Lots to Consider

Steve Bruce General Commentary Leave a Comment

                                We are approaching parity in the central Heartland with wheat/corn. Remember 60 pounds of wheat per bushels and only 56 pounds of corn. Grain consuming units like turkeys and chickens respond better to wheat than cattle and hogs but if wheat starts having some quality issues and gets discounted then it’s always easier to work it into most rations for most grain consuming units. The World is enjoying a potential  production glut with wheat as continental Europe looks great as does India and other Middle East and Western Asia producers. Toledo lost the ability to deliver corn yet, 2 ppm vomitoxin wheat at a 20 cent discount might make wheat/unwheat deliverable stocks attractive to the Southeastern poultry market in July/August/September.  Deep thoughts!

                                If an army travels on its stomach then China may be staying close to home if it follows through on threats to curtail purchases of proteins and feed from the US. Some are saying that nefarious players have been pushing grains down to contaminate the present administrations standing with the farm community while others are saying that excellent production in all grains and oilseeds  in South America  has been more of a factor in the price slide. Indications that there may be $15 billion in aid made available to the agricultural community may cushion the impact of China shunning our markets. Yet, we still have to deal with the abundant near term stocks of beans, corn and wheat. Spreads could remain unexciting for the near term.

                                Flat price remains headline driven but, the undercurrent of problematic weather remains. Funds are short and farmers are long and the showdown comes in wheat at harvest and we’re a month away there and in corn the fight might begin during pollination and this is going to be very staggered this year. Beans will have to go through an August of 100 degrees plus with little to no moisture  to  have any sort of yield loss. I’m kidding but, beans are a very hardy plant and can withstand very harsh conditions, except a hard freeze in early September!                                                                

                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

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.

Leave a Reply

Your email address will not be published. Required fields are marked *