Larger Than Expected Harvest in Canada Helps Lower Wheat Futures

Wheat futures have been set-back since Tuesday after a spectacular run-up over the Thanksgiving holiday period. Just today, wheat futures have extended their lows after Canada’s statistics office upped its forecast for their wheat production when it was learned farmers harvested bigger wheat crops than expected.

Word from Ottawa is Canada’s wheat production will reach just over 29M metric tons, compared to its previous prediction of 27.5M tons. Last year Canada realized a record amount of wheat reaching 37.5M tons of total production.

Jeff Evans, a Senior Broker and Vice-President of the Managed Accounts Division for RMB Group in Chicago, shared his fundamental analysis insight regarding the current wheat futures situation by stating, This is something traders simply weren’t expecting.” Evans added, It’s unusual for such numbers to be provided so late in the year.”

Wheat futures trend is up as of mid/late November. I am looking into a lower-risk entry into wheat futures 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 CONDITION.