Wheat drops $0.95 in the last week!

Corey Burns

Good Morning. It looks like we may finally be getting a couple of decent days at the beginning on next week. At least that is what they are saying today! On a darker note, wheat prices have dropped $0.95 in the last week. At $6.80 we are still well above the historical average of around four bucks.The price is at its highest in May at $7.08. Next years crop is at $6.88.
Get you buggies and trucks ready to hit the ground running next week. You may not have a very big window to get that fertilizer spread. Have a great weekend!

             Crude is up near $2 in early trade, Gold is up $5, US $ is at all time lows vs. the Yen. Sorta sets the table for this mornings activity (everything called sharply higher… +.15 to .20). Sales report showed very strong numbers in corn with 40.8 myn bu of o/c sales and 11.8 myn bu of n/c sales. Traders were expecting something totaling about 19-31 myn bu. So the 52.6 myn bu will be a pleasant surprise. Even after the washout, corn fundamentals remain decidedly friendly. Wheat sales were also strong with 24.4 myn bu of o/c and 7.6 myn bu of n/c. The 32 myn bu total was also more than traders expected as they were looking for something in the 18-29 myn bu range. One thing about wheat though, all year long sales have looked pretty good, the problem is with actual shipments which are lagging badly (remember all unshipped bushels will be added to the S&D’s at the end of the year). Weather man is calling for hard freeze in the next 8-9 days (next weekend). Today it looks like it may extend far enough south and west to at least hit part of the HRW country. SRW will certainly be exposed. What the temps do just before the cold snap will have a large impact on what damage may occur.
             Brazilian gov’t will allow a ‘Major’ seed company to start selling GMO corn seed. This will be the first 5 gene stacked corn in Brazil and means the 2012 crop may be a large % of GMO. Serbian gov’t has suspended wheat exports. They have already booked 23.8 myn bu vs. a total quota of 18.3 myn bu.

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