Bulls need some incentive for end users to panic and bears need some better weather to ease anxiety and it appears that we’re in limbo waiting for South American harvest and field preparation in the northern hemisphere……………………..less filling/tastes great!
Seven weeks until we start getting serious about March future deliveries or the lack thereof and until the gut slot of South American harvest……..There’s no reason to panic on anything as northern hemisphere wheat is still in dormancy and the weather is not extreme.
Spreads on corn and beans remain soft and on the defensive and the lack of USDA stocks, production and supply/demand reports is not a concern as it appears that we’re not going to run out of corn and beans before the onset of harvest of the 2019/2020 crops….Wheat continues to be the grain with the strongest bull potential given the tight world stocks/use ratio and assumption that winter wheat acreage decreased about 3 to 4% last Fall from the 2017/2018 figure of 32.535 million acres……….
Until weather becomes the dominant force it appears that we’ll be looking at the world political figures for movement on trade agreements, monetary and banking policy and on all the NATO/EU/Brexit happenings which might aid or disrupt world trade………….The US is still surviving despite the partial government shutdown…………Weather is easier to predict.
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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