Wheat correction over for now?

[malleefarmer]

Wheat prices have gained last week due to basis improvement (drop in CDN $).

Same here our dollar 62 cents lost 5 cents since nov

[TechAnalyst]

That brings up a good point.

Assuming the entire world economy doesn’t have a complete meltdown, those with money will eventually look for new areas to invest in. That usually is in sectors that have performed well during times of weakness.

It may be our turn to get thrown down the outhouse next but so far, grains and oilseeds have held up relatively well. Especially when they are converted to Canadian dollars.

Should that continue and the world begins to believe it understands the scope of damage – allowing investors the confidence to stick their toes back in the water, we may see the benefit of their interest.

Meanwhile, the bright side of all of the ugly human behavior (panic hording) that this has highlighted is the need to take food security and supply seriously. Maybe the days of just in time inventory will be looked at negatively instead of celebrated.

For now, let’s just pretend all this excessive money being injected at zero interest rates will lead to the food we produce getting the respect it deserves.

[malleefarmer]

Bit of red tonight again.

Wheat is sneaking back up to $300 port for dec delivery take of $30 for my on farm price.

Falling currency’s holding up our prices.

Canola was 590 didn’t check today again port price take of 30

[Oliver88]

Dollar keeps getting hammered today, now at .715

Local wheat prices should be going up today.

[farming101]

Dollar keeps getting hammered today, now at .715

Local wheat prices should be going up today.

Grainco's usually share the exchange adjustments in a ratio of 99:1 in their favor. I would expect the same this time around all things considered. Yes I'm being sarcastic

[Oliver88]

Grain companies that were telling us the world is awash of wheat and the world is too good at growing wheat a month ago are now trying to buy wheat.

Interesting but looks like holding wheat will pay off.

[malleefarmer]

CBOT May wht up A$6.71/t to A$306.05/t & Dec up A$6.01 to A$316.31. Both driven solely by drop in A$ to 59.94 US cents. Support for CBOT as market tries to pick a bottom. HRW also supported despite some improvement in crop conditions in the Sth Plains.

[farming101]

ZWK has some pretty good support at 483. Some weaker support at 488 1/4

KEK weak support at 416 7/8, but a good outside day higher so maybe it'll hold

[farming101]

ZWK action today encouraging. Look for a couple days closing price above 508 3/4
510 3/8 high for today so far

[farming101]

I stand corrected. A very rough estimate shows the Grainco's only kept 28% of the exchange week/week

KEK20 is in the buy signal area. Need confirmation tomorrow. The problem is with the quick increase (about 8.5% in three days) the price might not touch an entry area trigger till the rally is half over. In addition tomorrow is Friday. Expect traders to even up positions. Nobody with limited resources/no actual stocks will be eager to stay in the market over the weekend.

Chicago rally a bit weaker and Minneapolis weakest at the moment

Update: Chicago has now joined with a buy signal and MW not far behind. When I say buy signal I mean it's time to pay attention. Not necessarily time to buy

[farming101]

Everything is possible and nothing is possible in this environment

ZWN20 could be 30% up by third week of May.

First though, the May contract still needs to rise above 5.77 and 5.87 to leave the downtrend behind

[AlbertaFarmer5]

Just replying to note that some of us are reading and really appreciating the posts on this thread.

Just because you're excellent analysis may go uncommented, doesn't mean it is unread or unappreciated


Thanks for sharing.