December Crop Report The USDA releases its December 1 Supply/Demand tomorrow at 11:00 Chicago time! Historically, it’s a sleeper yet, surprises may occur and we treat all government reports as dangerous! But, if one was going into any report with an attitude that there shouldn’t be any surprises….the December report is the report to do it! World unrest continues and we’re looking at Britain, France, Russia, Ukraine and others as the hot spots du jour…………………………..Trade pacts and posturing with China and others has nerves frazzled and traders hoping and praying that solutions are found soon………………………..Until then the market may be focusing on South American weather and things still look conducive for crop development………….we’ve a big bean crop in Brazil and it’s a buyer’s market, at least until planting in the northern hemisphere next April and May………………………………. The recent price action in equities might change the Federal Reserve’s policy of quantitative tightening to a more static stage………………….This may have an impact on spreads as we’ve seen comfortable stocks in corn and beans allow for widening…………….The need to move stocks prior to warming temperatures in March and April might push spreads a little wider………………Wheat spreads are another story as Chicago has flattened and a concern over quality might make March as the month to own…………………….. The mechanics of funds and high frequency trading might be a reason for the large swings in the outside markets which might serve as a reason for traders to stand aside in the grain markets……..The “blind monsters” are selling rallies rather than buying dips as we’ve seen the past decade which may keep grains from doing anything until we need to deal with harvesting in South American beans and feed grains and plantings in the States…………………enjoy the holidays 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. Join My Mailing List Steve Bruce Walsh Trading 312 985 0156 888 391 7894 toll free 312 256 0109 fax sbruce@walshtrading.com www.walshtrading.com Walsh Trading 53 W Jackson Suite 750 Chicago, Il 60604 Walsh Trading, Inc. is registered as a Guaranteed Introducing Broker with the Commodity Futures Trading Commission and an NFA Member. Futures and options trading involves substantial risk and is not suitable for all investors. Therefore, individuals should carefully consider their financial condition in deciding whether to trade. Option traders should be aware that the exercise of a long option will result in a futures position. The valuation of futures and options may fluctuate, and as a result, clients may lose more than their original investment. PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS. All information, communications, publications, and reports, including this specific material, used and distributed by Walsh Trading, Inc. (“WTI”) shall be construed as a solicitation for entering into a derivatives transaction. WTI does not distribute research reports, employ research analysts, or maintain a research department as defined in CFTC Regulation 1.71.
