Fleursdumal
फूल की बुराई
nada stoppato, però un secondo tentativo se torna sù a 935 lo faccio
Grains : corn, wheat, oats,soybeans, soybean meal&oil
- Creatore Discussione Fleursdumal
- Data di Inizio
Fleursdumal
फूल की बुराई
on board - vediamo se va meglio, kansas fa sempre da lepre
Fleursdumal
फूल की बुराई
uscito in close a 845 , era tentato di tenerlo perchè ho l'impressione che voglia ritirar fuori la testa ma meglio correre zero rischi - ergo tolgo lo stop di prima e le comm e mi scalo in alto di altri 5 il WC su mar a 455
Sono d'accordo che lo spread W/C sia molto alto (del resto l'avevo shortato anch'io a valori di 100 più bassi) e ne sono uscito in forte perdita sul W.
Il corn non sembra così forte da salire e lo spread è completamente dipendente dal sovrapprezzo del wheat.
Ritengo che sia tutto sommato premiante entrare al momento giusto short sul wheat che non continuare a far spread (che comunque costano di più in commissioni).
Io amo gli spreads, ma penso che il corn lungo non copra a sufficienza in caso di rialzo del W e probabilmente scenderà. sia pure in modo minore, in caso di caduta del W.
Il corn non sembra così forte da salire e lo spread è completamente dipendente dal sovrapprezzo del wheat.
Ritengo che sia tutto sommato premiante entrare al momento giusto short sul wheat che non continuare a far spread (che comunque costano di più in commissioni).
Io amo gli spreads, ma penso che il corn lungo non copra a sufficienza in caso di rialzo del W e probabilmente scenderà. sia pure in modo minore, in caso di caduta del W.
Fleursdumal
फूल की बुराई
con i prezzi dei grains così alti inevitabile l'intervento di lobby in pressione sulla politica
Farmer vs. farmer over ethanol boom
By Christopher Leonard
Associated Press
Corn farmer Keith Witt amid harvesting in Warrenton, Mo. Corn farmers are pushing for more ethanol production; meat, dairy and poultry producers are pushing back as higher grain costs cut into profit.
TOM GANNAM / Associated Press
Corn farmer Keith Witt amid harvesting in Warrenton, Mo. Corn farmers are pushing for more ethanol production; meat, dairy and poultry producers are pushing back as higher grain costs cut into profit.
» More images
ST. LOUIS - As a chief advocate for corn farmers, Rob Litterer will work the halls of Congress this fall for increased ethanol production. But he's facing stiff opposition from what on the surface seems an unlikely source - the farm lobby.
The burgeoning ethanol industry is creating prosperity for rural towns throughout the Midwest, but it is also pitting farming groups against each other.
Corn farmers are pushing for more ethanol production as the industry creates an enormous new market for their crop, giving corn prices the kind of lift they have not seen in years. But the corn farmer's win is the hog farmer's loss. Meat, dairy and other food producers are pushing back against the ethanol boom as higher grain prices cut into already slim profit margins.
So as Litterer, incoming president of the National Corn Growers Association, visits with members of Congress, he knows that meat and dairy lobbyists will be close behind, delivering the opposite message.
"There is no question they have a policy that they are opposed to an increase," Litterer said. "But I don't think their opposition carries any water."
Ethanol and biodiesel served a niche market before the U.S. government imposed a mandate - called the Renewable Fuel Standard - requiring the United States to use seven billion gallons of renewable fuels by 2012.
This fall, Congress will consider a new fuel standard that could boost production as high as 36 billion gallons by 2022. But the future of that bill is uncertain because of the food fight shaping up between grain producers and livestock lobbyists.
It is inevitable that a rise in corn prices will increase the cost of food, said Pat Westhoff, an economist with the Food and Agricultural Policy Research Institute at the University of Missouri. Corn and its derivatives, such as corn syrup, are staples for a variety of foods, from soft drinks to wheat bread.
But that does not mean the average person will notice a price increase at the grocery store, Westhoff said.
U.S. consumers spend about $700 billion a year on food. A $6 billion increase in the cost of corn - which amounts to about $1 a bushel - would still raise food costs only about 1 percent, he said.
But the pain is more acute for corporations like Tyson Foods Inc., the nation's largest meat company.
Part of Tyson's problem is higher grain prices - the company said grain costs for its chicken feed shot up $113 million in the third quarter of this year alone when compared with the year before.
The American Meat Institute has joined dairy, egg and turkey lobbyists to fight any increase in ethanol mandates that could divert yet more feed into fuel refineries.
Litterer said fears of rising corn prices were overhyped. While prices did spike between 2005 and 2007 about $1 a bushel, that does not mean they will keep rising, he said. The higher prices have induced farmers to plant more, which increases supply and brings the price back down.
While meat companies are seeing profit dwindle, rising grain costs are not causing them to lose money overall, said Terry Francl, senior economist with the American Farm Bureau Federation.
Demand for meat remains relatively steady despite modest price swings, which means most of a meatpacker's rising feed costs can be passed to consumers, he said.
Francl emphasized that he was not choosing sides in the argument between the Farm Bureau's members who raise livestock or grow corn.
"It's one of the many delicate situations we face" as an umbrella group for farmers, Francl said. "I am not trying to judge one vs. the other."
Farmer vs. farmer over ethanol boom
By Christopher Leonard
Associated Press
Corn farmer Keith Witt amid harvesting in Warrenton, Mo. Corn farmers are pushing for more ethanol production; meat, dairy and poultry producers are pushing back as higher grain costs cut into profit.
TOM GANNAM / Associated Press
Corn farmer Keith Witt amid harvesting in Warrenton, Mo. Corn farmers are pushing for more ethanol production; meat, dairy and poultry producers are pushing back as higher grain costs cut into profit.
» More images
ST. LOUIS - As a chief advocate for corn farmers, Rob Litterer will work the halls of Congress this fall for increased ethanol production. But he's facing stiff opposition from what on the surface seems an unlikely source - the farm lobby.
The burgeoning ethanol industry is creating prosperity for rural towns throughout the Midwest, but it is also pitting farming groups against each other.
Corn farmers are pushing for more ethanol production as the industry creates an enormous new market for their crop, giving corn prices the kind of lift they have not seen in years. But the corn farmer's win is the hog farmer's loss. Meat, dairy and other food producers are pushing back against the ethanol boom as higher grain prices cut into already slim profit margins.
So as Litterer, incoming president of the National Corn Growers Association, visits with members of Congress, he knows that meat and dairy lobbyists will be close behind, delivering the opposite message.
"There is no question they have a policy that they are opposed to an increase," Litterer said. "But I don't think their opposition carries any water."
Ethanol and biodiesel served a niche market before the U.S. government imposed a mandate - called the Renewable Fuel Standard - requiring the United States to use seven billion gallons of renewable fuels by 2012.
This fall, Congress will consider a new fuel standard that could boost production as high as 36 billion gallons by 2022. But the future of that bill is uncertain because of the food fight shaping up between grain producers and livestock lobbyists.
It is inevitable that a rise in corn prices will increase the cost of food, said Pat Westhoff, an economist with the Food and Agricultural Policy Research Institute at the University of Missouri. Corn and its derivatives, such as corn syrup, are staples for a variety of foods, from soft drinks to wheat bread.
But that does not mean the average person will notice a price increase at the grocery store, Westhoff said.
U.S. consumers spend about $700 billion a year on food. A $6 billion increase in the cost of corn - which amounts to about $1 a bushel - would still raise food costs only about 1 percent, he said.
But the pain is more acute for corporations like Tyson Foods Inc., the nation's largest meat company.
Part of Tyson's problem is higher grain prices - the company said grain costs for its chicken feed shot up $113 million in the third quarter of this year alone when compared with the year before.
The American Meat Institute has joined dairy, egg and turkey lobbyists to fight any increase in ethanol mandates that could divert yet more feed into fuel refineries.
Litterer said fears of rising corn prices were overhyped. While prices did spike between 2005 and 2007 about $1 a bushel, that does not mean they will keep rising, he said. The higher prices have induced farmers to plant more, which increases supply and brings the price back down.
While meat companies are seeing profit dwindle, rising grain costs are not causing them to lose money overall, said Terry Francl, senior economist with the American Farm Bureau Federation.
Demand for meat remains relatively steady despite modest price swings, which means most of a meatpacker's rising feed costs can be passed to consumers, he said.
Francl emphasized that he was not choosing sides in the argument between the Farm Bureau's members who raise livestock or grow corn.
"It's one of the many delicate situations we face" as an umbrella group for farmers, Francl said. "I am not trying to judge one vs. the other."
Fleursdumal
फूल की बुराई
September 10, 2007
Wheat Continues its Rally
The wheat complex brushed off the pre-Labor Day profit taking and quickly made new highs as the new week started amid continued strong demand and withering prospects for the Australian crop as it saw hot winds and disappointing rains.
We got the word just before the holiday weekend that India did purchase much more wheat than they were originally offered, taking 795,000 MT at roughly $389/MT and announcing that they’d like to buy even more. After the holiday, Egypt also purchased 470 MT wheat; Iraq was close behind for 200 MT and Algeria for 500,000-700,000 MT.
Not only are the buyers still coming for large quantities, but we’re seeing hard red winter get an increasing share of the business. This explains why Kansas City futures are gaining on Chicago, finally narrowing the spread that went to all-time lows when Chicago led the way higher. The buyers aren’t shying away from US wheat at all-time highs, as they are fearful to enter agreements with Russia as the Russians debate export restrictions because of rising bread prices.
The EU’s market has been more volatile and seen higher prices than the US as buyers there scramble to find adequate feed supplies. With no government stocks to draw upon, the EU is contemplating a number of remedies for their grain shortage, which is adding to the price volatility. They are considering reducing the import tariff for wheat, but supplies are tight around the world, not just in the EU. They are releasing the 10% acreage set aside, which they estimate will result in a 20% increase in wheat production. They are considering allowing more imports from Eastern Europe, and some have even dared to mention allowing GMO products into the country, but that is unlikely to happen.
The market’s attention has turned decidedly onto Australia, and rightly so. The world desperately needed a good crop from them and those odds are decreasing by the day. Anticipated rains have failed to materialize as the crop enters critical growing stages. Production estimates continue to decline, and that is forcing buyers who would normally wait for that crop to step up with another round of purchases.
This is definitely a near term bull market, however, as new crop futures for ’08 and ’09 have seen aggressive selling even as old crop makes new all-time highs. The hedgers are much less fearful for those deferred crop years, particularly with the virtual guarantee of a big increase in acreage worldwide. The strength of the old crop isn’t enough to offset the selling pressure of new crop, and I would expect that to continue.
This market will likely just continue to push higher until we can really quantify Australia’s crop. Further yields reductions will push prices higher until the demand says it’s had enough. It does not appear we’ve seen that level just yet. Everybody knows that all bull and bear markets eventually end, but this wheat bull market has shown little sign of wavering despite it being a very mature bull market. We can only sit back and wait for at least some sort of significant break before we can even begin to think that the high is in.
Wheat Continues its Rally
The wheat complex brushed off the pre-Labor Day profit taking and quickly made new highs as the new week started amid continued strong demand and withering prospects for the Australian crop as it saw hot winds and disappointing rains.
We got the word just before the holiday weekend that India did purchase much more wheat than they were originally offered, taking 795,000 MT at roughly $389/MT and announcing that they’d like to buy even more. After the holiday, Egypt also purchased 470 MT wheat; Iraq was close behind for 200 MT and Algeria for 500,000-700,000 MT.
Not only are the buyers still coming for large quantities, but we’re seeing hard red winter get an increasing share of the business. This explains why Kansas City futures are gaining on Chicago, finally narrowing the spread that went to all-time lows when Chicago led the way higher. The buyers aren’t shying away from US wheat at all-time highs, as they are fearful to enter agreements with Russia as the Russians debate export restrictions because of rising bread prices.
The EU’s market has been more volatile and seen higher prices than the US as buyers there scramble to find adequate feed supplies. With no government stocks to draw upon, the EU is contemplating a number of remedies for their grain shortage, which is adding to the price volatility. They are considering reducing the import tariff for wheat, but supplies are tight around the world, not just in the EU. They are releasing the 10% acreage set aside, which they estimate will result in a 20% increase in wheat production. They are considering allowing more imports from Eastern Europe, and some have even dared to mention allowing GMO products into the country, but that is unlikely to happen.
The market’s attention has turned decidedly onto Australia, and rightly so. The world desperately needed a good crop from them and those odds are decreasing by the day. Anticipated rains have failed to materialize as the crop enters critical growing stages. Production estimates continue to decline, and that is forcing buyers who would normally wait for that crop to step up with another round of purchases.
This is definitely a near term bull market, however, as new crop futures for ’08 and ’09 have seen aggressive selling even as old crop makes new all-time highs. The hedgers are much less fearful for those deferred crop years, particularly with the virtual guarantee of a big increase in acreage worldwide. The strength of the old crop isn’t enough to offset the selling pressure of new crop, and I would expect that to continue.
This market will likely just continue to push higher until we can really quantify Australia’s crop. Further yields reductions will push prices higher until the demand says it’s had enough. It does not appear we’ve seen that level just yet. Everybody knows that all bull and bear markets eventually end, but this wheat bull market has shown little sign of wavering despite it being a very mature bull market. We can only sit back and wait for at least some sort of significant break before we can even begin to think that the high is in.
Fleursdumal
फूल की बुराई
Pre-Opening Wheat Market Report for 9/17/2007
December wheat traded 24 cents higher in the overnight session. There were 221 contracts delivered against September wheat this morning.
The lack of "drought-busting" rains for Australia leaves the trade nervous that the tightness in the world supply might persist into the spring of 2008, and this has raised concerns from end users to increase coverage. A lull in export activity last week along with long liquidation selling after the reversal-top pattern on Wednesday has traders fairly convinced that a near-term top is in place. However, if crop estimates for Australia wheat continue to drift lower, the trade will remain concerned with tight world supply. The Australia government will release its official crop forecast on Tuesday, and the trade is looking for an estimate under 20 million tonnes with some estimates closer to 15 million tonnes. This compares with last week's USDA forecast of 21 million tonnes. The market found further support overnight from talk that Pakistan may import up to 1 million tonnes of wheat. In addition, the French Farm Ministry revised their soft wheat crop production estimate to 31.65 million tonnes from 32.9 million tonnes seen last month. Taiwan is tendering to buy 88,000 tonnes of US wheat.
December wheat traded in a wide, choppy range on Friday. Futures first rallied on short covering and then retreating in the afternoon, only to come back towards the middle into the close. Reports that Turkey's state grain board will seek permission to import 800,000 tonnes of wheat, due to drought there, was a supportive factor, as were ongoing concerns over the fate of the Australian wheat crop. There were still no substantial rains in the Aussie forecast today. Private analysts have reduced their estimates to 15-18 million tonnes this week, and the trade now anticipates a revised official estimate from the Australian Wheat Board that is due out tomorrow. State officials there have commented this week that some areas could lose 50% of acres if they do not get rain in the next week.
There were some scattered rains in West Australia wheat areas over the weekend and more scattered rains in the forecast for this week, but the overall dry pattern looks to persist in the next week or so, and more damage is expected as the crop enters the critical heading stage. Hard and soft wheat basis at the Gulf was steady on Friday due to recent strong demand. The Commitment of Traders report with options showed the market in a bullish setup, but the selling trend of the non-commercial trader is a short-term negative force. Funds were net sellers of 11,709 contracts for the week to a net long of just 22,025 contracts. Trend-following funds shifted from a net long to a net short position of 2,213 contracts and the fund selling is seen as a short term bearish force. After the 83 cent break from the reversal day highs, December wheat may have corrected some of the overbought condition. Australia weather remains key and could keep sellers on the sidelines as the world "counted on" a good supply flow from the southern hemisphere.
Fleursdumal
फूल की बुराई
Uscite le previsioni sulla produzione di grano aussie : 15,5 m tonnellate , abbastanza al di sotto delle aspettative e ora ci possiamo mettere il quore in pace
Pre-Opening Wheat Market Report for 9/18/2007
December wheat traded 12 cents higher in the overnight session.
News from the Australia Bureau of Agriculture and Resource Economics overnight was bullish with a new wheat production forecast of 15.5 million tonnes. This compares with trade expectations near 17-18 million and 22.5 million as their previous forecast. In addition, the USDA forecast last week was 21 million. With world ending stocks already pegged at just 112.36 million tonnes, the lowest since 1977, the further tightening of world supply is seen as bullish. In addition, the market will continue to monitor the weather situation in Australia as further losses are possible if the weather remains dry. Australia is the world's second largest exporter so the lowest forecast could boost US export prospects. US exports are already running well ahead of the pace to reach the current USDA forecast. Indonesia, who typically buys from Australia, may be in the market soon. In addition, Pakistan, Egypt, Morocco, Algeria, Iraq and India have been active buyers recently. Taiwan is tendering to buy 88,000 tonnes of US wheat and South Korea is tendering to buy 47,700 tonnes of US wheat. Pakistan indicated this week that they will tender for up to 500,000 tonnes of milling wheat in the next day or two.
With continued crop concerns in Australia and lower than expected production in Europe, buyers were much more active yesterday and December wheat traded as much as 30 cents higher on the day late in the session. Traders see deteriorating crop conditions in Australia into the key heading stage which helped trigger aggressive buying on the opening as traders look for a sharp revision lower in production forecasts from Australia officials on Tuesday. News that Pakistan may import 1 million tonnes and news that French officials revised their crop down by 1.25 million tonnes to 31.65 million added to the bullish tone. Weekly export inspections, released during the session, came in at 29.65 million bushels as compared with trade expectations at 30-35 million. Cumulative shipments have reached 33.7% of the USDA forecast for the entire season as compared with 28% on average for the past 5 years. Paris futures were sharply higher which added to the bullish tone.
There were some scattered rains in West Australia wheat and more scattered rains in the forecast for this week, but the overall dry pattern looks to persist in the next week or so, and more damage is expected as the crop enters the critical heading stage. Hard and soft wheat basis at the Gulf was steady yesterday due to recent strong demand. The weekly winter wheat planting report showed 14% complete compared to 17% last year. The 10 year average for this time of year is 18%. Traders will monitor the planting progress and crop conditions closely into the winter. The tightening world supply should continue to hold the trend up until the winter wheat crop is planted or Australia weather turns normal.
Pre-Opening Wheat Market Report for 9/18/2007
December wheat traded 12 cents higher in the overnight session.
News from the Australia Bureau of Agriculture and Resource Economics overnight was bullish with a new wheat production forecast of 15.5 million tonnes. This compares with trade expectations near 17-18 million and 22.5 million as their previous forecast. In addition, the USDA forecast last week was 21 million. With world ending stocks already pegged at just 112.36 million tonnes, the lowest since 1977, the further tightening of world supply is seen as bullish. In addition, the market will continue to monitor the weather situation in Australia as further losses are possible if the weather remains dry. Australia is the world's second largest exporter so the lowest forecast could boost US export prospects. US exports are already running well ahead of the pace to reach the current USDA forecast. Indonesia, who typically buys from Australia, may be in the market soon. In addition, Pakistan, Egypt, Morocco, Algeria, Iraq and India have been active buyers recently. Taiwan is tendering to buy 88,000 tonnes of US wheat and South Korea is tendering to buy 47,700 tonnes of US wheat. Pakistan indicated this week that they will tender for up to 500,000 tonnes of milling wheat in the next day or two.
With continued crop concerns in Australia and lower than expected production in Europe, buyers were much more active yesterday and December wheat traded as much as 30 cents higher on the day late in the session. Traders see deteriorating crop conditions in Australia into the key heading stage which helped trigger aggressive buying on the opening as traders look for a sharp revision lower in production forecasts from Australia officials on Tuesday. News that Pakistan may import 1 million tonnes and news that French officials revised their crop down by 1.25 million tonnes to 31.65 million added to the bullish tone. Weekly export inspections, released during the session, came in at 29.65 million bushels as compared with trade expectations at 30-35 million. Cumulative shipments have reached 33.7% of the USDA forecast for the entire season as compared with 28% on average for the past 5 years. Paris futures were sharply higher which added to the bullish tone.
There were some scattered rains in West Australia wheat and more scattered rains in the forecast for this week, but the overall dry pattern looks to persist in the next week or so, and more damage is expected as the crop enters the critical heading stage. Hard and soft wheat basis at the Gulf was steady yesterday due to recent strong demand. The weekly winter wheat planting report showed 14% complete compared to 17% last year. The 10 year average for this time of year is 18%. Traders will monitor the planting progress and crop conditions closely into the winter. The tightening world supply should continue to hold the trend up until the winter wheat crop is planted or Australia weather turns normal.
Fleursdumal
फूल की बुराई
September 17, 2007
Wheat Finally gets a Correction
For roughly the last month, wheat has been trending almost straight up with very little correction. Last week it took out $9 before finally getting a pullback. The whole world watches as they wonder if we’ve already seen the high or if this slight pullback is just the market catching its breath.
So far, the pullback has been orderly, despite the first day being limit-down after breaching the $9 level. What volatility there has been was relatively contained in limited trading ranges. The price action hasn’t been the huge swings up and down that typically happens at the end of major moves.
The fundamentals haven’t lost their bullish momentum, with last week’s export sales the largest since 1979 at 2.1 MMT, a whopper that takes us to over double of last year’s sales. Soft red winter continues to lose pace to hard red winter, and the spread between KC and Chicago continues to narrow. The pace of demand doesn’t appear to be letting up, either, as Pakistan announced over the weekend they would be seeking up to 1 MMT of wheat.
Australian weather had another disappointing week, with very limited rainfall and more reports of producers throwing in the towel and grazing or haying their wheat. The Australian situation has dramatically shifted the demand calendar, with buyers stepping up their purchases much more aggressively for Northern Hemisphere supplies as Southern Hemisphere supplies look dismal. The official Australian government reporting agency, ABARE, will issue their monthly outlook on Tuesday.
Luckily, Argentina has fared better than Australia as their rains have been more consistent after their slow, dry seeding period. Most major production areas of Argentina have adequate moisture as they move into the heart of their growing season.
USDA’s crop report was quickly brushed aside as their Australian production estimate of 21 MMT was still well above where private Australian forecasters have placed their estimates of between 15 – 18 MMT. US ending stocks were shaved down to 362 million bushels, basically just enough for pipeline supplies.
World production numbers were also lowered by 4 MMT, coming mostly from Australia, the EU and Canada. Those reductions were offset by an increase in the Former Soviet Union states. World ending stocks were lowered by 2 MMT to 112 MMT, the smallest actual number since 1975/76, further tightening the stocks/use ratio to 18.1% which was already at an historical low.
The rising tide of wheat is lifting all boats. Corn and beans are pulled higher as the world demand for feed grains shifts away from expensive wheat, along with their own positive bio-fuel fundamentals. The fight for acreage has already begun with winter wheat plantings expected to be sharply higher. Record high prices and good planting conditions will pull more acres into wheat, putting pressure once again on the row crops to allocate what’s left next spring.
For now, the trend is still up as the correction has not violated any major supports. Demand remains strong as buyers are still willing to pay these high prices and supplies only look to get tighter as the rains continue to disappoint in Australi
Wheat Finally gets a Correction
For roughly the last month, wheat has been trending almost straight up with very little correction. Last week it took out $9 before finally getting a pullback. The whole world watches as they wonder if we’ve already seen the high or if this slight pullback is just the market catching its breath.
So far, the pullback has been orderly, despite the first day being limit-down after breaching the $9 level. What volatility there has been was relatively contained in limited trading ranges. The price action hasn’t been the huge swings up and down that typically happens at the end of major moves.
The fundamentals haven’t lost their bullish momentum, with last week’s export sales the largest since 1979 at 2.1 MMT, a whopper that takes us to over double of last year’s sales. Soft red winter continues to lose pace to hard red winter, and the spread between KC and Chicago continues to narrow. The pace of demand doesn’t appear to be letting up, either, as Pakistan announced over the weekend they would be seeking up to 1 MMT of wheat.
Australian weather had another disappointing week, with very limited rainfall and more reports of producers throwing in the towel and grazing or haying their wheat. The Australian situation has dramatically shifted the demand calendar, with buyers stepping up their purchases much more aggressively for Northern Hemisphere supplies as Southern Hemisphere supplies look dismal. The official Australian government reporting agency, ABARE, will issue their monthly outlook on Tuesday.
Luckily, Argentina has fared better than Australia as their rains have been more consistent after their slow, dry seeding period. Most major production areas of Argentina have adequate moisture as they move into the heart of their growing season.
USDA’s crop report was quickly brushed aside as their Australian production estimate of 21 MMT was still well above where private Australian forecasters have placed their estimates of between 15 – 18 MMT. US ending stocks were shaved down to 362 million bushels, basically just enough for pipeline supplies.
World production numbers were also lowered by 4 MMT, coming mostly from Australia, the EU and Canada. Those reductions were offset by an increase in the Former Soviet Union states. World ending stocks were lowered by 2 MMT to 112 MMT, the smallest actual number since 1975/76, further tightening the stocks/use ratio to 18.1% which was already at an historical low.
The rising tide of wheat is lifting all boats. Corn and beans are pulled higher as the world demand for feed grains shifts away from expensive wheat, along with their own positive bio-fuel fundamentals. The fight for acreage has already begun with winter wheat plantings expected to be sharply higher. Record high prices and good planting conditions will pull more acres into wheat, putting pressure once again on the row crops to allocate what’s left next spring.
For now, the trend is still up as the correction has not violated any major supports. Demand remains strong as buyers are still willing to pay these high prices and supplies only look to get tighter as the rains continue to disappoint in Australi
Similar threads
