9/23/2022

The headlines will continue to flow in Ukraine, where Russia will be conducting a “referendum” in four oblasts to see if its residents “want” to annex to Russia. The fighting remains heavy in some of those regions, with Russia only occupying 60 to 65% of some of the claimed territory. The conflict also raises questions about Russia’s willingness to continue allowing grain to move out of Ukrainian ports through the safe corridors. 

The dominant story today was economic weakness and the threat of the onset of a major recession. There wasn’t a new breaking story but more of a consensus in the market. Strength of the dollar weighed on the commodities as the Euro plummeted to 21-year lows and the British Pound dropped to its lowest level since 1985, and the stock market is near two-year lows. 

Futures markets are based on the perception of future demand for a specified price. Recessions/Depressions don’t help. And its worth noting, unlike 2008, the grains/oilseed sector is strongly integrated into the energy complex with biofuel policy. If the energies go, there is no way the grains and oilseeds can detach themselves. 40% of US corn demand and an equal amount of the bean oil demand base currently goes through the fuel market. In 2008 it was 25% and 15% respectively.

Farmers Coop’s grain team is available for helping develop marketing plans for producers. Call the Hemingford Grain line at 308-487-3325 to discuss current markets and strategies to market your grain.


It’s also a good time to give our Agronomy Department a call to discuss corn seed sales.  308-487-5219 or 308-282-0638.