The July 2023 edition of the World Agricultural Supply and Demand Estimate (WASDE) was released this week and double-digit losses in corn and soybean futures immediately followed it. However, the right hand the bulls took out on Wednesday following the report was put back in on Thursday, as both markets bounced back erasing the losses from the day prior. A flash sale of Soybeans to Mexico and the potential of one last round of adverse weather through the end of July for corn production was enough to erase the perceived bearishness of the July WASDE report.
From Russia with Love
On Friday, June 23, Russian mercenary leader Evgeny Prigozhin led what was widely described at the time as a coup attempt, with a march on Moscow to challenge the Russian leadership in charge, be it Vladimir Putin or the immediate military commanders beneath him. The coup was called off almost as fast as it had begun and was swept under the rug by the following Saturday night with limited casualties. Questions as to what the repercussions of this event would lead to were thrown a curveball early this week, when it was reported by The New York Times and others that Putin and Prigozhin held a lengthy meeting just five days after the failed coup/mutiny. The results of the meeting are less clear than a dirty martini, but it is safe to say that drama will continue to unfold in the Russia-Ukraine conflict, and the potential for market moving surprises have not all been unwrapped.
Crude Oil Surges Higher
Crude oil futures rallied this week and were able to clear the 200-day moving average, a key indicator for technical traders. The members of OPEC have been verbally resolute in press releases over the last few months to cut oil production to maintain profit margins. Their resolve could be tested in the event crude oil futures are able to post a price above the $80/brl mark, which has been the high end of the trade range for 2023.
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