The soy remains supported. There may be some changes. The bean oil has exhibited some strength of late. The palm oil market has rallied as well. The demand for veg oils is on the rise. This trend will continue. There at present is ample supply. However, prices may rise further. The meal in my opinion has some things to contend …
Vigilance
John Wooden opined that the gifts of hard work, dedication and discipline are patience and faith and that is just what wheat traders might need right now as all the stars are lining up for a rally but there’s no need to rush it! Typically, we need to feed a bull everyday but this wheat rally feels hesitant as …
Livestock Report
Cash sales disappointed last week, with cattle trading steady at 124.00 on a live basis and dressed at 197.00. It led to a breakdown in futures with the April Live Cattle trading down to support at 125.80, making the low at 125.65. It settled above support at 126.075. A break down below the low could lead to a test of …
Grain Spreads: KC Wheat/Corn
It looks to me as if KC wheat can continue to strengthen over corn in the near term. Corn has a long term bullish story and I see old crop corn contracts gaining vs new crop in the next few months. However, wheat either KC or Chicago contracts can gain against corn and may have a more dire demand story …
March Hard Red Wheat Supply and Demand outside of China
Hard Red Wheat can potentially strengthen further in my opinion, last as of this writing 507. News of positive trade talks with China helps but Wheat overall, separately from China news, can rally with demand from traditional wheat importers out of North Africa and the Middle East. Argentina has issues as well with their Wheat quality helping the bid. Buying …
Focusing on Wheat
The window of opportunity for wheat business is open as the USA might be the most reliable supplier of decent quality until new crop in last half May and June. Make hay while the sun shines! Egypt, Bangladesh and others might be forced to look to the US Gulf for quality hard red wheat But, as corn/wheat approaches $1.50, …
All is Well!
A little suspension of disbelief has to be applied to the words and actions of and by political entities in the US, Britain, France, Singapore, Lithuania, Venezuela……basically, everywhere! We can’t make this stuff up! And price action is influenced by the influential……………We are closed on Monday and price action in grains on Tuesday might be influenced by agreements, weather and …
Grain Spreads: Firm basis amid Weather and Trade Rumors
While US corn and wheat are relatively cheap in the world market versus other major producers, the lack of news amid gov’t shutdowns and trade disputes has kept a lid on price. That was until today as nearby shorts across the grain complex covered positions. Despite earlier news that Russia will not place quotas on grain exports, internal wheat and …
Livestock report
February Live Cattle continued its advance on Wednesday, January 16, 2019. Another new high for the up move was established with futures reaching 127.80. This is just below resistance at 128.10 and forming a hanging man candlestick in the process. This is a potentially bearish candlestick formation. With futures unable to trade above resistance on Wednesday and the bearish candlestick, …
Interesting Times
Some may be looking at the low temperatures forecast in the Central US this weekend as a concern for wheat yet we need to stay frigid for an extended time with the lack of snow cover/moisture to cause any winter kill…………………..Historically, we need to go into dormancy very dry and then get very cold in order to do any …