Grain Comments 05/26/23 7:59:15 AM|
MAY 26, 2023
Morning Comments :
Good morning. Grains and soybeans are surging higher this morning on optimism regarding negotiations to raise the U.S. debt ceiling and dry weather related buying in front of the 3 day holiday weekend. Outside markets are lending light support – the Dollar Index is weaker and crude oil is 60 to 70 cents/barrel higher at 7:00 AM. CN/CU and SN/SQ are weaker this morning after yesterday’s strong trade. CN/CU is down 5 ¾ cents; SN/SQ is off a penny. President Biden and Representative McCarthy are reported to be finishing the details of a deal that would raise the U.S. government’s debt ceiling. Any deal worked out will have to pass both houses and be signed by the President. Getting the House and Senate to agree on a deal won’t be easy. Weather forecasts have remained consistent all week long in calling for the Midwest to be abnormally dry through at least the first week of June. Monday night’s market could provide some fireworks. Russia says that it will allow the grain export corridor to expire when the current extension expires in July. Otherwise, it is quiet as producers are uninterested sellers and a lot of market participants will either be absent from today’s market, or headed out early. The firmer trade looks like it will probably carry through to today’s close. Have a good Friday.