Europe Financial Woes, Smaller crops
Monday, October 3, 2022 at 3:23:37 p.m. UTC
Top 3 – Things to Watch this week:
1. Macro Financial Picture. Seems like there are some credit problems with some of the European banks. There are some similarities to what happened in 2008 with the banks in the US.
2. Wheat Production in USA was down this year from 1.77 billion bushels to 1.65. This is not a surprise as winter wheat crop was poor. This gives strength to the wheat market.
3. Canola market has reclaimed the 850 territory. It seems that the trade is figuring out that the canola crop was not as large as expected. Elevators are already offering “premiums”
This week’s Action Item:
A target price of $13 for HRS wheat for 50% of production. If you a big speculator, then I would not do anything until spring. Wait to see what happens in Europe with their fertilizer situation.