<\/p>\n<\/a>Grains<\/u> –
\nI want to review the thoughts on wheat and corn from last Friday in a bit more detail this morning.\u00a0 I think it is very important to note the differences developing in the world balance sheets between the two markets, and I want to make sure we\u2019re clear on the subject.\u00a0 Today I want to offer two additional charts for your review to explain the changes.<\/p>\n
I\u2019ve calculated world ending stocks for both corn and wheat here in terms of days of use.\u00a0 And for each market I\u2019m also calculating stocks in terms of days of use excluding Chinese stocks and use.\u00a0 This further underscores the points made on Friday.<\/p>\n
In the case of wheat, yes when you account for China world ending stocks in terms of days of use have ballooned substantially in recent years, but excluding China this is a completely different story.\u00a0 Any potential weather adversity this year might put the wheat market into an interesting position.\u00a0 Of course this days of use calculation is accounting for demand and any supply disruption will affect demand and thus the calculations\u2026 but you still get the point.<\/p>\n
Corn is the opposite of wheat, with the Chinese government force-feeding domestic corn consumption to unload their inventories.\u00a0 Outside of China, however, stocks appear to be building further after bottoming at the 2012 drought.<\/p>\n
<\/p>\n
<\/p>\n
DISCLAIMER<\/u><\/strong>:<\/strong> Grains – I want to review the thoughts on wheat and corn from last Friday in a bit more detail this morning.\u00a0 I think it is very important to note the differences developing in the world balance sheets between the two markets, and I want to make sure we\u2019re clear on the subject.\u00a0 Today I […]<\/p>\n","protected":false},"author":4,"featured_media":1797,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[13],"tags":[],"yoast_head":"\n
\nThe information contained herein has been taken from trade and statistical services and other sources we believe are reliable. Opinions expressed reflect judgments at this date and are subject to change without notice. These materials represent the opinions and viewpoints of the author\u00a0 and do not necessarily reflect the opinions or trading strategies of Nesvick Trading Group LLC and its subsidiaries. Nesvick Trading Group, LLC does not guarantee that such information is accurate or complete and it should not be relied upon as such. Officers, employees, and affiliates of Nesvick Trading Group, LLC may or may not, from time to time, have long or short positions in, and buy or sell, the securities and derivatives (for their own account or others), if any, referred to in this commentary. There is risk of loss in trading futures and options and it is not suitable for all investors. PAST RESULTS ARE NOT NECESSARILY INDICATIVE OF FUTURE RETURNS. Nesvick Trading Group LLC is not responsible for any redistribution of this material by third parties or any trading decision taken by persons not intended to view this material.<\/p>\n","protected":false},"excerpt":{"rendered":"