JUL 01. Who’s stealing Ukraine’s wheat and corn?

Chun09
3 min readJul 2, 2022

The starting point of the third quarter, the second half of the year 2022, and the last trading day before the long weekend in the USA.

US stocks market rallied with the hope of a better third quarter and the expectation of a softer FED stance.

DJ was up 1.1%, S&P 500 index was up 1.1% and the NASDAQ index was up 0.9% today.

Nothing really concrete better news from the market, only some hopes were the motive of today’s last call.

Apple was up 1.6%, MS was up 1.1%, Amazon was up 3.2% and Tesla was up 1.2%.

US Dollar Index was up 0.4% today, ending at 105.12 points.

The yield drop of the 10-year Treasury Note was the main reason for the strong dollar. The yield ended at 2.89% today, dropping 23.3 basis points today.

The crude oil price jumped 2.4%, ending at $111.63 per barrel.

Today’s strong end was based on all already well-known factors such as Libya’s domestic issues, and Norway plants incidents. These factors are not becoming majors but can be used as enough excuse for price rallies.

The copper price of LME dropped once more and hit the lowest price in 17 months period. This is one of the clearest symptoms of world recessions.

In the agricultural world, corn recovered well but wheat and soybeans prices dropped heavily. Inter-market spreading was the main reason for today’s action and funds are retreating from the agricultural market fast.

Chicago Futures Market, Grain/ Oilseeds

Funds long liquidation was the main bearish factor in this market since the second half of June.

Ukraine’s government asked Turkish to hold any Russian operating bulk vessels with stolen grains loaded but are Turkish would do that?

However, we can learn one factor from this news, Russians are exporting stolen grains through the Black Sea channels now and that could be a bearish factor for wheat and corn in near future.

Overall, Northern hemisphere markets are in the middle of the summer weather market and no human can control the weather, let’s wait and see.

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Chun09

Trying every day, engraving what we’ve been through