Wheat futures continue their ascent higher on the outlook cold weather in the Russian wheat growing region possibly damaging recently planted crops that haven’t yet begun winter dormancy. Wheat futures are up for the day .045 cents per bushel (near $5.27) as of this writing.
A prominent weather forecaster says low temperatures today in the crop regions of Russia are expected to be well below freezing and continue through the weekend. Other experts say dry weather there has already deteriorated crop conditions leaving newer plants more susceptible to frost.
“Wheat (futures) enjoyed spill over buying from the soybean and corn markets today. The wheat market shrugged off disappointing export sales and continued to trade higher,” said Kevin Craney, Director of Managed Futures at RJO Futures in Chicago, sharing his insight regarding the current wheat futures situation. Craney added, “All eyes will remain on weather conditions in the Black Sea region and it will affect their winter wheat.”
The trend for wheat futures has turned up earlier this month. With little follow-through to the upside for wheat futures, I would prefer to go long these markets on the next pull-back in price.
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