Ontario's middle east | JonSCKs - 7/27/2014 20:16
/>We are starting to see country elevator wheat bids exceed terminal bids.. with the poor crop here.. some elevators took in 30% of last year's harvest.. and guys seem to have sealed bins.. waiting to see what develops. So I believe this is adding support to the fall crops as elevators will want to fill with something.. We are due to bottom wheat basis and start seeing support.. etc.
The wheat market has pretty good carry giving commercials reason to hold it off the market. The basis then has to work to pry it loose. Kinda looks like the BASIS IS FOLLOWING THE SPREADS. This is the time and place to be friendly basis........... Not staring out into the abyss of a huge inversion.
Edit: Forgot to comment on corn. I'm on the same page as you for an Aug rally. Whether or not that will be enough to make the producer unload some new crop IDK. They should be evaluating target orders and re-examining them prior to the sep crop report. There will be many old crop markets that get smashed if and when that plays out. Probably not yours or mine but the guys in between could give up a big chunk of a rally on basis .(Ray might be a nice guy but he has his limits) lol, sorry couldn't resist Ray
Edited by Maizeing 7/27/2014 20:12
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Basis
