Love the movie and it’s pertinent to the tension we are experiencing with the final 50% of corn planting and the start of wheat harvest.
Losing corn acres to Mother Nature and the probability of a later corn harvest might make wheat feeding in the Southeast in July/August/September an attractive proposal at present differences. If quality is an issue for wheat this harvest (we are getting to that point in Texas and the Deep South…..nowhere else though) and the discounts get steep then the probability increases! Just another typical year in the grains when the weather takes center stage and extremes like floods and droughts and disease and pests come into play. Funds have been caught leaning to the short side while farmers have been given a second chance to lock in some very slim profits in areas which have been able to plant and are benefiting from the rains.
It’s not rocket science or brain surgery. We rally on wet and break on dry. Tonight’s planting report has been talked about being close to 50% on corn and winter
wheat heading could be a little behind normal yet wheat responds quickly to a little hot and dry. Hard red condition is more of a concern than soft red right now. Spring wheat seeding is anticipated to be over 70%.
Corn and bean spreads might remain on the defensive as transportation problems plug us up and some of that biz gets diverted down to South America and it’s tough to get it back. Wheat spreads could be extremely sensitive to weather concerns and quality issues caused by dampness at harvest. Deep discounts could force it into feed channels.
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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