Wheat futures initially extended their losses from yesterday earlier in the trading session because of the outlook of waning demand for domestic supplies. May Wheat futures have since rebounded and are currently .03 cents higher at the Chicago Board of Trade, and .015 cents higher at the Kansas City Board of trade (as of this writing).
Wheat futures took a significant plunge yesterday when it was revealed Egypt cancelled their tender to purchase US wheat. This is an important factor in the price of wheat because Egypt happens to be the world’s biggest wheat importer.
Gerry Plotkin, a Senior Market Strategist for R.J. O’Brien in Chicago, shared his fundamental analysis insight regarding the current wheat futures situation by stating, “The Egypt factor (canceling their order to buy US wheat) is a telling factor of the problem with ample world supplies against our strong US dollar.” Plotkin added, “The seasonal factor for wheat futures is also developing.”
Wheat futures trend is technically down, but at a crossroads. The outlook for wheat futures is all bearish if you listen to the news, but this market could be bottoming if May Wheat were to trade up to $5.45 per bushel before taking out today’s lows in the very near future.
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 CONDITION.