The following commentary does not necessarily reflect the views of AgWeb or Farm Journal Media. The opinions expressed below are the author's own.
Grain TV is a daily recap after the market close, providing opinions on fundamental analysis of market direction, influences and expectations. This daily program is produced by Grain Hedge, a discount brokerage firm that provides farmers and elevators with agricultural intelligence including live market quotes, cash bid data, the Grain Hedge Optimizer™ and mobile trading platforms, all for $7 commission per side. Grain Hedge provides tools to allow farmers the ability to trade when the markets move without having to wait for a broker and the information to execute a marketing strategy with confidence.
Today's USDA WASDE report held no surprises for corn and beans, but wheat stocks came in well above expectations. There is a glut of wheat in the market right now, with global wheat stocks at 10 year highs. You can see from our corn - wheat spread chart below that after today's trade we see DEC corn at an 18 cent premium over the DEC Chicago wheat contract.
With this divergence between these two markets, livestock producers may find opportunities to substitute wheat in their feed diets. High stocks should keep wheat well supplied in the market place and this substituion will only further hurt a weak demand scenario for corn. To keep track of this and other spread opportunities in real-time from your home computer, take a demo of the Firetip platform!
THERE IS A RISK OF LOSS IN TRADING FUTURES AND OPTIONS. FUTURES TRADING IS NOT APPROPRIATE FOR ALL INVESTORS.
PLEASE READ OUR RISK DISCLOSURE.
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