Watch and Wait on Weather

Steve Bruce General Commentary Leave a Comment

                                                The dog days of Summer are here!

                                                The next big event is the crop report on August 12 which, we hope, will be given revised acreage figures and our first surveyed yield estimate for corn and beans. After everything we’ve been dealt by the USDA the past few months there’s not a lot of confidence that there won’t be a surprise, or two!

                                                It’s still weather! Both domestic and international and we’ve had problems with corn and beans here and Europe{that includes Russia, Ukraine, Belarus, Lithuania, Latvia, Estonia. Poland(Europe is west of the Urals/East of Iceland)} has had problems with wheat given the record heat earlier this month.  There’s a lot of hurt which still can happen this year as some weather forecasters are getting ahead of the curve and calling for an early frost.  That would be a catastrophe! Hence we should keep a frost premium through early September .

                                                Spreads could remain soft as old crop stocks in everything are ample! Any problems with wheat quality may resurface against the March deliveries as there appears to be enough decent quality to satisfy the domestic market through the winter.  South America has been blessed with great corn and bean crops and we are carrying over substantial corn numbers into the 2019/20120 harvest. It appears that CZ over 460 is high enough for the time being! Watch and wait! But CZ under 425, prior to the  August report might attract some end user interest .                      

                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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