Wheat, corn and soybean futures all traded higher in the overnight trade. The coup attempt has traders concerned about Russia’s ability to export wheat. The next deadline for the Black Sea Grain Initiative is coming up in mid-July and Russia has already said it will not renew the agreement. Beyond wheat, the corn and soybean markets are also monitoring the latest weather forecast. Northern Iowa and northern Illinois received rain over the weekend, but there are still large parts of the Cornbelt that have not received any significant moisture. “Buckle up, buttercup, we’ve got a weather market,” was the reaction from Tommy Grisafi, risk management advisor, Advance Trading. The funds were short going into this weather market, resulting in major swings in the marketplace. July options also expired. “Folks are no longer really trading or hedging old crop bushels. If you’ve held an old crop bushel this long, you now have a new crop bushel. As July options come off the board, you’re seeing the basis all over America collapse and you’re seeing extreme volatility.”
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