export sales came in at a marketing year high. Pork sales were also at a 2 month high. What do those two say about Chinese demand?