Down the Rabbit Hole

Steve Bruce General Commentary, Grains Leave a Comment

Soft red wheat appears to be the new golden child in grains. We’ve got Chicago 76 cents over Kansa City in the December contracts, 55 cents over in the July 2020 contract and 30 cents over in the July 2021 contract. Historically, this is unusual and we have to ask the question of whether lower protein wheat which traditionally has a greater yield than the higher proteins has other qualities which makes it more expensive. Or, do we see the fringe areas for example, Matoon, Illinois and which is traditionally corn and beans add some soft red acres this Fall and double crop it with beans next Summer and take advantage of the premium to soft red?? Also, there’s no reason for anyone other than a miller to hold onto soft red as spreads have no carry. We might see another round of movement once the east gets comfortable with corn yields. Regardless, there are spreading opportunities!

The 6 to 10 day forecast is warmer and wetter than normal for the Heartland and this might be considered to be negative to prices and positive for crop development. There’s no urgency to chase corn or beans!

Crop report on the 12th. We always preach the Gospel of going into major crop reports as even and open minded as possible. We’re learning as we go as per how the USDA reflects prevent planting acreage and we might see another surprise on this report.

Join My Mailing List

Steve Bruce

Walsh Trading
312 985 0156
888 391 7894 toll free
312 256 0109 fax

Walsh Trading
53 W Jackson Suite 750
Chicago, Il 60604

Walsh Trading, Inc. is registered as a Guaranteed Introducing Broker with the Commodity Futures Trading Commission and an NFA Member.

Futures and options trading involves substantial risk and is not suitable for all investors. Therefore, individuals should carefully consider their financial condition in deciding whether to trade. Option traders should be aware that the exercise of a long option will result in a futures position. The valuation of futures and options may fluctuate, and as a result, clients may lose more than their original investment. PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS.

All information, communications, publications, and reports, including this specific material, used and distributed by Walsh Trading, Inc. (“WTI”) shall be construed as a solicitation for entering into a derivatives transaction. WTI does not distribute research reports, employ research analysts, or maintain a research department as defined in CFTC Regulation 1.71.

Leave a Reply

Your email address will not be published. Required fields are marked *