Awaiting Word

Awaiting a statement from the USDA after the closed meeting starting at 10:30 Chicago time. The trade could be going into the report resolved to $2 per bushel for beans, 4 cents for corn and 43 cents for wheat. We'll see!

Weather and politics! What a combo but, we've been here before and whether we like it, or not, we'll be dealing with them for a few more months.

Corn acreage and production is down this year but how much will be determined by Mother Nature and we'll be dancing through pollination and growing degree units until we get our first hard freeze. Regardless, those end users who grew complacent prior to ten trading sessions ago, may not be complacent on any dips in early June.

Wheat spreads are still unnaturally friendly to Chicago. Kansas City wheat is at feed value in the interior and any quality issues usually means heavy discounts which might force it into feed. Less corn acres and a later harvest might mean Southeastern poultry markets might look to junky soft red as an alternative. Lots of "ifs" here in the next six weeks. We have to see the quality of the crop and it's a "wait and see" game.

Traders are resolved that more bean acres will get planted this Spring and Summer which might mean another carryover increase. Just what the spreads don't need. Look for a continuation of sloppy price action.

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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