There were no major surprises for the corn and soybean markets in the USDA report published on Friday, however the wheat ending stocks projections were lower than the trade was expecting.
The smaller stocks, together with funds short-covering, have provided some support to wheat futures over the last week, explains Austin Damiani, commodities broker with Frontier Futures in Minneapolis, in the interview above.
He says wheat futures in Minneapolis, Kansas City and Chicago have all likely reached an interim low, with harvest in the home stretch.
“Most of the wheat fundamentals are out here and known. There are a couple of lose ends — Canadian production came down a bit, but the only other variable is some southern hemisphere production figures, with Brazil, Argentina and Australia being the big one,” notes Damiani. “We could continue to see a little bit of tightening there on the global balance sheet.”
According to the futures, it pays to keep wheat in the bin right now, he adds.
“There are really attractive carries in the market, particularly for spring wheat. Although things have tightened up a bit this week,” says Damiani. “The producers and elevators we’ve been working with, we’ve been telling them to take advantage of that carry and put some short hedges out into Dec 15.”
If you can’t see the audio above, click here.