Thanksgiving/Christmas/New Year’s Day are here and now and we are in official holiday mode next week………………………………..Grains are closed on Thursday and close early on Friday…………………………………………………………………..Liquidation and roll over of December futures might be the focus of the market the next few sessions as first notice day is November 30……………………………Trade talk is that we might anticipate healthy corn deliveries and lighter wheat deliveries…………………………..Harvest is in its final stage for corn and beans and winter wheat seeding has reached the date where the odds of getting a decent yield is gone…………………..We are in the Holiday Zone…………………………………………
Grains could start focusing on southern hemisphere weather and outside markets for price direction and as of this writing there are no major concerns in Argentina and Brazil………………..Yet, that can change as the El Nino cheerleaders are pointing to shorelines of dead crabs in California, volcanic activity near Terra del Fuego, lemming runs in Norway and Washington, and having the moon in the seventh house gobbledygook as reasons to be concerned…………………………………
In my opinion, we are in a holding pattern waiting for fresh news……………………..Twenty cents down in corn and wheat might attract a lot of end user buying interest while rallies might shake out a little corn and beans as space is still an issue and wise warehousemen will be happy to reward any basis pops with lots of bushels as Spring will be coming just as fast as the holidays snuck up on us……………………..This should keep corn and bean spreads on the defensive through March and then any tightening might depend on the southern hemisphere crops…………………. The CME might recalculate daily wheat storage charges if the WZ/WH does not make a massive bear charge next week as November 23 is the decision date………………………..Please remember that storage rates will increase for corn beginning with the December 2019 contract and for beans with the November 2019 contract…..
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.
Steve Bruce
Walsh Trading
312 985 0156
888 391 7894 toll free
312 256 0109 fax
sbruce@walshtrading.com
www.walshtrading.com
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.