Space Race?

Is there more upside potential than downside risk with corn, beans, and wheat at present prices? Funds are short with a big edge and farmers are long with storage space still tight. Corn planting is a problem and we might not see the acreage suggested by the USDA in the prospective plantings report. The loss in corn acreage might translate to more beans planted and that might just add to the ample stocks on hand in the States and South America. We are getting closer to winter wheat harvest and we might anticipate more downside risk in basis levels than board prices. Producers tend to let go of wheat off the combine and millers and warehousemen know how to ratchet down the basis once they get comfortable with nearby coverage. Does harvest hedge selling allow for the funds to exit short positions?

The recent 6 to 10 day forecast for the Heartland is calling for much warmer and slightly wetter which might bring about a slightly muted friendly attitude for corn as planting conditions are still not perfect. It's beneficial for winter wheat development and beans are just waiting to see what happens.

Political and central bank influence on flat price? Who knows what happens today?

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

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.