Skinnier Uncle Sam

Steve Bruce General Commentary Leave a Comment

                                We’re another day closer to a new trade agreement with China yet, no one can say when the final provisions are worked out and the papers get signed………………..Optimists are  hopeful that something may be reached before the World Economic Forum in Davos, Switzerland on January 22 to 25………………… Optimists are also hopeful that a border barrier resolution is reached soon and that the partial government shutdown will end by next week…………..Maybe we’ll get the mother of all crop reports on January 18??………..Regardless, trade estimates have corn and bean production slightly lower from November, the same with stocks and carry over and winter wheat acreage about one million acres less than what was seeded in 2017/2018………………….It appears that we still have abundant stocks of corn and beans while wheat may be subject to concerns over quality as Argentina continues to suffer from harvest time rains

                                The trade could remain focused on the weather and Washington for the next few days. Spreads may remain flaccid to bearish for corn and beans as the South American crop is looming and the need to move stocks out of temporary storage intensifies as the weather starts to warm………..Wheat spreads could remain volatile given quality concerns …….We still sense that Kansas City is undervalued to Chicago and anticipate the July contracts to go to even money, at the minimum, prior to the announcement of if and when we release the winter wheat seeding report which was scheduled for January 11………………     

 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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Steve Bruce

                                           
Walsh Trading
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