There’s lots of deliverable wheat around and keeping tabs of receipts and shipments shows that we are not at a pace to have deliverable stocks dwindle to zilch any time soon. Chicago is toting 7.345 million bushels of wheat. Mississippi River Deliverable Houses have 10.417 million bushels. Northwest Ohio locations have 10.065 million bushels. Ohio River facilities have 6.839 million bushels. Saint Louis has 1.862 million bushels. Toledo is bursting with 26.451 million bushels as of February 8! A lot of the projected carryover is ready to hit the streets. That’s a lot of grind for millers to justify standing and taking delivery. Hopefully, end users who really need the quality will learn to work with the issuing deliverable elevators and work things out with peace, love and harmony! Whatever happens in March and May might be a distant memory when we’re into new crop harvest. Traditionally, the WZ/WU sub 12 cents might be an opportunity to bear spread even when storage rates are at their minimum rate.
Corn and beans are still locked into a trading range both flat price and spreads. Input costs for corn are expensive and the skuddlebutt is that there might not be enough acreage planted this Spring…………Do we get a Spring rally to entice the producer into corn production?
A Chinese grain deal might be close yet, China has been buying despite not having a deal. A reaction to a deal might be an overreaction!
Please, remember that we are closed on Monday in celebration of President’s Day!
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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