Drying Out

It's a tough time in the growing season to be too bearish yet, the funds are short with a large edge and if we hit on all cylinders over the next few months they'll be able to exit with a profit when the producer surrenders his crop during harvest. Forecasts of a little warmer than normal as well as drier than normal for the majority of the Heartland in the most recent 6 to 10 day forecast might be seen as cooperative to plantings for corn and development for wheat. Additional selling might be generated from a negative macro outlook as there continues to be concerns over central banks, Brexit as well as social unrest in Venezuela and other hot spots.

Spreads are still indicating that there's no urgency to own corn nor beans while wheat is still showing that we need decent quality regardless of quantity in both the domestic and international markets. The market will be sensitive to weather stories the next few months yet, as of this writing, things look good in Europe, Black Sea region, India as well as the Heartland.

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

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