The grains do not have a real fundamental support heading into the weekend, other than a tight overall supply and demand situation and the upcoming June stocks and acreage reports. Upcoming U.S. corn belt weather should be generally favorable for crop development, and world powers continue to deliver a lot of rhetoric on the Ukraine grain situation, with no real action seen yet.
The wheat complex finished the session sharply lower on more widescale liquidation stemming from the selloff in soybeans/soy oil along with crude as further talks of recession and interest rates are pushing people out of the markets. There is no question that the recent price action is likely to further spook speculators with managed money making a swift exit. Wheat prices are now trading back near levels not seen since the first week of the Russian invasion and will now face a tough road to recovery as few will want to catch the falling knife with severe damage done technically to this market now.
Stories were out there that the Turkish minister was investigating claims of stolen Ukrainian wheat by Russia with Turkey unwilling to allow such grain being delivered to Turkey and of course Russia is denying such claims. The real question is where values go from here after erasing the entirety of the war premium with the US in the middle of harvest.
