Wheat futures extended its lows (after yesterday’s spiral) to prices not seen in four weeks after rain had been forecasted in key wheat growing states. Wheat futures ended the trading session near $4.95 per bushel at the Chicago Board of Trade.
Traders had been monitoring the precipitation models closely for this news and yesterday’s .24c plunge began the confirmation of this development. Also yesterday, the USDA confirmed the domestic winter wheat crop being rated at 42% “good to excellent” as of April 12th – down from 44% the week earlier, but much better than the “34%” rating this time last year.
“The unknown rainfall factor for wheat traders is revealing itself,” said Kevin Riordan, director of research at Capital Trading Group in Chicago, sharing his fundamental analysis regarding the current wheat futures situation. Riordan added, “The wheat (futures) market had been on (what seemed) stand-by mode for a few weeks, but the seasonal tendency appears to be playing out.”
Wheat futures trend is at a crossroad – still technically up, but if the market takes out today’s low before trading up to the $5.18 level, that would create the means to be bearish. Wheat futures had been trading sideways for almost three months, but now a clearer picture should be unfolding.
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.