Almost Half Done

There's still over 50% of the corn and bean crops to harvest and store and it does look like Mother Nature will present the opportunity to make a lot of progress as the 6 to 10 day forecast from the National Weather Service is calling for cooler and drier than normal conditions............................Winter wheat seeding is close to the 5 year average at 65%..........................

Spreads and basis might remain on the defensive for corn and beans as harvest progresses......................I am still a believer that wheat spreads will tighten after we deal with December deliveries as domestic stocks are more than sufficient and wheat will spend the winter in Toledo but, international stocks are forecast by the USDA to be on the light side and deliverable stocks might be very desirable in March/April/May next year ..................Flat price remains supported because we are near the lows of the decade but, rallies may be muted as our Federal Reserve pursues a monetary policy of quantitative tightening.............................................

End users appear to be more than willing to add coverage sub 360 CZ and 850 SX and 500 WZ....................Producers might be more than willing to hedge new crop production at $6 WN, $10 SS and $4.20 CT.........................It appears that we might just get comfortable within a tight trading range for a few months................................We'll be dealing with November bean deliveries and then the end of the month..................Open interest has room to grow yet, we need a reason to move the market .....................Patience!

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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