Grains Slide As Markets Search For Support

Article by Michelle Rook on Agweb.com

Grain markets are continuing to slide lower with the falling crude oil market and the idea the Iran war may be ending soon.

However, Darin Newsom, senior market analyst for Barchart, says he thinks the odds of a peace accord with Iran and reopening the Strait of Hormuz are between slim and none.

So while the funds are liquidating positions in the grains to shed some risk, it may not last.

“It makes for nice headlines and as we’ve talked about before these markets are all driven by headlines. The reality is the war isn’t somehow mysteriously all over or miraculously completely over. I’m sure there’s still missiles firing. I’m sure there’s still bombs going off. And so what we’ll find out most likely over the weekend, because that’s when these things tend to happen, is that there is no peace, that there is no ceasefire,” he explains.

So he says the markets will need to adjust again coming out of this weekend.

Currently the crude oil market is buying into the peace talks and grains futures are falling as a result, especially corn and bean oil which are biofuels derivatives.

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