Storage tightness with beans and corn, first notice day against the November beans, end of the month position squaring, political events and the impact on trade policy and attitudes might be what we will be talking about on Sunday night and Monday morning when we return from the weekend……………………………Of course, most of the air in the room will be spent on the bloviating and positioning ahead of the midterm elections which are to be held on November 6 and then we’ll get another production and supply/demand report on November 8……………………………………………….What the trade might be missing is the importance of the weather in the southern hemisphere as the corn and bean crops develop and wheat harvesting begins in Argentina and escalates in Australia………………
Some analysts have been saying that the recent volatility and weakness in equities might be related to the possibility of a party change in one of the Houses of Congress which might make it harder for the Trump Administration to lessen the implementation of government rules and regulations which some consider to be the reason for the lack of economic growth in the previous administration……………………………. Perceptions and attitudes move markets…………………………………….And, given recent history we might not know the results of the election for a few days…………………………………………………………..It is a very unpleasant fact of life that we have to deal with the subject of politics and I do not know how things end up…………………………………….
The domestic situation with the storage of corn and beans is tight and as we approach the latter third of harvest we might see some forced selling which might keep pressure on the basis and spreads…………………………………………We are unsure of what happens with flat price as we’ve broken the trend of increasing yields in USDA reports…………………………………………………………………….We have heard that yields in the western half of the belt have been great yet not the stellar numbers that we’ve heard of in the eastern half…………………………………..What’s a couple of 100 million bushels of corn between friends?………………………………………………………………..Regardless, we’ve been blessed with great corn and bean crops and comfortable carryover projections could keep end users from chasing any rally…………………………………………………………….Patience might reward the feeders……………………….
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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