Crossroads Cooperative
Toll Free:  (800) 833-2951

Welcome to the merchandiser commentary section of our website.  Here you will find commentary from our merchandisers on the trends of the grain we handle.  Check back weekly for new commentary.  Please use the links on the right hand side of this page to navigate the commentaries.
Merchandiser Comments
Corn Comments - Kyle Fost...
Millet/Sunflower/Milo Com...
Wheat Comments - Joe Chri...
Weekly Market Recap
 
Wheat Comment 5/14/2018


The selloff in wheat continues, we took out the first support and are working on the second support down at $5.04 to $4.96 in the KC July. The commitment of traders report showed the funds huge buyers of wheat through last Wednesday. We were down every day from Friday, which had to bunch all that buying on Wednesday and Thursday of the previous week. Something is not correct I would look for a correction next week. Basis levels continue to firm as car costs have slowed country loading. Export sales continue to be very slow with even Mexico buying Black Sea wheat. I would hope that a 50/60 cent selloff would help that situation. We will see this and next Thursday. With higher wheat export rates, higher car costs than last year and the VSR in KC Hard wheat exports could be slow in the first quarter. That is usually our best quarter. Basis could be very choppy this harvest with the country having little incentive to ship while the export book could be very small. I think the Kansas estimate could adjust smaller along with other states. We may have seen our biggest Hard Red Winter estimate for this year. That could keep the futures choppy for a while. Technically, it looks like we will test our April lows just below $5. We probably need to test those levels and lower to beef up our export book. With the larger crop forecast Calendar spreads should tend to widen. There is still over 100 million bushels in delivery positions against KC futures. The KC/Chicago will remain range bound for the time being, KC strong against declining crop conditions but limited to the top side by poor demand.

Regards,
Joe Christopher
 

This publication is strictly the opinion of its writer and is intended solely for informative purposes and is not to be construed, under any circumstances, by implication or otherwise, as an offer to sell or a solicitation to buy or trade in any commodities or securities herein named. Information is obtained from sources believed to be reliable, but is in no way guaranteed. No guarantee of any kind is implied or possible where projections of future conditions are attempted.

Futures and options trading involve risk. The valuation of futures and options may fluctuate, and as a result, clients may lose more than their original investment. In no event should the content of this market letter be construed as an express or an implied promise, guarantee or implication by or from Crossroads Commodities that you will profit or that losses can or will be limited in any manner whatsoever. Past results are no indication of future performance.”
 
Copyright DTN. All rights reserved. Disclaimer.
Data on this page is provided for information purposes only and is subject to change without notice. For current bids and to market commodities please call 800-833-2951. PLEASE NOTE THAT THERE IS AN INHERENT RISK OF LOSS ASSOCIATED WITH TRADING FUTURES OPTIONS CONTRACTS
Powered By DTN