Wheat futures are finding temporary support with the word out today that farmers are cutting back on their wheat sowings due to prices reportedly having the outlook of falling back to what they were a decade ago. Wheat futures are up .03 cents today currently trading just above $4.54 per bushel at the Chicago Board of Trade..
In its primary report for US crop sowings this year, the USDA estimates farmers will abandon 3M acres this year due to expected price reductions for certain crops such as wheat, soybeans, and corn. It’s not just winter wheat with this circumstance either, but spring wheat is also estimated to decline by 5% with 3.6M acres being abandoned for “all-wheat” production total.
“Farmers are doing their best to economize their time, energy, and overhead with the current glut situation while grain prices were high,” said Gerry Plotkin, a Senior Market Strategist for R.J. O’Brien in Chicago, sharing his fundamental assessment of the wheat futures market. Plotkin added, “Soybeans and corn are also expected to see less acreage for sowings, but cotton seems to be bucking the trend with an additional 800,000 thousand acres for plantings.”
The trend for wheat futures remains down with further losses expected going into the harvest period. Wheat futures have just made new contract lows only yesterday – so no bottom yet in sight.
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