According to the rules stipulated by the CME for variable storage rates we should be looking at the reduction of a penny a month in the storage rate for wheat. This suggests that the cash market for milling quality wheat is a better sale than delivering against the March futures. Yet, not all the stocks in deliverable channels are milling quality as the reality of receiving 2 ppm vomitoxin at a 20 cents discount persists. And, few, if any end users want to risk their brand by using this tainted wheat/ not wheat.
First notice day on Thursday and we traditionally get a surge of activity in the spreads the next few sessions. Basis levels still suggest that corn and bean deliveries could be healthy while wheat could be light.
Everyone is hoping for a trade deal with China soon. There are those in the trade who state that everything comes out in the wash and Chinese purchases from the US just allows other exporters to sell goods to other buyers. Less filling/tastes great!
The National Weather Service is forecasting for the eastern half of the nation to be cooler and drier than normal and the western half of the nation’s midsection to experience cooler and wetter than normal conditions in its most recent 6 to 10 day forecast. The weather starts mattering a lot more as we approach growing season. This forecast might have little impact on price direction.
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.
Join
My Mailing List
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.