Wheat Futures Higher Amid Russia’s Export Surge, But Not For Long

Wheat futures have been taking a break from the sell-off of recent weeks partially because of the Russian surge of wheat exports – but that might all change soon. Wheat futures are up .04 cents today currently trading at $4.025 per bushel at the Chicago Board of Trade. The consensus is in with Russia’s bumper wheat crop setting a record high, but the discovery of a worse quality than expected and tough international competition may make getting rid of their grain a challenge for them. They’re not the only country to realize poorer quality wheat, but Australia is experiencing this too putting higher grade wheat in demand. “The quality of wheat is worse this year than a year ago,” said USDA-bureau official, sharing their fundamental assessment of the wheat futures market. The USDA added, “Although the same volumes of good quality wheat are likely, due to the bigger crop, it will be more difficult to compose batches of good wheat.” The technical trend for wheat is “down” with no bottom yet in sight. The wheat futures market is a “sell the rallies” opportunity until a bottom is in. ALL COMMENTARY IS CONSIDERED OPINION & VIEWS FROM THE AUTHOR AND NOT A SOLICITATION OF ANY SECURITIES. THE RISK OF LOSS IN TRADING COMMODITY INTERESTS CAN BE SUBSTANTIAL. YOU SHOULD THEREFORE CONSIDER WHETHER SUCH TRADING IS SUITABLE FOR YOU IN LIGHT OF YOUR FINANCIAL...

Current Global Grain Market Shines on US Wheat Futures

Wheat futures may be getting a boost today from a report I read regarding Europe’s wheat production challenges a possible boon for the American farmer in the foreseeable future. Wheat futures are up .01 cent today currently trading at $4.16 per bushel at the Chicago Board of Trade. This past week it was observed by a commodity trading professional that Europe seems to have a double-whammy problem of “quality problems” over a broad area and talk from across the pond that the yield isn’t as quite good as expected. There is a very good possibility that some European business may be shifting to the United States. Jim Bower, of Bower Trading – a commodity futures specialty firm, shared his fundamental view of the wheat futures market by stating, “I actually thought wheat acted halfway decent [this past week] because it seemed kind of to ignore bearish news.” Bower adds, “Now it may take a little while, but I think the worst is over in wheat.” Wheat futures trend is “down” with no bottom formation completely in sight. Wheat futures current low around the $4.07 level is currently being tested.. ALL COMMENTARY IS CONSIDERED OPINION & VIEWS FROM THE AUTHOR AND NOT A SOLICITATION OF ANY SECURITIES. THE RISK OF LOSS IN TRADING COMMODITY INTERESTS CAN BE SUBSTANTIAL. YOU SHOULD THEREFORE CONSIDER WHETHER SUCH TRADING IS SUITABLE FOR YOU IN LIGHT OF YOUR FINANCIAL...

Egypt Said to be Loading Up at Bargain Wheat Futures Prices

Wheat futures continue to fall after Egypt reportedly tendered their second wheat purchase of the season from four different sources. Wheat futures are down just over .10 cents today currently trading near $4.19 per bushel at the Chicago Board of Trade. The worlds number one wheat importer (Egypt) is said to have paid more for its wheat this past weekend – which is so early in the season – despite discounts from many wheat merchants underscoring a shift to the east in export competition. The 300T tons purchased is almost $2 a ton more purchased on Saturday than today (Tuesday). “Initially there were 12 offers to Egypt’s wheat tenders and eight merchants actually dropped their price for the weekend business,” said Danielle Bourbeau, a commodity broker for Capital Trading Group in Chicago, sharing her fundamental assessment of the wheat futures market. Bourbeau added, “Wheat certainly remains abundant now and the (wheat futures) prices reflect that.” The trend for wheat futures is “down” with a possible bottom in place. Although this is the time of year when wheat futures rally, it is still very weak looking in my technical analysis study on my charts. ALL COMMENTARY IS CONSIDERED OPINION & VIEWS FROM THE AUTHOR AND NOT A SOLICITATION OF ANY SECURITIES. THE RISK OF LOSS IN TRADING COMMODITY INTERESTS CAN BE SUBSTANTIAL. YOU SHOULD THEREFORE CONSIDER WHETHER SUCH TRADING IS SUITABLE FOR YOU IN LIGHT OF YOUR FINANCIAL...

Wheat Futures Plummet as Australian Wheat Crop Lifts to Four-Year High

Wheat futures continue their $0.50 cent sell-off from the June 8th $5.24 high as the outlook of Australia’s wheat harvest rising further than expected to a four-year high hits the news. Wheat futures are currently “down” .035c per bushel today currently trading at $4.74 per ton at the Chicago Board of Trade. The world’s top wheat exporter in the southern hemisphere is said to produce nearly 25.4M tons of wheat for the 2016-17 season – an upgrade of 880T tons from a previous forecast in March. If it comes to be, this will be the most Australia has produced since 2012 when drought plagued the continent. Barb Levy, chief director for The Fox Group’s futures division in Chicago, shared her fundamental view of the wheat futures market by stating, “This recent wheat production estimation is a significant improvement of well over 1.0M tons over last year’s harvest.” Levy adds, “The pendulum has swung the other way in terms of favorable weather having only heard news of drought and dryer than normal weather in past few years regarding their wheat growing conditions.” Wheat futures current trend is still technically “up.” However, if we have a couple more wheat futures trading sessions below the $4.86 price threshold, then we could be rolling over to down into the northern hemisphere’s harvest period. ALL COMMENTARY IS CONSIDERED OPINION & VIEWS FROM THE AUTHOR AND NOT A SOLICITATION OF ANY SECURITIES. THE RISK OF LOSS IN TRADING COMMODITY INTERESTS CAN BE SUBSTANTIAL. YOU SHOULD THEREFORE CONSIDER WHETHER SUCH TRADING IS SUITABLE FOR YOU IN LIGHT OF YOUR FINANCIAL...

Egypt’s Forthcoming Wheat Supplies Will Depend on United Nation’s Review

Wheat futures recent uptick in activity may have have something to do with the world’s biggest wheat buyer conceding to import wheat with traces of fungus in it despite an ongoing dispute. Wheat futures is down .05 cents today currently trading at $4.7225 per bushel at the Chicago Board of Trade. Egypt now says it will allow wheat with the ergot fungus into the country with the assistance of the UN Food & Agriculture Organization to help resolve the dispute on a scientific basis. The fungus is a common problem with grain shipments, but Egypt had put its foot down rejecting grain shipments in the past causing a crisis in global suppliers. Laura Taylor, a senior market strategist at RJO Futures in Chicago, shared her fundamental view of the wheat futures market by stating, “This dilemma of ergot fungus with wheat has persisted for months now and maybe it does take a United Nations body of people to mediate the situation properly so the Egyptians have more confidence.” Taylor adds, “The country is, after-all, the biggest importers of wheat in the world and the problem could be elevated to a national security problem if it got out of hand.” Wheat futures trend has turned “up” only recently with little follow through to the upside. I would expect wheat futures to test their contract lows soon. ALL COMMENTARY IS CONSIDERED OPINION & VIEWS FROM THE AUTHOR AND NOT A SOLICITATION OF ANY SECURITIES. THE RISK OF LOSS IN TRADING COMMODITY INTERESTS CAN BE SUBSTANTIAL. YOU SHOULD THEREFORE CONSIDER WHETHER SUCH TRADING IS SUITABLE FOR YOU IN LIGHT OF YOUR FINANCIAL...

Bleak Crop Prices Cause 46-Year Low for Domestic Sowings: Wheat Futures

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. ALL COMMENTARY IS CONSIDERED OPINION & VIEWS FROM THE AUTHOR AND NOT A SOLICITATION OF ANY SECURITIES. THE RISK OF LOSS IN TRADING COMMODITY INTERESTS CAN BE SUBSTANTIAL. YOU SHOULD THEREFORE CONSIDER WHETHER SUCH TRADING IS SUITABLE FOR YOU IN LIGHT OF YOUR FINANCIAL...