What would Senator Blutarsky do? What happens in Washington???????????????
A new NAFTA appears to be here……………… Agreements with Europe and China may be next………………………Reports of more swine and bird flu incidents in China has reminded us just how precarious world supply/demand is and how it just takes a little jolt to sway sentiment…………………………..The 6 to 10 day weather forecasts by the NWS for the Heartland is cooler and wetter than normal which could impede harvest activity…………………………………Wet weather also renews the reality of getting beans and corn into dry space as soon as possible………………………………It’s never easy for the producer as leaving the crop in the field increases field loss while finding a home means higher storage and drying costs…………………………………………….
Harvest activity might be the major focus of the grain markets the next two weeks………………….and this means watching the weather……………………………………….wheat seeding could be slowed by too much rain yet, I believe, take the moisture when you can and broadcast the seed instead of drilling if necessary…………………………old timers say that rain makes grain and I respect my elders……………………………………………………..
Arguably, end users have been patient waiting for harvest to get farther along before adding length to long term needs……………………………………………The lows made in mid September have been talked about as an area to add to longs and it feels like a game of chicken with end users vying against producers to see who blinks first……………………………..Regardless, the end users might be anxious to extend coverage on timing considerations rather than price……………Once the crop is in the bin, in my opinion, traders will sense that it’ll get more difficult to shake it loose until late January/ February/March when anything stored outside will need to move…………………………….Yet, we are not even at 50% complete with corn and bean harvest as well as winter wheat seeding……………………………Patience has rewarded end users since July and we sense no need for them to lose that stance through the crop report on October 11…………………………………….
Steve Bruce
Walsh Trading
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