- Russia invaded its neighbor and sovereign country Ukraine nearly 18 months ago.
- Since then, US exports of wheat and corn have continued to struggle as the world supply and demand deck was reshuffled.
- While algorithms got involved overnight, the markets are telling us to not overreact to any headlines coming out of Russia.
There’s nothing like getting the work week started off with a bang. The first news I saw Monday morning was a MarketWatch piece with the teaser, “Russia says it’s withdrawing from the Black Sea grain deal”. This wasn’t completely unexpected, as the past couple weeks has heard a growing chorus of voices all singing the same tune, except – of course – yours truly. The melody continues to make Russia killing the deal the ‘why’ to the ‘what’[i] of last week’s explosive rally in corn and Chicago wheat heading into the weekend. I don’t like to play the ”whys guy” game, but a look at some of the other factors moving the market provides us with other possibilities as well.
