MarketsFarm — As harvests of soybeans, corn and spring wheat advanced in the United States, trader John Weyer of Walsh Commercial Hedging Services said the pressure on those commodities was going to continue over coming weeks.
“We might test some technical levels, see some selloffs a bit and get some of it back. It’s going to be the ‘tale of the tape’ for the next two to three weeks,” Weyer said.
But he pointed to a few concerns that had been on traders’ minds heading into the week of Oct. 2, one being the possible shutdown of the U.S. federal government. That was avoided when Democrats and Republicans struck a deal to keep the coffers open.
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“And we were in a risk-off mode, and we were getting to the end of the month and the quarter,” Weyer added, and on Tuesday “we saw some pretty nice moves to the upside, with corn and wheat in particular.”
Now, with the U.S. Midwest set to get good weather, the harvest will likely pick up speed, the trader said.
“Wheat is dragging corn with it and keeping the beans from rallying more,” he stated, noting there wasn’t any major weather systems to stall the combines from making their rounds.
In looking ahead to the next supply and demand estimates to be released by the U.S. Department of Agriculture on Oct. 12, Weyer noted the report could have a few surprises.
“Watch the ending stocks. That will be the one set of numbers that will move the markets. There are no heavy concerns about supply in general,” he said.
— Glen Hallick reports for MarketsFarm from Winnipeg.
