Getting Through Deliveries

Steve BruceGrains

Six trading sessions left to leave or roll out of December futures positions prior to first notice day on November 30………..We are open a full session tomorrow and will be closed on Thursday and enjoy a shortened session on Friday…………..Happy Thanksgiving!

 

 

 

It still appears that the market is floundering as end users are hoping for another 10 to 20 cents lower on corn and wheat to take some more coverage while producers are hoping for a 20 cent pop in the basis and/or the board to unload some old and/or new crop before the end of the calendar year………………………..Basis levels still suggest that corn spreads are too narrow and delivery is the best sale for in position elevators while wheat basis levels are firm enough to put the delivery decision as uncertain………………………We’ll know after the close on November 23 if storage rates on Chicago wheat fall starting with the March contract……..As of this writing the CME with WZ/WH at present differences we’ll see rates drop to 2.65 from 3.65 cents/bushel/day starting with the March futures………….Yet, this doesn’t mean that deliveries will be light as the quality issue with vomitoxin levels might keep end users from relying as delivery as a reliable back stop…………………………………………………..

 

 

South American and Australian weather might take more of the trades focus the next few weeks. Also, the long awaited and anticipate G 20 meeting in Buenos Aires begins next week and all are hopeful for good things happening specifically with China…………………………………..The trade is also concerned with the recent fall in crude oil and rise in interest rates and the negative impact on equities…………………Regardless, enjoy the holiday and count your blessings…………………………Happy Thanksgiving!

 

 

 

 

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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Steve Bruce


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