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 CONDITION.