Still in a trading range even though we are feeling a little heavy today. It is a “Voice From the Tomb” day on February 22 to buy May and/or July Wheat which is held until May 10. Maybe the financial weight from equities and retail sales weighed on grains today but, it still appears that the grain trade is languishing awaiting fresh input. Too cheap to sell and no urgency to own!
We’re closed on Monday and then the next event is first notice day on the March futures on February 28. Be out of all March positions by the close on February 27 if you do not want to play the delivery game.
Spring, breaking dormancy in wheat and field work and planting in corn and beans can’t come soon enough! Attitudes are sour in the country as prices are too cheap to excite and entice more acres of anything. Bears don’t need to eat every day but bulls do! Without a weather scare or trade deal with China which persuades them to really increase purchases prices might continue to float in a trading range.
Nearby corn/wheat appears to be happy at $1.40. Corn and bean spreads are hypnotically slipping slowly yet surely……….Wheat spreads may have seen their strength ebb as the trade has to choose between the realities of strong basis levels for milling quality stocks against the fear of receiving 2 ppm vomitoxin if they stand for delivery.
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.
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