With the outlook global wheat production will reach a new record level, wheat futures continued their slide to new lows not seen in four years. Wheat futures are down another .09c from yesterday’s close as of this writing.
The good news is the global grain-glut with increasing supplies is helping to lower global food prices, as seen in the United Nations’ food costs index also nearing a four-year low. The USDA forecasts world wheat output to increase to nearly 720M metric tons for the forthcoming 2014-15 season.
Nicholas Medina, a futures and options specialist for Capital Trading Group in Chicago, shared his insight regarding the current wheat futures situation, “With harvest underway in grains, expect record breaking yields that may surpass all previous expectations.”
The trend for wheat futures is in a continuing decent lower. We are short wheat futures upon the opening bell, however I do expect some type of relief rally in the not so distant future.
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