|
| While my contacts do not see fund activity on the buy side..they believe the selling has tapered off...anyone who wanted or needed out...could do so. The dollar is key.
I think it is noteworthy the inverse on Mpls Spring wheat is 33 cents, KC is 55 & Chgo is 77...spot premium to May ...this inverse evidences demand. Soy board crush runs a 75..which is okay & crude oil crack spread has declined from $20 per BBL on 6-29 to $6...implies heating oil or gasoline will have to advance or refining rates will slow.
There is a widespread belief among feedgrain traders the ethanol grind is slowing, I have no way of knowing; I do know, if the ethanol grind is stable for August or reflects a continued increased rate, it will be a surprise to the corn market.
A "hands on" type in Brazil expresses serious concern (according to my NYC friend) about the potential size of their soy crop...soil does not retain moisture..and no rain yet.
| |
|
For what its worth
