| Ukraine tensions continue to be the main market focus today. Wheat markets have continued to push higher during today, adding to their price premium over corn as buyers move to increase cover amid uncertainty. While there are no reports of current logistical issues in the Black Sea due to tensions or potential conflict in Ukraine, the potential for conflict is driving markets, reacting to the potential, rather than an immediate reality. As wheat markets have been supported, corn and other grain markets have also rebounded. Wheat has the potential to drive corn higher, but with stock markets also falling, Agricultural commodities may once again be an attractive option. Another bullish argument for wheat markets has come from poor US winter wheat crop conditions. Texas winter wheat was reported as 7% good-to-excellent and 71% poor-to-very poor. Kansas came in at 30% good-to-excellent while Oklahoma was 16 good-to-excellent. Nebraska was pegged at 36% good-to-excellent and Colorado was 20% good-to-excellent. Winter wheat areas are forecast to receive only limited precipitation over the course of the next 7 days. |
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