Kansas Association of Wheat Growers
Last week we said the spring wheat guys’ plan was to stay long until it rains. The market must think it’s wet enough, at least for now…
Thursday’s WASDE reports weren’t friendly either. Russia’s (FSU) wheat production estimate jumped 8.6 million tonnes…wowzers. Probably some of that is spring wheat, and we know they certainly raise a lot of winter wheat.
A lower USA corn production estimate could have been friendly, but it came with lower usage expectations, and finally a big jump in USA soybean production wasn’t bullish at all. Another bearish trifecta….
Let’s start by looking at the ending weekly 11-week futures table. “Bleak” is the word.
New red numbers in KC and Chgo wheat, and new red numbers in corn say the Momentum Funds are building short positions and a 40c drop in MGEX spring wheat suggests the Fund longs are nervous or worse.
Not a good week for producer longs with unsold grain, and Sunday’s lower opening suggests this Bear Slide is far from over.
Source: Kansas Association of Wheat Growers