Maltby Marketing News for June 11
June 12, 2018
Kansas Association of Wheat Growers
Hello Kansas Wheat.
When we look at this weekly closing futures table, it’s obvious KC winter wheat was a rock star, only losing 3c, while corn was creamed, down 16c and beans were crushed, down more than 50c.
Both corn and beans set new red numbers, indicating long corn positions are being liquidated, and short bean positions are being added to. If we get new red numbers this Friday, there will be more sell-stops.
I’m trying to be objective. It’s very difficult for me to think wheat can stay up here without help from corn or beans, but even though it’s been a long time since we’ve seen that, it has happened.
What is going on? We know it’s a short winter wheat crop in the USA, and underlying support might be coming in from dry weather in Russia and a potential disaster in Australia.
A few weeks ago, I asked the same question, and my conclusion was Brazil must be snooping, even though absolutely nobody was talking about it. Guess what? This week we saw Brazil is indeed buying USA HRW.
SO now the question shifts to “how much will they buy?” And then “will prices need to go higher to accomplish that?”
Source: Kansas Association of Wheat Growers