Bull markets need to be fed every day!
The cupboards appear to be bare, today!!!
The USDA may change that tomorrow at 11:00 with its release of the October 1 Production estimates and Supply/Demand projections. Analysts and traders have been suggesting that we might see a small increase in corn and bean yields, domestic carryover and international carryover……………… Winter Wheat doesn’t see any fresh production or acreage figures until January 2019 but carryover estimates are anticipated to be a little higher than previous months tomorrow………………..
A lot of harvest and seeding remains to be complete and we are still very concerned with weather conditions. As of Monday, we only had 34% of the corn crop harvested, 32% of the bean crop harvested and 57% of the winter wheat crop seeded…………………………Wet weather is a blessing in the long run and a hindrance in the short run………….Pasture conditions and top and sub soil levels have been improving with the rain delays……………………………..
Macro influences such as monetary policy and trade pacts remain in the news as well as political posturing ahead of the midterm elections………………………………………..Just like hurricanes, these issues influence us strongly and they are tough to predict and project…………………………Yet, we are near decade lows and we have been conditioned to believe that we will stay on the quantitative tightening path which is deflationary and that international grain trade is suffering because of the posturing for new trade deals……………………….Is the bear news already in the market??……………………………………..It just might take time to spark us out of hibernation…………………………
The information contained on this site is the opinion of the writer and obtained from sources cited
within the commentary. The impact on market prices due to seasonal or market cycles and current news events may already be reflected in current market prices.
Steve Bruce
Walsh Trading
312 985 0156
888 391 7894 toll free
312 256 0109 fax
sbruce@walshtrading.com
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