You have to feed a bull every day and we just didn’t do it today! Despite the weather being “not perfect” in South America we’re still another day closer to a huge crop hitting the market…….On top of that we’ve a lot of beans and corn to move out of temporary storage in the next 6 to 8 weeks…………..Spreads and flat price on beans and corn need some extraordinary interstellar demand to show up to generate the incentive for end users to step up their buying program………………It appears that beans and corn are still a buyer’s market……………………Wheat still appears to have the most solid fundamentals and could be the most likely grain to generate and sustain a rally but, it’ll need corn and beans to stabilize……….Wheat spreads are still very likely to remain firm as the Argentina crop is losing quality and this just continues the same story out of the Black Sea……………Incentive to buy might start happening when the US crops starts breaking dormancy in March………..We’ve abundant moisture and the fewer planted acres might be starting off in solid shape but the situation in last half March through July is what matters………………..The running average of H/K in Chicago is 23% and KC 44% which suggests that storage rates could become cheaper in late February………………President Trump may not be attending the Davos World Summit on January 22 to 25 if the stalemate on the shutdown/shakedown continues which might be a negative as traders might have been looking at that forum as a possible location to announce 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.
Join
My Mailing List
Steve Bruce
Walsh Trading
312 985 0156
888 391 7894 toll free
312 256 0109 fax
[email protected]
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.