Grain Spreads: Wheat Revival

Please join me for a free grain webinar every Thursday at 3pm Central for a free grain webinar. We discuss supply, demand, weather, and the charts.  Sign Up Now

Commentary

The wheat market turned higher this morning and closed near the day's highs with double digit gains. More headlines covering the ongoing conflict between Russia and Ukraine as speculation that both nations’ workarounds for export routes will add cost to the world wheat trade. Not surprisingly, the Russian government is playing down the problems and calling Ukraine terrorists and pirates after 116 Russian ships have been attacked in the last 9 days. No attacks on specific grain ships have been mentioned but nonetheless, it has certainly gotten Russia's attention. Russia has retaliated with larger munitions focused on Kiev. The Union of Grain Exporters and Producers confidently stated that “Russia will fully meet its grain export commitments to foreign partners despite the situation in the Sea of Azov.” Crop Progress putting winter wheat harvest at 67% complete well ahead of the 61% average, Spring wheat conditions improving 1% to 58% good to excellent vs 53% average, #1 Spring wheat producer North Dakota up +8% to 65% Good to excellent with #2 producer Minnesota up +6% to 92% good to excellent. Funds are still short Chicago wheat at approximately 43K and we could see further short covering. The path of least resistance looks higher in my view. No trade recs at this time.

If you would like to receive more information on the commodity markets, please use the link to join our email list Sign Up Now

Sean Lusk

Vice President Commercial Hedging Division

Walsh Trading

312 957 8103

888 391 7894 toll free

312 256 0109 fax

slusk@walshtrading.com

www.walshtrading.com

Walsh Trading

311 S Wacker Drive Suite 540

Chicago, Il 60606

Walsh Trading, Inc. is registered as a Guaranteed Introducing Broker with the Commodity Futures Trading Commission and an NFA Member.
Futures and options trading involves substantial risk and is not suitable for all investors. Therefore, individuals should carefully consider their financial condition in deciding whether to trade. Option traders should be aware that the exercise of a long option will result in a futures position. The valuation of futures and options may fluctuate, and as a result, clients may lose more than their original investment. The information contained on this site is the opinion of the writer or was 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 market prices.PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS. All information, communications, publications, and reports, including this specific material, used and distributed by Walsh Trading, Inc. (“WTI”) shall be construed as a solicitation for entering into a derivatives transaction. WTI does not distribute research reports, employ research analysts, or maintain a research department as defined in CFTC Regulation 1.71.