Noemi Blohm

Grain futures are back to the conversation we had a year ago. There are currently nine grain and oilseed commodities in the United States with tight final stocks. Mother Nature was cruel this summer with the oppressive heat and drought. Not just the United States, but the entire Northern Hemisphere was unable to produce bin buster crops due to drought conditions.

Although current market fundamentals are favorable due to low supply, demand has slowly declined as global end users try to use only the bare minimum of what they need as prices are already high. Market prices for corn and soy have been trading in lackluster trading ranges for weeks. The market is waiting for new news to dictate a reason for a price hike or be on the lookout for a black swan that could negatively affect demand for grain and drive prices down. Let’s take a closer look at the corn, soy, and wheat fundamentals as we head into the final months of 2022 and prepare for 2023.

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