Commentary
Russia’s government echoed last week’s statement over the weekend saying they maybe declaring a national emergency due to the frosts that damaged crops earlier this season. The light volume night session surged over 20 cents higher in Chicago and KC wheat. However, there’s an old adage that states that renewed headlines on old news have a tendency to suffer a quick demise. That in my view did in wheat during the day session as the overnight rally vanished in the first half hour of trading. The Russian headline introduced no new information and the Russian cash markets were unmoved by the govt statement in my opinion. Private wheat production estimates are predicted near the 80 to 83 million metric ton range, although a few guesses are now dropping into the upper 70s. Drought is actually the bigger problem currently in Southern Russia, and the next 10 days continue to look hot and dry for the southern half of Russia’s wheat belt. July SRW wheat fell 5 3/4 cents at $6.72 3/4 and nearer the session low. July HRW or KC wheat lost 8 3/4 cents at $7.00 and nearer the session low. July spring wheat futures closed 6 cents lower to $7.33 3/4. The wheat futures markets maybe also feeling the selling pressure from the recent downdrafts in the corn, soybeans and soybean meal futures markets. Watch the headlines coming out of Russia and Black Sea. This market has a “story” but faces headwinds as winter wheat harvest gets underway.
Trade Ideas
Futures-N/A
Options-N/A
Risk/Reward
Futures-N/A
Options-N/A
Please join me for a free grain and livestock webinar every Thursday at 3pm Central. We discuss supply, demand, weather, and the charts. Sign Up Now
Sean Lusk
Vice President Commercial Hedging Division
Walsh Trading
312 957 8103
888 391 7894 toll free
On the date of publication, Sean Lusk did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Disclosure Policy here.
Disclaimer: The copyright of this article belongs to the original author. Reposting this article is solely for the purpose of information dissemination and does not constitute any investment advice. If there is any infringement, please contact us immediately. We will make corrections or deletions as necessary. Thank you.
