Fundamentals for Wheat & Corn Turning Bullish

Jerry Welch, Commodity Insite!

Call me at 406 -682 -5010
Ennis, Montana 59729

Here are a few grain comments I posted in the morning edition of my twice a day newsletter, Commodity Insite. The posting was sent to my subscribers, brokerage clients and recent buyers of my book Haunted By Markets.

------------------------------------------------------------------

"In yesterdays report the USDA did lower wheat production in Europe, Australia, Russia and the Ukraine enough to tighten the stocks-to-use ratio back to levels of 2007, 11 years ago. Thus, from a statistical viewpoint, a bull case for wheat prices can be made moving forward. In theory, those major wheat producers above will have less wheat for export which should push demand to the US. That is was most bullish item in the report in my view."


"Note. In 2007, KC wheat bottomed in March around the $4.33 level and by December was as high as $10.29. The market did not top out, however, until in February 2008 at $13.84. Wheat had a wildly bullish run in 2007 to say the least. And now the wheat stocks-to-use ratio for Europe, Russia, the Ukraine and Australia is at the levels of 2017. Is that food for thought or what!

-------------------------------------------------------------------------


Later in the session, one of my sources suggested the White House and China may try to back away from the trade war that has been underway since early March and bring some stability to the soy complex. When I heard that rumor I quickly posted a Special Email Alert. Note the time sent


--------------------------------------------------------------------------


special email alert!

As a new trade: buy (1) November soybean at the market. The last is $8.30 with a daily range of $8.531/4 to $8.263/4. Use a $8.23 stop, intra-day.


The time is 9:08 a.m. Chicago

----------------------------------------------------------------------

I came into the day long KC wheat that closed 10 cents higher and bought soybeans this morning at $8.30 with the market settling at $8.341/4. The fact I was long KC wheat goes back to article I posted here on Inside Futures a few days ago entitled, "KC Wheat To Lead Grain Rallies."


If interested in Haunted By Markets and receiving my twice a day newsletter for free for 1 month go to www.commodityinsite.com. Of course, with my book and newsletter you do receive all my Special Email Alerts.


Never forget. There is no substitute for timely and accurate information.


The time is 2:42 p.m Chicago.


PS ..I just now heard from another source that China and the US may come to the table this weekend to help cool down the trade war. If so, look for soybeans to leap higher Sunday night.


The upside potential for grain prices from current levels and in light of the bullish fundamentals quickly unfolding in the wheat and corn markets is great. And those that will do best in the new environment are those that receive, "timely and accurate information."





This material has been prepared by a sales or trading employee or agent of Midwest Market Solutions and is, or is in the nature of, a solicitation. This material is not a research report prepared by Midwest Market Solutions Research Department. By accepting this communication, you agree that you are an experienced user of the futures markets, capable of making independent trading decisions, and agree that you are not, and will not, rely solely on this communication in making trading decisions.


DISTRIBUTION IN SOME JURISDICTIONS MAY BE PROHIBITED OR RESTRICTED BY LAW. PERSONS IN POSSESSION OF THIS COMMUNICATION INDIRECTLY SHOULD INFORM THEMSELVES ABOUT AND OBSERVE ANY SUCH PROHIBITION OR RESTRICTIONS. TO THE EXTENT THAT YOU HAVE RECEIVED THIS COMMUNICATION INDIRECTLY AND SOLICITATIONS ARE PROHIBITED IN YOUR JURISDICTION WITHOUT REGISTRATION, THE MARKET COMMENTARY IN THIS COMMUNICATION SHOULD NOT BE CONSIDERED A SOLICITATION.


The risk of loss in trading futures and/or options is substantial and each investor and/or trader must consider whether this is a suitable investment. Past performance, whether actual or indicated by simulated historical tests of strategies, is not indicative of future results. Trading advice is based on information taken from trades and statistical services and other sources that Midwest Market Solutions believes are reliable. We do not guarantee that such information is accurate or complete and it should not be relied upon as such. Trading advice reflects our good faith judgment at a specific time and is subject to change without notice.There is no guarantee that the advice we give will result in profitable trades.