11/22/17 Reminder there will be no afternoon market today and our office will be closed on Friday for Thanksgiving.
Futures are trading quietly ahead of the holiday this morning. Yesterday there was some buzz about a nuclear accident in either Russia or Kazakhstan back in September. This was actually old news but the Russian's just actually confirmed it yesterday. Supposedly there isn't anything to worry about as the elevated levels of radiation are in the vacinity of the Ural mountains and at lower levels than would be necessary to cause any harm to anything. It does make speculators who are short a large amount of wheat futrues a bit nervous when anything Russian related is in the news however it doesn't look like there's much to this story at this time, something to keep on the radar though.
The Weekly Top Five
These are the 5 biggest issues that NWGG feel are affecting today's markets and items to watch for as we progress through the year.
1: 11/15/17 The latest USDA report trimmed U.S. and world wheat ending stocks a small amount but the overall supply situation remains bearish. 2: 11/15/17 White wheat projected ending stocks were increased 4 million bushels on a reduction to domestic demand on the supply and demand report. The USDA's projected exports of 210 million bushels are based on a strong initial sales pace which has now begun to cool off, if extra business doesn't materialize from buyers replacing Australian wheat it isn't likely that we'll meet this projection. 3: 11/15/17 Australia has just started harvest and initial results seem to indicate that the projected 20 million metric tons of production is accurate. There's still a lot of time and crop left so we'll see if this continues to hold. 4. 11/15/17 Russia's currency has dropped in value pretty dramatically since October which increases their competitiveness on the export front. Russian exports are being heavily relied on this year after a record harvest keeps them as the cheapest wheat in the world. If they have any logistical issues due to winter weather or political conflicts then perhaps we can pick up some additional export business. 5. 11/15/17 The USDA raised corn production on the latest supply and demand report above market expectations with a new all time record yield of 175.4 bushels per acre, in spite of weekly condition reports showing a crop in worse condition than any of the crops in the last 4 years.