Wheat futures are testing last weeks lows one day after the release of the USDA crop production report and earlier reports of domestic spring wheat planting near completion. Wheat futures are currently down .08 cents today near $4.725 cents per bushel at the Chicago Board of Trade.
A total of six states where 99% of the 2014 spring wheat crop domestic crop was planted are now reporting near completion and well above their five-year average for plantings. The five-year average of 51% of the spring wheat crop planted is being surpassed and currently at “87%” as of May 10th reporting.
“With spring wheat near completion so early its no surprise to learn a 54% ‘emerging’ so soon in the season,” said Gerry Plotkin, a Senior Market Strategist for R.J. O’Brien in Chicago, regarding the fundamental assessment of the spring wheat futures market. Plotkin added, “With favorable weather forecasted, wheat farmers are adding more supply to plentiful stocks.”
The trend for wheat futures continues to be down with the market currently testing the May 5th low. With no bullish news in sight, it will be interesting to see how wheat negotiates heavy support .12 cents lower.
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