Kansas Association of Wheat Growers
May 29 Dan Maltby Marketing Newsletter
Hello Kansas Wheat.
Wheat markets continued the rally, up into The Box I talked about last week, offering a good pricing opportunity. We’ll re-visit that concept in a bit.
More interestingly, Monday night’s opening after the long weekend Gapped Higher, totally shrugging off this radar showing a decent Monday night rain in HRW wheat country.
The market is saying something, but whether or not it’s “right” is always debatable. Momentum Funds are long, and willing to ride it and even add to length, until they get other signals.
Fundamentally, deep down I think it boils down to one question: how much USA winter wheat is Brazil going to buy?
You hadn’t heard Brazil is buying USA wheat? Me neither. And they’re not right now. BUT the market acts like they will. Otherwise…this thing is getting out of hand.
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Source: Kansas Association of Wheat Growers