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.

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Steve Bruce


Walsh Trading
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