Market Update

Russian President Vladimir Putin told reporters Moscow will stay out of the Black Sea Grain Initiative until Western countries meet its demands. Putin met with Turkish President Recep Tayyip Erdogan on Monday in the Black Sea resort town of Sochi to discuss the agreement, which allowed ships hauling agricultural products to traverse the waterway without fear of attack. Russia left the deal in mid-July, saying its demands concerning exports of its own ag products, especially fertilizers, were being ignored by Western countries. 

Still, Russian wheat exports since last year are at record levels. Turkey's Erdogan has been acting as a mediator between Russia and Ukraine since Russian forces began attacking Ukraine in February 2022. He will meet with United Nations Secretary-General Antonio Guterres sometime in September, according to Turkish media reports. He said he is optimistic a deal can be reached as dialogue between Russia, Ukraine, and the United Nations continues. 

The analyst expects crop conditions to decline in today's report. More to follow once that report is released this (Tuesday) afternoon. With the dry weather, there is starting to be an issue with low water levels in the Mississippi River. Barge rates are surging and are up 49% compared to 42% last year. Reports say that the water level is about five and a half feet below normal water levels, and a week from now we could see it eight feet lower than normal. This causes many concerns for moving grains, and fertilizer with the levels being so low. 

Speculators are thinking that the basis may be affected by the issue with the low water levels in the Mississippi River. Commodities could be showing signs of a reset which may be similar to 2013. USDA is making major revisions to the farm income forecast for this current year and wondering where the income will sit for 2024. Analysts are wondering if once harvest starts, and once numbers are heard we may see a rally on soybeans and corn. Speculators are thinking that more farmers will sell soybeans and store corn as currently, soybeans are not at a bad price, and that it may make more sense to store corn.

Crop Progress - Tuesday, September 5th, 2023

GreatLakes Grain Crop Tour Continues!!

Once the crop tour is completed, results will beposted. Just a couple of items that we have been hearing are that there issome white mold in the beans and that most of the corn is still in the milkstage and will need time to reach full maturity.

Followalong on Twitter using the hashtag #GLGTour2023

Learnmore at https://www.greatlakesgrain.com/

Countyyield results will be released at Canada’s Outdoor Farm Show at Woodstock, ON, on September12, 2023.