Volume picking up a bit, and open interest finally beginning to appear. Barley seems off to a more decent start than wheat.
Wheat futures opened yesterday on the ICE-Canada platform. Volume was extremely slow with 3 contracts traded. Durum futures had no volume. Glad to be rid of the CWB and their monopoly, but this is not a good start for our friends up north.
General Mills CEO blames ethanol subsidies for high grain prices. Guess he was playing golf when the heavy spring rains put the corn and spring wheat crops back by 6 weeks, as well as the serial crop difficulties in Russia and China the past year. He probably wants to bankrupt the farm states so that … Read more
After a recent trip by wheat under corn, wheat has returned above corn after yesterday’s quarterly stocks report. Little surprise to this analyst as weather that kept farmers out of fields dried out the past two to three weeks. Corn has broken hard from nearly 8 a bu to under 6 in the Dec option. … Read more
Have spent the last half of this year starting a recycling business in Bloomington, but will get to regular posts. I will use twitter for short notes and this blog for longer thoughts.
Gold prints 1250, and CNBC talking heads are talking gold and wheat in the same sentence, which scares me. Usually you can fade the market when the Wall Street crowd discovers your market, but for once, they seem to be right, just 250 too late.
Wheat continues to be stiff, and rallying to 730s. Beans strengthening, so HRS protein can run. If Soys print 1100, look out above. Apologies for absence, but moving web properties has constrained time.
Cash basis widening while futures are rallying. This usually precludes another leg up. Market needs to test 830 blowoff level in the next few weeks, so caution is recommended. This smells so much like 1983, that I am digging out my charts.
Wheat taking a break, but is considerably volatile. Plantings will be up considerably in the US with a 2.50 rally consolidating during decision period. Expect SRW plantings to exceed a crop of 450 for 2011 harvest.
Wheat backed off to the 740s and is taking a breather after July parabolic move. Probably flagging for a higher move.