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sw363535
Honored Advisor

WHEAT Market May 14th

What happened??  

I am looking for a reason for this move??  Not found in "marketing".......

 

 

My wife just gave me $2,000 worth of therapy........

 

Quoting her   "You don't have to attend every argument you are invited to!"

 

She's putting it on my tab.

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10 Replies
giolucas
Veteran Advisor

Re: WHEAT Market May 14th

Weather and too many shorts running for the same door.
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clayton58
Veteran Advisor

Re: WHEAT Market May 14th

I'm sure some analyst somewhere will have an after the fact reason. But they won't be able to tell if today was a fluke or the beginning of a trend. Tomorrow this gain and the reason for it may be totally wiped out. Time will tell
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hardnox
Advisor

Re: WHEAT Market May 14th

Could do 5.50-.75 easy without changing the trend. Just a bounce at that point.

 

 

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sw363535
Honored Advisor

Re: WHEAT Market May 14th

Thanks  ------- I didn't see anything in the news even though there was a mention of an event in the Ukraine this morning but I have not been able to confirm it.....

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Palouser
Senior Advisor

The reason .....

...... was that Russia set the government wheat procurement for their reserve above the world price. That effectively keeps Russian wheat off the market.

 

They aren't stupid. Why put the price at a level that would hurt their farmers and match the paper game in Chicago? I think there's a very strong argument that Chicago has oversold and the today price for 'physical' isn't going to be the tomorrow's price. Not unusual at this time of year when traders think the world is 'awash' in wheat. I love hearing that term when the projections already call for consumption to be greater than production.

 

Meanwhile there are rumors India will turn into an importer again this year. They've had several fiascos in a row resulting in losses. First storms that flattened the crop before harvest and enough rain to lower quality. Then after it was bagged and waiting to be moved by the government into storage storms soaked a lot of that. As per normal in India the accusations of who's responsible are flying everywhere. Wheat is the most politicized crop on the globe.

 

Australia would like to supply India but the expected El Nino could conceivably cause extensive and severe dryness before harvest - speculative at this early date of course.

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wrightcattle
Veteran Advisor

Re: WHEAT Market, perhaps the globe

simply did not quit eating.....as we've All been spun to believe the past 6 months.

 

paper then gets ( already has gotten ) Long CHEAP...and vala....wheat runs UP another $2 to $3 per bu. ( real food price area which it should have never been below )

 

jeez, the big usa investment banks are not the world's supposed largest suppliers of everything for nothing.  LOL

 

 

 

 

 

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timetippingpt
Honored Advisor

Re: The reason .....

Or more simply stated...Time (not me that markets time ran out) did Tell....It was time for a bounce and maybe a long term one.

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k5430
Friend

Re: WHEAT Market May 14th

This could be a factor also.twitter.com/5thWave_tcronin China

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Shaggy98
Senior Advisor

Re: WHEAT Market, perhaps the globe

Hey Wright, I like the way you think when you're giving what you think the price off all commodities should be, but come on back down to earth.

 

The prices we want are very seldom the prices we get.

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