In today's video, we discussed why corn is refusing to break lower as soybeans and wheat have done over the past month, and how that's tied to the fact the insurance at 85% coverage effectively gives you a $5.00 put in the marketplace, where the only corn is going to be delivered now is presold corn at higher levels. The rest will be stored as the Midwest bins are empty.
The drought in the Plains ensured it by emptying corn that had to be shipped West out of the Midwest.
Soybeans did not enjoy the same protection, as prices are still considerably high on a percentage basis and do not offer the same insurance protection because they are not broken down as much.
We also discussed the ship that left Ukraine with wheat, and calling it a ship really is questionable. It's more of a little boat with a little bit of wheat on it.
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On the date of publication, Eugene Graner did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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