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Buxton ND | ZW big time short covering with a fair chuck of NEW buying, NEW longs.
KE good short covering buying.
MWE roughly even, been heavy duty buying here the last 2 weeks, they maybe just need a break but in general someone is final coming to #THEwheat party. The head-fake of 2 weeks in ZW is priceless, BEYOND priceless with the head-fakes in bean,then corn this spring. This has nothing to do with nothing expect money flows.
ZC net buying of 53k, not near a record tho the heaviest buying we have seen since June, of that 53, 19k was NEW longs.
ZS net buying of 23k and get this 22k was NEW buying by the long side of the spec money.
ZM well,,,,,,,,,,,,,,,, its still the dog.
ZL 14k of buying which 13k was NEW longs.
Notice the multiple use "NEW" above ?
This is the best news we as farmers have had since early June.
What's changed ? ? ? IDK would if be worth a peak at the stock indexes ? ? ?
Action since Tuesday I would call friendly
This above farmers well like,,,,, this below I will tend to piss "some" folks off. We farmers are on one side of the fence, commercials/ end users the other side. I WILL stand on the farmers side every day of the year.
THE low looks to have been that DP Labor Day low of $3.01 (close enough to 2.90) The DP part is this was forced selling of grains put on prior DP contract, some of which were done since last spring. This selling can be seen on Blu's charts in corn/beans and even wheat just following the crowd lower. Really sad part is some of these DP's were rolled from ZCN to U then the market went into a full $1.00 free fall. There are WAY MORE grains sold via DP contract IMO then we as producers know. I asked some commercial guy @CC last winter, how much grain are sold on DP contracts ? He answer maybe 2%, I really could have back handed the guy.
SOOOOOOOOO THIS YEAR you wanna sign a DP contract again ?
OR just shoot your self in the foot with a .45 ACP.
Will if it dont fit in the bins/bags, you don't wanna pay big commercial storage costs or pile it on the ground your self, not much choice right now.
I DO NOT and WILL NOT use DP/priced later contracts period on my farm. This is why I push "A" "marketing plan" using TO or "Target Orders" above the market and playing "Bid my Basis" One does not have to hedge futures on the board when the target price is hit. You can use straight 8 cash sells, HTA's or buying put options at a strike price and cost of you can live with or combo of the above.
Caution is the US $$$ but corn did CLOSE above 3.50 and beans WELL above 9.70 with all wheat positive on the week.
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Buying Binge :o) You'll Like This
