Grain markets ended the week with mixed direction as traders shifted focus and weighed a number of unresolved global factors, according to Mike Zuzolo with Global Commodity Analytics.
Zuzolo said market attention moved away from outside influences as the week progressed.
“We kind of shifted… I think we went away from the crude oil and the outside markets in a big, big way as we got closer to the USDA report,” he said.
He noted worsening drought conditions in key wheat-producing areas have not been fully reflected in prices.
“We’re up to 71% in drought now in Kansas… and the trade did not get the rains that they were expecting,” Zuzolo said.
At the same time, global conflict continues to add uncertainty, particularly in energy markets and broader commodity supply chains.
“This current issue, this current conflict is worse than all three of those combined when it comes to the lost energy and the potential damage we may do in the commodity areas,” he said.
Zuzolo also pointed to strong U.S. export demand for corn, raising questions about current projections.
“We are still the cheapest in the world, and I don’t see any slowdown in this export pace,” he said.
He added that soybeans continue to show relative strength compared to other grains, reinforcing a divide in the market that traders will continue to monitor moving forward.
