Key facts
- New crop corn prices are lower than before the war started.
- Fertilizer and diesel costs are higher than before the war.
- The current market conditions present interesting risk/reward setups.
Wheat futures saw a rise driven by a 12% increase in shipments and anticipated import growth from Brazil and Argentina. Conversely, corn futures declined as investors trimmed 87,000 long contracts, despite sales outpacing last year. Soybean futures traded sideways amidst Middle East tensions. A new observation highlights that new crop corn prices are currently lower than pre-war levels, despite significantly higher fertilizer and diesel costs, indicating potential risk/reward setups.