Corn on Thin Ice; Wheat Going Nowhere

(Inside Futures) –  Wheat prices this morning are lower to around the 411. And, this may sound like a broken record but Wheat prices have struggled to close above my psychological levels of 425/430. There is still a net short interest in Wheat of which is taking advantage of its daily erosion factor. To paraphrase from my last writing, we’re basically up one day and down the next suggesting markets are waiting for the next piece of significant news. As for plantings in the US, don’t believe what you read for there’s absolutely no decrease in the acreage planted, especially in Oklahoma and Kansas.

It seems now that the world is waking up to what my channel checks over the past several weeks have been suggesting; that is, there is an enormous amount of Corn now in storage as a result of this year’s bumper crop. For example, SocGen is now reporting that every farmer should sell every rally leading up to next summer. Huh? This is what I’ve been stating for weeks. SocGen’s opinion is based on the (totally worthless) Wasde’s monthly report which suggested US Corn yields at decade high levels. As I mentioned in my last report, corn yields in the Midwest (according to my channel checks) are running between 10 to 20 bushels above average per acre. Once again I ask the question: Why does Corn have a 350 handle? Never Catch A Falling Knife.

MORNING CALL and Recommendation:

Short @KW: Both Algorithm points south. Take advantage of the daily erosion factor.

POSITION:

Short: @KW (Hard Red Winter Wheat)

Price: 416.00 (10/20/2016)(continuous contract)

Current Price: 411.75 (11/11/2016, 7am CST)

PROFIT/LOSS:

+180.25(as of January 2nd, 2016; per 1 contract)

FULL DISCLOSURE: Short KW