Wheat futures have stalled after reaching six-month highs following Tuesday’s major USDA crop progress report and the concern over the pace of the harvest. Wheat futures today are down one cent (as of this writing) currently trading at $5.875 per bushel – off .30 cents from Tuesday’s post-report, six-month high.
Traders rallied wheat (futures) prices into, and after, the USDA announced two key reports on acreage committed to certain grains and crops, plus quarterly stock inventory. Even before the report was released the last day in June, wheat prices had already soared 23% on the outlook that excessive rainfall in the Midwest will damage crops and delay the pace of harvesting.
Barb Levy, chief director for The Fox Group’s futures division in Chicago, shares her view regarding the fundamental assessment of the wheat futures markets by stating, “The speculation may have been too heated for wheat (futures) especially after rallying .30 cents after the report Tuesday.” Levy added, “(Wheat) traders brought the price up so far, so fast, only they can negotiate where wheat prices go from here. All eyes on the actual harvest from here.”
The trend in wheat futures is clearly up, but at the beginning of last week this wasn’t the case. Wheat futures came out of a down-trend on this current speculation, and there is no top yet in sight…
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