Wheat is back
Monday, December 12, 2022 at 8:22:49 p.m. UTC
Top 3 – Things to Watch this week:
1. China is trying to buy oil and gas from the Saudis using the Yuan. This move is a direct threat to US dollar dominance and if it happens it will have an impact on Canadian grain exports.
2. U.S. wheat and corn futures rallied on Monday after a weekend attack that temporarily shut down key port for Ukrainian exports raised concerns about disruptions to grain shipments.
3. Argentina is still in a serious drought. Wheat crop has been slashed from 19 MMT down to 11 and there reports that the final numbers will be under 8 MMT.
This week’s Action Item:
Wheat may have bottomed out last week. There seems to be some big spreads between elevators right now. Now is the time to phone around and check basis levels and if they are really good lock them in using a basis contract. Then wait for a reasonable rally.