The National Weather Service is suggesting that the eastern half of the Heartland has a better chance of keeping the combines rolling in its 6 to 10 day and 8 to 14 day forecasts than the western half of the Heartland……………………………Harvest is still foremost on our minds and we are hearing of a few reports of less than stellar yields on corn and beans from Iowa producers yet, they are the exception as most other areas continue to report mainly more than excellent results……………………………..No one can tell if the USDA will report the trend of better than expected yields in its report next Thursday yet we continue to see basis levels on the defensive which suggests that farmers are not lying when they are saying that they’ve been blessed with bushels this Fall…………………………………………………….
Wheat remains concerned over Russian/European and Australian production as quality is becoming a talking point by importers with Black Sea origin………………………..Poorer quality wheat finds itself going into feed channels yet, the movement of feed quality wheat typically is short term bearish and then when the milling community needs quality the basis and spreads do the necessary work…………………..The Plains in the USA have been relieved with more moisture which may have slowed seeding a little yet moisture is always welcome and we still contend that acreage might increase this Fall climbing. perhaps, 2 million acres which will bring us back to the amount that we planted in 2016……………………………..The incentive is still present as corn/wheat is still wide as measured against historic standards……………………………………………….
The skuddlebutt amongst some crusty old time grain traders is that we’re too cheap to sell yet, no urgency to buy…………………………………………It’s not right to say that all the hubbub in Washington is a welcome diversion given the negative tone of the continuing soap operas and kabuki theater of the absurd but, we are still hoping for positive trade news to come out of DC soon…. And if it pertains to China there might be a positive reaction specifically in the soy complex………………………………So, we continue to listen and look to DC for any hints of an agreement………………………………………………..
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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