Russia temporarily halted its participation in the deal allowing Ukrainian grain exports from Black Sea ports and then quickly rejoined, creating wild price volatility in the grain markets, especially for wheat. Expect more volatile trade as markets react to each new bit of information in this situation ahead of its Nov. 19 deadline. Most expect Russia to agree to an extension, but it’s likely to go down to the 11th hour. USDA’s Nov. 9 crop reports will feature updated corn and soybean crop estimates, but changes to ending stocks and global production, especially for wheat, could also move markets. The Nov. 8 midterm elections have longer-term policy implications, including for agriculture, based on which party secures control of the Senate and House. On the economic front, the Fed raised interest rates another 75 basis points last week to the highest level since early 2008 – and gave no signs the tightening cycle will end anytime soon. While the Fed statement suggested a possible slowing of the pace of rate increases, Chair Jerome Powell took a more hawkish tone. We cover all of these issues and much more in this week’s newsletter, which you can download here.
Your Pro Farmer newsletter (November 5, 2022) is now available
Access this week’s newsletter here.
