The Most Interesting Grain Development Today


Jerry Welch, Commodity Insite!
Call me at 406 -682 -5010
Ennis, Montana 59729

Follow me on twitter@commodityinsite

My newsletter Commodity Insite is published twice a day. However, if something surfaces that I view important for my subscribers, brokerage clients or those that recently purchased my book, Haunted By Markets I quickly broadcast a Special Email Alert. And today I did post a Special Email Alert. It can be found below and notice the time sent.

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SPECIAL EMAIL ALERT!

Chicago December '19 wheat is now 4 cents higher but Chicago December '20 is 1 lower. The spread is trading at at $.31 and less. A close of less than $.30 is an important breakout in favor of the '19 contract. Those holding that particular spread should sit tight.

If front Chicago wheat can close higher it bodes well for December corn. Right now, corn is lower but if it touches unchanged, an upside key reversal will have been carved out. But of course, the key to all grains including corn is the weather and the Thursday USDA crop report. As for the weather, I have one group saying an early frost will hit on September 23. If so, grains will lurch higher.

Cattle remain under heavy selling pressure with feeders down 200 points. The live market is 90 lower with the oinkers up 100 points. Critter trade is once again frothy. And what else is new you ask?

The most interesting development this morning is the rise with Chicago wheat with the bull spreads doing well. But will that scenario last? Stay tuned!

the time is 9:44 a.m. Chicago

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As I type furiously away, Chicago wheat is 113/4 to 143/4 higher with corn up 1 cent and soybeans on the plus by as much as 2 to 3 cents. The gains with each grain "aint" much but the fact is they are indeed posting upside key reversals. And a key reversal is the only technical signal I favor. Those bullish grains may be able to buy into the complex now with tight stops at the low of the day.

Note too, the dollar is lower and in theory that is price supportive for grains and in particular wheat. Still, the grains have to endure a USDA monthly report this Thursday that is potentially bearish. However, Bloomberg News just published a piece well worth reading about the upcoming report. Go to: https://www.bloomberg.com/news/articles/2019-09-06/hedge-funds-face-off-with-analysts-in-corn-ahead-of-key-report and see for yourself.

And finally, some of my weather contacts are calling for an early frost or freeze on September 12. Anyone want to be short grains if that forecast comes to be?

There is no substitute for timely and accurate information. Call me at 406 682 5010. Or, drop me a line at commodityinsite1@gmail.com


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