It appears that we’re flushing out some speculative longs in wheat and oats while corn and beans haven’t been as nasty to the downside as the only longs there are farmers holding the physical and end users are patiently awaiting a final flurry of selling near the end of harvest when some forced selling because of storage tightness might occur…………………………………………….It feels as though we are in a “bunker” mode through the election in twelve days as we are in strange days, indeed!
The market appears to be very cautious as we approach first notice day against the November bean contract………………………………Traders might be sensing heavy deliveries given spreads at current differences……………………….. There are really no weather catastrophes in major grain producing countries at the moment and with harvest pressure continuing in corn and beans there appears to be no urgency to chase a rally in any grain……………………………………….
Outside markets remain a concern! Yet, we are in value areas in all grains and if we go down there will be a battle at every tick as end users might be willing to extend coverage……………………Rallies, if they occur might see producer selling interest in the 2019 crops at 410 CT and 930 SS…………………Wheat needs to rally a lot to encounter any new crop hedging interest……………..
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
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